The Neal Estate Team's Victoria Real Estate Update for October 2021

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Victoria and South Vancouver Island remained parched amidst an inventory drought while thirsty buyers bought anything that was listed anywhere near reasonable pricing. 

There were 4 more listings on the market at the end of September compared to the end of August 2021 (1,124 listings compared to 1,120). This was a smaller increase than hoped for considering the winter months traditionally see a decrease in inventory (by about a quarter) and the number of new listings that came on this September was the lowest in about a decade and a half.

The Neal Estate Team sold 3.6% of the total sales in the Victoria area in September and increased our month-over-month transaction volume by 7.1% while the rest of the market declined 8.4% from August. 761 total properties sold across the Victoria Real Estate Board which was a 23.1% decrease year over year. Single-family home sales declined 38.6% and 7.3% to hit only 331 sales year over year and month to month respectively. Condos in Victoria had 306 units change hands which meant 11.3% less than the previous month but up 9.3% from the previous year.

The average single-family home in Victoria, according to the Home Price Index, rose 25.1% from last year to hit $1,100,200 (1% up from August). Condos rose 13.3% and hit $482,000. Home prices have been rising in conjunction with the explosion in sales volume which started in early 2020, an explosion that no one expected. Many buyers are being pushed out of the single-family home market and are finding themselves looking at condos and townhomes (both of which will likely see benchmark increases in the coming months). That being said it doesn’t take very many buyers with money to push the price of single-family homes higher when there are so few homes available. 

Looking forward it is harder than ever to say what the future will hold for the real estate market on the island. The past tells us that long periods of decline can happen, as was the case in 1992 when sale prices in Victoria rose over $700,000 and dropped under $400,000 by 1994. In that case, it took just under a decade for prices to reach their previous peak. That being said, those buyers who have resold are now far in the green and all the indicators are pointing towards home prices increasing, not crashing. Prices won’t change without a significant change in interest rates or dramatic changes in inventory. 

For sellers, it is a great time to maximize exposure as inventory wanes. For buyers, there is an opportunity with low-interest rates and low/zero vacancy rates for rentals. For either party, The Neal Estate Team is the best choice for world-class service. We are the most reviewed Real Estate Team (or individual) in Victoria and we have a 5-star rating. When you are ready to buy or sell, just ask Google or Siri “Call the best Realtor in Victoria”, we will be happy to answer your call.

If you would like to know how we are beating the market, helping our clients win, and keeping people moving safely, please call or text 250-386-1818 or simply click Here for a FREE consultation. 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.  

Stay safe,

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