The Victoria housing market is off to a promising start in 2025, marked by a healthy inventory and stable pricing trends. January saw a total of 422 properties sold in the Victoria Real Estate Board region, representing a 23.8% increase from January 2024 and a slight 0.2% rise compared to December 2024.
Sales Breakdown
- Condominium sales: Up 30.4% from January 2024, with 146 units sold.
- Single-family home sales: Increased 19.8%, with 194 homes sold.
According to Dirk VanderWal, 2025 Victoria Real Estate Board Chair, the year started with notable momentum:
“Over the course of the month, we saw an uptick in new listings, and it is the first time in ten years that over one thousand new listings were added to our inventory in a January. This is a positive sign for our market as we head into 2025.”
Inventory Trends: A Positive Shift
The number of active listings at the end of January 2025 totaled 2,395, reflecting a:
- 4.6% increase from December 2024.
- 11.9% increase compared to January 2024.
For the first time in a decade, over 1,000 new listings were added to the market in January, providing more options for buyers and helping create a more balanced market. This is good news for those who may have been frustrated by low inventory levels in recent years.
Pricing Trends
The MLS® Home Price Index benchmark value provides key insights into pricing:
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Single-family homes:
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- January 2024: $1,252,200.
- January 2025: $1,287,200, a 2.8% increase year-over-year but slightly down from December’s value of $1,306,400.
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Condominiums:
- January 2024: $551,900.
- January 2025: $548,100, a 0.7% decrease year-over-year but a slight increase from December 2024’s $547,800.
Bank of Canada Update: What It Means for the Housing Market
The Bank of Canada recently reduced its target for the overnight rate to 3%, with the Bank Rate at 3.25% and the deposit rate at 2.95%. This change is coupled with a significant policy shift:
- The Bank of Canada is ending its quantitative tightening program, which previously aimed to reduce its balance sheet by selling off assets like government bonds.
- Asset purchases will resume in early March, starting gradually to stabilize and grow the Bank’s balance sheet in line with the Canadian economy’s growth.
Why this matters:
- Lower Borrowing Costs: The reduction in interest rates means more affordable mortgage rates for buyers, improving purchasing power.
- Market Stability: Ending quantitative tightening signals a shift toward supporting economic growth, which should help reduce uncertainty in the real estate market.
- Gradual Growth: Restarting asset purchases will boost market liquidity and help stabilize the housing sector.
What This Means for Buyers
For buyers, the start of 2025 offers a more favorable environment than in previous years. Here’s why:
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Increased Inventory
- With over 1,000 new listings in January, buyers have more options to choose from. This helps reduce competition and gives buyers more time to make informed decisions.
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Stable Pricing
- Single-family home prices remain stable, while condominium prices are slightly lower than last year, creating opportunities for first-time buyers or those looking to downsize.
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Favorable Interest Rates
- The Bank of Canada’s recent rate reduction means mortgage costs could decrease, making homes more affordable.
Advice for Buyers:
Start your home search early to take advantage of increased inventory and favorable rates. Work with a top realtor in Victoria BC to help you navigate the market and find the best deals.
What This Means for Sellers
For sellers, 2025 is shaping up to be a balanced market—neither overly competitive nor too slow. Here’s how you can benefit:
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Demand Remains Strong
- The 23.8% increase in sales year-over-year demonstrates that buyer demand is still present and growing.
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Stable Home Prices
- The steady increase in single-family home values (up 2.8% year-over-year) is a positive sign for sellers, indicating that your property can still command a good price.
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Balanced Market Conditions
- With more inventory available, buyers are more comfortable engaging in the market, which can lead to smoother transactions and fewer last-minute bidding wars.
Advice for Sellers:
If you’re considering selling, now is a great time to list your property. Work with a top real estate agent in Victoria BC to price your home competitively and market it effectively to attract motivated buyers.
Final Thoughts
The 2025 Victoria housing market is starting strong with increased inventory, stable pricing, and steady sales growth. The recent reduction in interest rates and the Bank of Canada’s shift in policy further support a positive outlook for buyers and sellers alike.
If you’re considering a move, whether buying or selling, connect with Brad Maclaren, a top-rated realtor in Victoria BC, to help you create the best strategy for your real estate goals.