As the summer season winds down, Victoria’s real estate market has delivered as expected, with steady numbers reflective of seasonal trends. According to the Victoria Real Estate Board (VREB), 545 properties were sold in August 2024, a modest 0.2% increase from August 2023. However, sales saw a 16.5% drop compared to July 2024, following the usual summer slowdown.
Brad Maclaren, one of Victoria’s top realtors, shares his expert take on these latest trends and what they mean for buyers and sellers.
Summer Trends: A Time to Pause
“It’s not uncommon for the last month of summer to see a bit of a dip,”. “People are focused on travel, vacations, and family time, so home shopping takes a backseat. The 0.2% increase in sales compared to last August shows how stable Victoria’s market is, even during quieter months.”
Despite this seasonal pause, Brad believes the year-over-year stability signals that buyer interest remains strong, and sellers who may have paused their listings can expect a more competitive market heading into fall.
Condominiums on the Rise
One of the standout trends in August 2024 was the 10.4% increase in condominium sales compared to August 2023. According to Brad, this highlights a key shift in buyer preferences.
“There’s a growing demand for condos in Victoria, especially among first-time buyers and those looking to downsize. With single-family home prices still high, condos offer a more affordable entry point into the market without compromising on location,” says Brad. “It’s a great time to invest in a condo, especially with prices showing a slight decline month over month.”
In August 2024, the benchmark price for a condo in Victoria’s core was $559,200, down 2.9% from the previous year. Brad sees this as an opportunity for buyers to get in at a relatively lower price point before the market heats up again in the fall.
Single-Family Homes: A Temporary Dip
While condominiums saw a sales increase, single-family home sales experienced a 7.7% decline from August 2023, with 252 homes sold. Brad attributes this to both seasonal trends and the rising cost of borrowing.
“Higher interest rates are making it more challenging for some buyers to afford larger, detached homes, especially in popular neighborhoods. That being said, I expect we’ll see a rebound as we head into the fall and more buyers return to the market,” Brad notes.
He emphasizes that while sales numbers are down, it’s crucial to understand that the demand for single-family homes remains strong. “Victoria’s housing market may experience fluctuations, but the demand for well-located, single-family homes isn’t going anywhere.”
Inventory: A Balancing Act
There were 3,191 active listings on the market at the end of August 2024, down 4.7% from July but still 28.2% higher than in August 2023. Brad believes this increased inventory is creating more options for buyers who were previously struggling to find suitable properties.
“The rise in listings gives buyers more breathing room and negotiating power compared to earlier in the year,” Brad explains. “But with fewer listings compared to July, it’s clear that sellers are also waiting for the right moment to list, likely in the busier fall months. If you’re planning to sell, now’s the time to strategize with your realtor to capitalize on the upcoming demand.”
Home Prices: A Modest Decline Offers Opportunity
The MLS® HPI benchmark value for a single-family home in Victoria’s core decreased by 3% year over year, down to $1,287,400 in August 2024. Similarly, condominium prices in the core dropped by 2.9% compared to August 2023.
Brad sees these price adjustments as a silver lining for potential buyers. “Yes, prices have softened slightly, but this is creating a window of opportunity, especially for those who have been waiting for a bit of relief. While prices remain high overall, the slight dips mean buyers can enter the market at a more favorable price than just a few months ago.”
For sellers, Brad advises working closely with a knowledgeable realtor to set competitive pricing that aligns with current market conditions. “A well-priced home will generate interest quickly, especially as the market picks up in the fall. Buyers are still out there, but they’re more price-conscious than before.”
Looking Ahead: Fall Market Expectations
As we move into fall, Brad anticipates a busier real estate market. “September traditionally marks a shift in activity as people return to their regular routines. We’ll likely see an uptick in both listings and sales as buyers and sellers refocus on their real estate goals.”
Brad encourages anyone considering a move to get ahead of the curve. “If you’re thinking about buying or selling, now is the time to act. Fall will bring more competition, so having a solid plan in place is essential.”
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