Victoria Market Overview - January was theoretically one of the slowest months for real estate sales in Victoria on record. I say theoretically because although the numbers were low the pre-number activity (calls, showings, and offers) was busy, especially in the second half of January and so far in February. Talk around the brokerage water cooler says this isn’t just our group. Almost everyone at RE/MAX Generation is busy fielding calls, updating their clients, and booking showings. Inventory is up and the coming soon hopper is bursting. 

The central bank is indicating that we have passed the time for big jumps and that interest rates will remain somewhat more stable for the time being. Affordability, meaning how much buyers are actually paying per month, has remained relatively stable. So as interest rates have gone up prices have gone down. While inventory is climbing, it’s still relatively low and we’ve said multiple times that the market is particularly susceptible to quick changes based on the level of interest from buyers. 

Getting into the Numbers - In January 2023, the Victoria Real Estate Board region saw 278 property sales, a decrease of 41.4% from the 474 in January 2022 and 13.1% from December 2022. Condominium sales fell by 46.3% compared to January 2022, with 101 units sold, and single-family homes sales dropped 33% from the previous January, with 120 units sold.

The end of January also saw 1,739 active listings for sale, which represented a 3% rise from December and an impressive 133.7% increase from the same time one year prior (744 active listings in January 2022).

Considering Price/Looking Forward - If everything stays just so, that is rates stay put, inventory doesn’t grow in any great leaps or bounds, AND buyers don’t return in overwhelming force, THEN prices will also likely remain stable. Basically, we are saying if nothing changes prices will likely remain stable. That is kind of like saying, if nothing changes, nothing will change, but not quite. It means right now the mortgage rates are baked into the price and that buyers and sellers are exerting roughly equal pressure. So if rates or pressure on either side change, so will the prices. Other than mortgage rates one of the things that could affect the pressure in either direction is government intervention through policy change. Our economy is certainly on precarious footing and inflation and employment numbers will be something to watch. Without consumer confidence prices in Real Estate will fall.

In January 2022 the MLS HPI benchmark value for a single-family home in Victoria Core was $1,296,600, and in January 2023, that value decreased by 3.5% to $1,251,100, compared to December's value of $1,283,600. For condominiums in the same area, the benchmark value increased by 3% in January 2023, reaching $578,300, up from December's value of $574,300.

Neal Estate Group Highlights -  The Neal Estate Group last week held our annual general meeting. Amongst other things like being a good time, it was also a great chance for us to reaffirm our commitment to providing our agents with the best tools and training so that our clients can have the best counsel and an unfair advantage when buying or selling real estate.

The Neal Estate GroupYour Victoria & Vancouver Island Real Estate Experts“Let our experience be your guidewww.RonNeal.comwww.HomesOnVancouverIsland.ca