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 761 properties sold in the Victoria Real Estate Board region during September which is 23.1% fewer than the 989 properties sold in September 2020 and 8.4% less than August.
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.
Condo sales were up 9.3% from the previous September (2020) and 11.6% fewer condos sold in September 2021 than in August.
Sales of single-family homes were down 38.6% from September 2020 with 331 houses sold.
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.
Single family homes and townhomes continue to be high in demand with a new resurgence of the condo market. With very low inventory in all property types, we are still seeing delayed offer dates and multiple offers. The most noticeable difference over the past couple of months has been the demand for condo properties again from both end-users and investors.
Net unconditional sales: 761
New listings: 978
Active listings: 1,124
Net unconditional sales: 989
New listings: 1,294
Active listings: 2,389
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 September 2021, the sales to active listings ratio was 90% which is a 5% decrease from the 95% sales to active listings ratio in August 2021 indicating an excellent sellers’ market.
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.
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*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