Update on Market Conditions in Greater Victoria and Why It Matters
Posted by Niels Madsen on
Being able to provide knowledgeable and effective real estate advice to our clients is a key part of the service we provide, and in order to do that, we need to have an understanding of a wide variety of factors, including market trends and outlooks for the region.
However, it’s not just professionals that can benefit from that knowledge. For homeowners and prospective buyers, knowing what’s happening can help you make informed choices, and guide your decision making process.
With that in mind, here’s why buying and selling at the right time is so important, and what the market conditions in Victoria are telling us about whether now is the right time for you to make your move.
The Importance Of Buying And Selling At The Right Time
Planning is key when it comes to buying and selling your home. You want to be able to move as seamlessly as possible, as well as make the most of your opportunities to find the best home for you.
And understanding the current and future market conditions can be a useful guiding line as you try and plan things out. For example, if you wish to move quickly, you need to be on top of all the important paperwork and preparations. Conversely, if you know you’re going to be waiting, you may want to take the time to make any renovations or cosmetic changes that could increase the value of your home.
There’s also the matter of value. For example, if you’re looking to move to a particular neighbourhood or even just to a type of area that’s likely to be popular, as we’re seeing with moves away from built up urban areas currently, it could pay significantly to be ahead of the trend, rather than coming in after prices have risen significantly and demand has taken some of the better options.
Higher Prices Here To Stay
While the initial boom in house prices that took shape during the pandemic has not remained across all markets, in many areas, especially within Victoria, the trends towards higher prices and valuations have remained.
In particular, a focus on suburban areas and first time buyers looking to move away from crowded urban areas remains a key trend to keep an eye on as we head towards 2023.
Victoria is still seeing prices rising month over month, with the benchmark price for a single family home in Victoria’s core in June coming in at a 23% increase on the same time last year. This could be something that prospective sellers may want to capitalize on sooner rather than later, as many experts expect this slowing of the market to be a short term phenomenon.
MLS Current Statistics
From the VREB newsletter: "The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in July 2021 was $1,204,900. The benchmark value for the same home in July 2022 increased by 19 per cent to $1,433,800 but was down 2.1 per cent from June's value of $1,464,400.
The MLS® HPI benchmark value for a condominium in the Victoria Core area in July 2021 was $502,600, while the benchmark value for the same condominium in July 2022 increased by 27.3 per cent to $639,600, down by 0.5 per cent from the June value of $643,100."
Of course it should be noted that values will rise and fall over time, and historically local real estate values slowly increase over time, which means that despite any month to month variations, if purchasing a home you will have a long term and sound investment. After all, people don’t buy and sell on a month to month basis!
Ongoing Inventory Concerns
One of the most common themes surrounding the real estate market in Victoria is the issue of inventory, with most estimates putting the overall stock as almost half what it would have been a decade ago.
The knock on effect is that it’s a far more competitive market for sellers, who can command more leverage and get better value. However, inroads are starting to be made, and especially for first time buyers looking for a more modern home, this can be a fruitful time to be looking for new developments and options.
Similarly, the pandemic has contributed to something of a bottleneck when it comes to construction with a number of units awaiting completion. This is why experts are calling for further moves to increase inventory, even as the current listings in Victoria have finally returned to their pre pandemic volume.
Room To Breathe
In addition to these inventory concerns, a market slowdown in terms of activity has been precipitated by the rise in interest rates over the preceding months. However, this does mean that buyers have been able to be more deliberate and selective when it comes to their choices, with a calmer and quieter market providing them with both more time and more options when it comes to finding their dream home.
This is also reflected in buyer activity, which is seeing people postpone their summer purchases in lieu of making their decisions and moves in the autumn. This could have a knock on effect if the number of people making this choice reaches a high enough volume.
No matter what the market looks like, there is no substitute for the value provided by working with experienced and knowledgeable realtors, whether you’re selling or buying. At Madsen Langlois we pride ourselves on knowledge, dedication, and attention to detail. To find out more about how we can help you make the most of your real estate opportunities, contact us today.