January 2024
Happy New Year! 2024 is upon us, and the real estate market is poised to improve from the flat 2023 market. Interest rates are projected to start dropping in the spring, and the consumer confidence should increase as the year unfolds. 2023 was more of a watch and see market, with prices dropping slightly, and a large number of Buyers remaining on the sidelines due to high interest rates. 2024 should be more of the same for the first quarter but may begin to pick up in late spring if interest rates begin their descent
Below are some of the statistics for December 2023
Listing Inventory:
There were 2,132 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of December 2023, a decrease of 19.4 % compared to the previous month of November but a 26.3 % increase from the 1,688 active listings for sale at the end of December 2022. The overall inventory is still on the low side but should start to increase in the coming months.
Sales:
A total of 329 properties sold in the Victoria Real Estate Board region this December, 2.8 % more than the 320 properties sold in December 2022 and a 16.5 %decrease from November 2023. Sales of condominiums were up 14.9 %from December 2022 with 108 units sold. Sales of single family homes increased 1.3 %from December 2022 with 158 sold. A grand total of 6,207 properties sold over the course of 2023, 8.77 % fewer than the 6,804 sold in 2022. The overall sales numbers have been down over the last year, but should start to increase once interest rates start dropping, allowing more Buyers to enter the market.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in December 2022 was $1,236,500. The benchmark value for the same home in December 2023 increased by 2.5 % to $1,268,000, down from November’s value of $1,286,400. The MLS® HPI benchmark value for a condominium in the Victoria Core area in December 2022 was $565,800 while the benchmark value for the same condominium in December 2023 decreased by 0.7 % to $562,000, down from the November value of $577,400. While overall prices were up slightly from 2022 numbers, the monthly trend over the last 6 months or so has been a slight drop in prices month over month. December single family home and condo prices drop about 1.5% and 2.5% respectively from November numbers. The interest rate decisions by the Bank of Canada in the coming months will be the main factor contributing to whether prices will continue to drop or not.
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
