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, 775 residential properties were sold in the Victoria Real Estate Board region during May 2023. The number of property sales is 1.8% more than the 761 properties sold in May 2022 (last year) and a 21.7% increase from April 2023 (the previous month).
Sales of condominiums were down 0.8% from May 2022, with 248 units sold.
In addition, sales of single-family homes increased by 8.7% from May 2022, with 399 homes sold.
At the end of May 2023, there were 2,189 active listings for sale on the Victoria Board MLS®. An increase of 7.1% compared to the previous month of April 2023 and a 23.3% increase compared to the 1,776 active listings for sale at the end of May 2022.
As the spring market begins to grow as we head into summer, buyer demand and consumer confidence in the market have returned. Properties that are well-priced, in good condition, and in desirable neighbourhoods are receiving multiple offers, and delayed offers are becoming more prevalent again.
Housing inventory, although slightly increasing, is still very low as new homes are slow to come on the market.
Prospective home buyers are educating themselves on how much they can afford at the current interest rates now that they have stabilized. If interest rates decrease even slightly, there are many buyers who are eager to enter the housing market.
On the supply side, high building costs, limited availability of construction workers and labour in general, zoning restrictions and regulations all reduce the pace and the number of homes coming to market.
As interest rates normalize, there is still a supply and demand imbalance in the Victoria housing market. In the short-term and long-term, lack of supply will continue to be an issue for the affordability of homes in Victoria and surrounding areas unless steps are taken to add gentle density to neighbourhoods.
Below are the statistics released at month end from the Victoria Real Estate Board (VREB)
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 sales to active listings ratio can provide buyers, sellers, and their real estate 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 May 2023, the sales to active listings ratio increased to 45%, indicating a 5% increase from the 40% sales to active listings ratio in April 2023.
The Victoria, BC, real estate market is very dynamic, and many factors can 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. Easily send me a message on my contact page or email email@example.com. 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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This July update for Victoria’s real estate market was helpful for me because I invested in a property in that real estate market. Without the details shared here, I wouldn’t have been able to do it.
This blog really helped me understand the madness out there. Thank you for breaking it down so clearly and putting it into terms that anyone can digest.
Hope to be working with you in the future!