HAPPY VALENTINE’S DAY!

February 2023

The Victoria Real Estate Market started out slow as January sales were the lowest since the financial crisis fallout in 2009. The continued high interest rates appear to be the main reason for the lower numbers. The overall market will be slower in 2023, and prices may continue to soften over the next few months. However, listing inventory also remains historically low, which should prevent the market prices from falling dramatically. Victoria continues to be an extremely desirable destination for a lot of Canadians and others around the world, which always helps keep our market buoyant.

Below are some of the statistics for January 2023

Listing Inventory:

There were 1,739 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2023, an increase of 3 % compared to the previous month of December and a 133.7 %  increase from the 744 active listings for sale at the end of January 2022.

While the 2023 inventory is substantially higher than one year ago, 2022 inventory levels were an anomaly after the covid lockdowns relaxed and the market sprung to life. Therefore, these current levels are still considered seasonally low, which will help keep the market stable.

Sales:

A total of 278 properties sold in the Victoria Real Estate Board region this January, 41.4 % fewer than the 474 properties sold in January 2022 and a 13.1 % decrease from December 2022. Sales of condominiums were down 46.3 % from January 2022 with 101 units sold. Sales of single family homes decreased 33 % from January 2022 with 120 sold.

These low sales numbers are a cause for concern as Victoria and the rest of Canada reel form the effects of the high interest rates. However, the Bank of Canada has indicated they are pausing any future interest rate increases, and some of the long term fixed rates are coming down a bit, so I can’t see these extremely low sales numbers continuing in the coming months.

Average Prices:

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in January 2022 was $1,296,600. The benchmark value for the same home in January 2023 decreased by 3.5 % to $1,251,100, down from December’s value of $1,283,600. The MLS® HPI benchmark value for a condominium in the Victoria Core area in January 2022 was $561,300, while the benchmark value for the same condominium in January 2023 increased by 3 % to $578,300, up from the December value of $574,300.

Condo prices have stabilized, mainly due to the affordability factor compared to single family homes and townhouses. Prices should remain stable for lower priced condos. Single Family homes and Townhouses, and higher priced condos have dropped in price slightly since December 2022. This will probably continue for a few more months unless the interest rates start dropping sooner than expected. These uncertainties are making it very hard to predict where the market will veer in the coming months.

If you or any of your family or friends require any real estate related information, feel free to contact Dale at 250-744-0844, or email him through his website: www.dalesheppard.com

The information contained in this blog is for general information purposes only. The information is provided by Dale Sheppard and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the blogl or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this blog.