As we move through the summer months, the Victoria housing market continues to demonstrate resilience, showing steady activity for both buyers and sellers. In July 2024, a total of 650 properties were sold within the Victoria Real Estate Board region, representing a 9.2% increase from the 595 properties sold in July 2023. Although there was a slight decline of 1.7% in sales from June 2024, the overall market activity remains consistent with seasonal expectations.
Market Breakdown: A Closer Look at Condominiums and Single-Family Homes
The condominium market, in particular, has shown solid performance over the past year. With 213 units sold in July 2024, the market saw a 6.5% increase in sales compared to July 2023. This increase reflects growing interest in condominium living, which continues to attract a diverse range of buyers, from young professionals to retirees looking to downsize.
Single-family homes also posted strong numbers, with 319 units sold in July 2024. This represents an 8.9% increase from the previous year, indicating sustained demand for this type of property. The desire for more space, particularly in the wake of the pandemic, remains a driving factor for many buyers. The trend toward single-family homes underscores the appeal of owning property that offers privacy, outdoor space, and a sense of permanence, which is especially valued in today’s market.
Seasonal Trends and Market Expectations
“The month of July delivered another steady month of sales and listings, as we’d expect for an average summer season in our market,” said Laurie Lidstone, Chair of the 2024 Victoria Real Estate Board. “The sales in July tracked very closely to June numbers, which may have surprised some who expected that summer vacations would take more buyers out of the market. We did see inventory shrink a little from the previous month. This is not unusual for this time of year, but it is a trend we’ll keep an eye on because inventory levels are crucial to keeping our market balanced.”
Victoria’s housing market often sees a bit of a lull during the summer months, as potential buyers and sellers take time for vacations and other seasonal activities. However, the market this year has proven to be more robust than anticipated, with activity levels remaining stable. The slight decrease in inventory from June to July is a typical pattern for this time of year, as sellers who list earlier in the season often see their properties sold by mid-summer, leading to a natural reduction in available listings.
Inventory Levels: A Key Metric for Market Health
Inventory levels are a crucial indicator of market health, and as of the end of July 2024, there were 3,348 active listings on the Victoria Real Estate Board Multiple Listing Service® (MLS®). This figure represents a 3.2% decrease from June 2024, but more notably, it shows a significant 9.2% increase from the 2,419 active listings available at the end of July 2023.
The increase in active listings year-over-year is a positive sign for the market, suggesting that there is a healthy balance between supply and demand. This balance is critical for maintaining stable home prices and preventing the market from becoming either too competitive (favoring sellers) or too sluggish (favoring buyers). The slight decrease in inventory from June is not uncommon for the summer season, as many sellers prefer to list their homes in the spring when the market is traditionally more active.
However, the shrinking inventory in July 2024 is a trend worth monitoring closely. If this pattern continues, it could lead to a tightening market, where fewer homes are available, potentially driving up competition and prices. On the other hand, an increase in inventory could indicate that the market is becoming more favorable for buyers, with more choices and potentially more negotiating power.
Government Intervention and Market Dynamics
“There continues to be a lot of government intervention in our housing market,” added Chair Lidstone. “Recently, the provincial government announced changes to the Residential Tenancy Act that have resulted in some uncertainty for those considering homes with rental options. The changes have made an already complex transaction much more complicated and have added more risk. If you are considering purchasing or selling a tenanted or rental property, it’s imperative to bring in the assistance of a REALTOR® to navigate new requirements and ensure your transaction is successful.”
Government policies have always played a significant role in shaping the real estate market, and the recent changes to the Residential Tenancy Act are no exception. These changes, aimed at increasing tenant protections and regulating rental markets, have introduced new complexities for both buyers and sellers of rental properties. For example, the new rules around eviction notices and rent increases could affect the profitability and attractiveness of rental properties for investors.
These regulatory changes are likely to create some uncertainty in the market, as both buyers and sellers may hesitate or reconsider their decisions until the full implications of the new laws are clear. This could lead to a temporary slowdown in transactions involving rental properties, as stakeholders take the time to understand and adapt to the new landscape.
For those considering buying or selling tenanted properties, the guidance of a knowledgeable REALTOR® is more important than ever. Navigating these changes requires an understanding of both the legal requirements and the market dynamics, ensuring that transactions are completed smoothly and successfully.
Home Prices: Stability Amid Fluctuations
Home prices in the Victoria region have experienced slight fluctuations over the past year, reflecting broader market trends and local dynamics. The MLS® Home Price Index (HPI) benchmark value for a single-family home in the Victoria Core was $1,296,100 in July 2024, marking a 2% decrease from $1,322,800 in July 2023. Interestingly, this value saw a marginal increase from June 2024’s value of $1,295,500, indicating that while there has been a year-over-year decline, prices may be stabilizing in the short term.
The condominium market has also seen slight price adjustments. The benchmark value for a condominium in the Victoria Core was $567,800 in July 2024, down 0.6% from $571,500 in July 2023. This small decrease from the previous year, along with the minute decline from June 2024’s value of $567,900, suggests that the market for condominiums is experiencing a period of slight price correction.
These modest declines in benchmark values suggest that the market is adjusting after several years of rapid price growth, particularly in the post-pandemic boom. While some may interpret these declines as a sign of a weakening market, they could also be seen as a stabilization, bringing prices to more sustainable levels. This is especially important in maintaining affordability and ensuring that the market remains accessible to a broad range of buyers.
Market Outlook: What’s Next for Victoria?
Looking ahead, the Victoria housing market is expected to continue its steady performance, though much will depend on broader economic factors and potential further government interventions. The slight fluctuations in inventory and prices suggest that the market is finding its footing after a period of significant growth and change.
Potential buyers and sellers should keep a close eye on inventory levels and government policies, as these will be key factors influencing the market in the coming months. For buyers, the current market offers opportunities to purchase properties at slightly reduced prices compared to last year, while sellers can take advantage of the stable demand and healthy inventory levels.
Conclusion: A Balanced Market for Both Buyers and Sellers
In conclusion, the Victoria housing market remains balanced and steady as we move through the summer of 2024. With consistent sales, slight inventory fluctuations, and modest price adjustments, the market is providing opportunities for both buyers and sellers. While government interventions and economic factors will continue to shape the landscape, the overall outlook remains positive. Those looking to buy or sell in this market should stay informed, seek professional advice, and be prepared to navigate the evolving conditions with confidence.
