Welcome back to my market updates post! I will continue to update this Victoria, British Columbia, real estate market page at the beginning of each month.
All data, housing prices, and statistics in this post are from the Victoria Real Estate Board Region. Alright, let’s get to it!
A total of 831 properties were sold in August 2021, which was 15.1% less than the 979 properties sold in August 2020 and 0.5% less than the previous month of July. Sales of single-family homes were down 29.9% compared to the month of August last year, with 357 houses sold.
While at first, this may seem like the market is slowing down, it is due to low inventory levels since there are fewer home listings for buyers to choose from and, as a result, fewer monthly sales compared to last month.
At the end of August 2021, there were 1,120 active listings on the market compared to August 2020, when there were 2,584 active listings. I find this statistic super eye-opening since the Victoria real estate market was already very active and competitive for homebuyers last summer.
As interest rates remain low, homebuyers have more buying power. They can purchase higher-priced homes at an equivalent monthly mortgage payment since interest rates are low, fuelling high demand for residential real estate.
As a result, low interest rates, in addition to increasingly low supply, are influencing the real estate prices and housing market in Victoria to trend upwards, especially for single-family homes and townhomes.
Condominium sales in Victoria BC were up 31.7% compared to August 2020 and 21.5% more condos sold in August 2021 than the previous month of July.
Net unconditional sales: 831
New listings: 894
Active listings: 1,120
Net unconditional sales: 979
New listings: 1,333
Active listings: 2,584
The total residential sales over the total active residential listings ratio is a measurement of supply and demand and is expressed as a percentage at months-end. The ratio can provide buyers, sellers, and their agents an understanding of whether we are in a buyers’ market, sellers’ market, or a balanced market.
When the percentage of sales to active listings is in the 15-20% range, there is little pressure on prices either way, and it is typically considered a balanced market.
However, when the sales to active listings percentage falls below 10%, there is downward pressure on prices, which is considered a buyers’ market.
Alternatively, when the sales to active listings percentage increases above 25%, there is upward pressure on prices, which is considered a sellers’ market.
For August 2021, the sales to active listings ratio climbed back up to 95%, indicating an excellent sellers’ market, which is a 15 per cent increase compared to the previous month of July 2021, where the sales to active listings ratio was 80%.
Overall, the previous months have shown a decrease in residential sales activity primarily due to fewer available real estate listings on the market. However, house prices are trending upwards because of the low supply and strong demand for homes in Victoria’s real estate market.
A second factor is that there is a low supply of new homes coming to market in Victoria because of the high prices of construction materials, municipal zoning regulations, and high cost to acquire land to build. The Victoria bc real estate market is very dynamic and there are important factors that can influence market conditions.
If you have a question about the real estate market, I would love to help you! Feel free to reach out on my contact page or email email@example.com
*Disclaimer: The topics of discussion, content and resources on this website are general information that may not be the right solution or advice for you specifically. Not intended to solicit buyers or sellers currently under contract with a brokerage.
*Stock images from Social Squares