Victoria Real Estate Overview - The Victoria Real Estate market was slow in September. Really slow. October is typically the top of the fall market and September usually gets that ball rolling after a slow summer. It appears that with all the nice weather no one got the memo that it’s supposed to be a fall market. On the other hand, appropriately priced and marketed homes are still selling and even going in multiple offers. While inventory has certainly had an opportunity to build with the slow sales, it doesn’t seem we are at a point with rising interest rates that sellers need to sell. Inventory is still under historical averages which keep us from technically being in a buyers market, although inventory is a far cry from its recent lows.

Getting into the Numbers - Compared to last September, there were 46.1% fewer sales this September with only 410 properties changing hands in the Victoria area (also 14.2% fewer than sales in August). Condo sales were the slowest with only 126 sales, a 58.8% difference from the number of sales in the same month last year. Single family homes were a bit more steady with 221 sales, which was 33.2% less than last year. 

Inventory more than doubled, building 104.6% in the last year, reaching 2,300 active listings at the end of September. The number of listings on the market has been increasing month over month since May, and August to September posted a 7.6% increase.

On Price - The Multiple Listing Service Home Price Index benchmark value for a single family home in the Victoria Core in September 2021 was $1,201,100. Year over year the benchmark price increased by 13.6 per cent to $1,364,200. However the benchmark value peaked in June at $1,464,400, since then the market has taken a turn and the benchmark price has decreased 6.8% to 1,364,200. The MLS HPI benchmark value for a condominium in the Victoria Core area in September 2021 was $519,200. Year over year the benchmark price increased by 18.9 per cent to $617,400. Condos also peaked in June with a benchmark price of $643,100 and have since seen a 4% decrease to $617,400.

Looking Forward - The crystal ball is especially cloudy as there are many variables that are affecting the direction things go. Firstly, if inflation refuses to cooperate then interest rate will likely continue to rise, a proposition that was relatively assured wouldn’t be necessary. If rates run too far then some sellers, especially those on a variable rate who bought around the peak could be looking to sell with some urgency. That situation could be somewhat catastrophic so it is very possible the powers that be will look at other options for reining in inflation. If the other measures are unsuccessful lots of people could still be in some hot water due to the increased cost of living. On the other hand, inventory is still low, rates are still low compared to anything other than the last couple of years, and all it would take to see a hot market again is a little increased consumer confidence. Anecdotally (meaning the stuff next month's stats will be based on) we have seen a few properties generating lots of interest and selling with single digit days on the market. This doesn’t seem to support the dearth of buyers indicated in the stats.

About the Team - As for the Neal Estate Group, we are feeling the slow down less than most and have kept close to last year's numbers and grown our market share by helping our clients take maximum advantage of the current environment.

Click Here for a FREE consultation or call 250-386-8181. Find new listings before they get to MLS and ask us about featuring your home on VictoriaComingSoonListings.com, where we generate interest while you're getting ready to come to market. Ask us also about our FREE Staging Consultation for advice on preparing your home in its best light for the market, ensuring you the best results.