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.
This post’s data, housing prices, statistics, and property information are from the Vancouver Island Real Estate Board Region. Alright, let’s get to it!
In total, 478 residential properties sold in the Victoria Real Estate Board region during August 2022, which is 42.5% fewer properties than the 831 properties sold in August 2021 and a 6.3% decrease from the previous month of July 2022.
Overall, the Victoria real estate market seems to be less competitive for homebuyers as the urgency in the market has slowly levelled off. In addition, inventory is gradually increasing each month, and at the end of August 2022, there were 2,137 active listings for sale on the Victoria Board MLS®.
Overall, there was a 1.2% decrease from the 2,162 active listings at the end of July 2022 and a 90.8% increase from the 1,120 active listings at the end of August 2021.
The increase in interest rates has slightly discouraged some buyers and is an attempt by the Bank of Canada to cool home buyer demand and high inflation.
The Bank of Canada is expected to announce another interest rate hike on September 7th, 2022.
The good news for home buyers is that inventory (supply) is increasing. Average days on market are going up, more new listings are coming on the market daily, and sales activity is decreasing. As a result, home sellers are more willing to negotiate terms, conditions, and prices, and home buyers have more time to make their purchase decision.
Over the past two years, the market has been a complete sellers’ market, so it’s refreshing to see some balance restored as buyers have more time to write an offer and complete their due diligence.
While there is less competition for home buyers, the higher interest rates have made monthly mortgage payments more expensive in most cases for new homeowners today than they were at this time last year.
Although, over the past few months, the number of active listings has slowly increased. Limited long-term supply will continue to be an issue with housing affordability in Victoria for the short-term and long term.
Allowing secondary suites, zoning changes, and quicker approval of development permits are necessary to continue to have enough housing supply in the Greater Victoria area.
Condo sales in August 2022 were down 57.1% compared to August last year (2021), with 148 units sold.
In addition, sales of single-family homes in August 2022 were down 30.3% from August 2021, with 249 houses sold.
There were 2,137 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of August 2022, a decrease of 1.2% compared to the previous month of July 2022 with 2,162 active listings and a 90.8% increase from the 1,120 active listings for sale at the end of August 2021.
Net unconditional sales: 478
Active listings: 2,137
Net unconditional sales: 831
Active listings: 1,120
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. This measurement is the percentage of available listings that have sold in a specific month.
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 increases above 25%, there is upward pressure on prices, which is considered a sellers’ market.
For August 2022, the sales to active listings ratio dropped to 28%, indicating a 2% decrease from the 30% sales to active listings ratio in July 2022. Compared to August 2021, the sales to active listings ratio was at almost 95%. The lower the percentage, the more properties that are available for buyers.
A second factor is a low supply of new homes coming to market in Victoria because of the high construction materials prices, municipal zoning regulations, and high cost of acquiring land to build.
The Victoria, BC, real estate market is very dynamic, and many important factors influence market conditions.
If you have any questions about the Victoria real estate market or if you’d like to know what your home is worth in today’s market, I can prepare a free comparative market analysis for you! You can send me a message on my contact page or email firstname.lastname@example.org. I look forward to hearing from you!
*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
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