Update on Market Conditions in Greater Victoria
Posted by Niels Madsen on
Understanding the real estate market in Greater Victoria is key for anyone considering buying or selling a property. Our region's housing market is influenced by several factors, such as seasonality, interest rates, and economic trends, which can impact both home prices and the speed of sales. As with any market, conditions can shift rapidly, and staying informed is essential. Here are a few updates on how the market is performing.
Market Updates
This summer surpassed expectations in the real estate market, with 545 total properties sold in August across the VREB (Victoria Real Estate Board, which covers from Sooke to Sidney as well as up Island to Cobble Hill and the Gulf Islands) area. Of these, condominium sales saw a 10.4% increase compared to August 2023, while single-family home sales decreased by 7.7% in the same period.
Typically, summer is a quieter season, as many people take a break to travel and enjoy the weather and other local attractions. But this year by the end of August 2024 there were 3,191 active listings, reflecting a 28.2% increase from August 2023.
Prices
The MLS® Home Price Index benchmark value for a single-family home in the Victoria core area in August this year was $1,287,400, slightly down from July's $1,296,100 and lower than the August 2023 figure of $1,327,800. In comparison, the benchmark value for a condominium in the Victoria core area in August 2024 was $559,200, down from August 2023's $575,900.
For single-family homes across all MLS® listings, 3,749 units have been listed so far this year, a 20% increase from 3,136 during the same period last year. Of these, 1,853 properties have sold, with an average of 37 days on the market. For condominiums, 3,209 units have been listed this year, reflecting a 28% increase from last year's 2,499, with an average sale time of 39 days.
Single Family - Residential Units
Units Listed 2024 YTD: 3749 (3136 same time period last year or 20% change)
Units Sold YTD: 1853 (1755 same time period last year or 6% change)
Average Price YTD: $1,237,165 ($1,247,123 same time period last year or -1% change)
Condo Apartments
Units Listed 2024 YTD: 3209 (2499 same time period last year or 28% change)
Units Sold YTD: 1480 (1518 same time period last year or -3% change)
Average Price YTD: $600,317 ($634,703 same time period last year or -5% change)
Row/Townhouse
Units Listed 2024 YTD: 1071 (883 same time period last year or 21% change)
Units Sold YTD: 588 (545 same time period last year or 8% change)
Average Price YTD: $819,999 ($804,354 same time period last year or -5% change)
Overall, there are more units listed this year compared to last, providing a boost in available inventory. This increase in options allows homebuyers to be more discerning when searching for their ideal property. With more homes on the market, buyers have the opportunity to take their time, explore a wider range of choices, and ensure that the home selected meets all needs and preferences.
Bank of Canada Cuts Key Interest Rate to 4.25%
The Bank of Canada lowered its key interest rate to 4.25% at the beginning of September, the third consecutive cut since June. One of the factors influencing this decision is Canada’s annual inflation rate dropping to 2.5% in July, the lowest since March 2021. The cuts mean that the pricing of variable mortgages could change, and a fixed payment mortgage could see a higher proportion of the payment going towards the principal amount. Good news if you’re looking to buy, as we’ll likely see an improvement in housing affordability and options.
New Developments
Here are just a few new developments that are happening in Greater Victoria, as the city continues to be a desirable place to live and the demand for housing is continuously increasing.
Saanich Nigel Valley Neighbourhood
A 110-unit project has been approved by the Saanich council, driven by B.C. Housing. The aim is for new affordable homes in Saanich which can be completed relatively quickly. This project is the third of eight buildings envisioned in the master plan for the Nigel Valley redevelopment. That project, to be completed over 10 years, is a $250-million housing redevelopment that will eventually provide 800 new homes in the Nigel Valley.
1702 Quadra St. and 862 Fisgard St
Victoria city council has moved forward with two projects with plenty of housing but few places to park a car. With only a total of 21 parking places for the two rental housing projects which will have a combined 147 units available, this could translate into lower prices for each unit, however the lack of parking could be a hurdle for buyers.
Plans are still being finalized, but the site in the Uptown area of Saanich using two parcels of land is expected to have hundreds of homes, and include public gathering spaces, commercial space, and the potential for amenities like childcare and community health facilities.
Shelbourne Street and McRae Avenue
There’s a new development that will add 87 new homes in Saanich, offering bike parking, two levels of underground parking and a wide range of unit prices for two-bedroom, one-bedroom, and junior suites.
With an already busier summer compared to last year, the autumn season is expected to continue the momentum, making it an ideal time to take action in the real estate market. Whether you're planning to buy or sell a home, it's important to stay ahead of the curve and be prepared. For buyers, more listings and price adjustments provide the chance to explore a broader range of properties and potentially secure a great deal. For sellers, the active market means a larger pool of potential buyers who are eager to find their next home before the year ends. By connecting with us at Madsen Langlois, we can help you develop a personalized real estate strategy that aligns with your goals. Our expertise in market trends and negotiation strategies ensures that you're in the best position to achieve your property goals.