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, statistics, and property information in this post are from the Vancouver Island Real Estate Board Region. Alright, let’s get to it!
In total, 438 residential properties were sold in the Victoria Real Estate Board region during December 2021, which is 30.6% fewer properties than the 631 properties sold in December 2020 and 32.9% less than the previous month of November 2021.
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 potential buyers to choose from and, as a result, fewer monthly sales compared to last month.
Therefore, an increase in supply should be a top priority for municipalities. However, an increase in supply does not happen quickly since it takes time to secure land, rezoning applications, development permits, and construct higher-density buildings.
Condo sales in December 2021 were down 22.1% compared to the previous December (2020) with 152 units sold.
Sales of single-family homes in December 2021 were down 34.1% from December 2020 with 207 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.
A total of 10,052 properties sold in 2021, which is 18.3% more than the 8,497 properties that sold in 2020. The total sales in 2021 almost broke the sales record from 2016 where 10,622 properties were sold.
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. Over the past couple of months, the most noticeable difference has been the demand for condo properties again from both end-users and investors.
Net unconditional sales: 438
New listings: 399
Active listings: 652
Net unconditional sales: 631
New listings: 456
Active listings: 1,279
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 home 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 increase above 25%, there is upward pressure on prices, which is considered a sellers’ market.
For December 2021, the sales to active listings ratio was just about 100%, indicating little change from the 100% sales to active listings ratio in November 2021. We are still in 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. 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
| General Disclaimer
THIS WEBSITE IS A PARTICIPANT IN THE AMAZON SERVICES LLC ASSOCIATES PROGRAM, AN AFFILIATE ADVERTISING PROGRAM DESIGNED TO PROVIDE A MEANS FOR SITES TO EARN ADVERTISING FEES BY ADVERTISING AND LINKING TO AMAZON.CA.