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, 493 residential properties were sold in the Victoria Real Estate Board region during September 2023. The number of property sales is 20.2% more than the 410 properties sold in September 2022 (last year) and a 9.4% decrease from August 2023 (the previous month).
Sales of condominiums were up 23% from September 2022, with 155 units sold.
In addition, sales of single-family homes increased by 3.2% from September 2022, with 228 homes sold.
At the end of September 2023, there were 2,699 active listings for sale on the Victoria Board MLS®. An increase of 8.4% compared to the previous month of August 2023 and a 17.3% increase compared to the 2,300 active listings for sale at the end of September 2022.
We are continuing to see a more seasonal pattern in the real estate market, with a slowdown in activity throughout the summer months and now picking up in the fall. The increase in inventory throughout this year is a good sign and may help stabilize home prices temporarily. However, there is still strong buyer demand for single-family homes that are priced well and in good condition.
On the supply side, high building costs, limited availability of construction workers and labour in general, zoning restrictions and municipal regulations all reduce the speed and the number of new homes coming on the market.
As interest rates normalize or slightly increase, 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 September 2023, the sales to active listings ratio decreased to 22%, indicating a 6% decrease from the 28% sales to active listings ratio in August 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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