Victoria BC Real Estate Market Update: May 2024 with Top Realtor

June 10, 2024

As the spring season progresses, Victoria’s real estate market continues to show signs of stability and growth. In May 2024, a total of 763 properties were sold in the Victoria Real Estate Board region. This figure represents a slight decrease of 1.5% compared to the 775 properties sold in May 2023, but a significant 12.5% increase from April 2024. Let’s dive into the details to understand the current market dynamics better.

Market Performance Highlights

Sales Overview

  • Total Sales: 763 properties sold in May 2024.
  • Comparison to May 2023: A slight decrease of 1.5% from 775 properties.
  • Comparison to April 2024: A notable increase of 12.5%.

Property Type Analysis

  • Condominiums: Sales of condominiums were down by 5.2% from May 2023, with 235 units sold. This decline suggests a potential shift in buyer preference or market saturation in the condominium sector.
  • Single-Family Homes: Sales remained stable, matching the exact number from May 2023 with 399 units sold. The consistency in this segment indicates a steady demand for single-family homes, which continue to be a preferred choice for many buyers.

Expert Insights

“Spring is generally prime time for real estate in Victoria,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “And May is typically when we are at or near the peak of activity in our property market. This May was another stable month for both buyers and sellers. With more inventory on the market, consumers had more choice and could take time to make decisions and complete their due diligence. The additional listings also meant less pressure on pricing, so prices remained relatively flat.”

 

Inventory Levels

The increase in inventory has been a key factor in creating a balanced market. At the end of May 2024, there were 3,338 active listings for sale on the Victoria Real Estate Board Multiple Listing Service®. This represents a 10.6% increase compared to April 2024 and a substantial 52.5% increase from the 2,189 active listings at the end of May 2023. This influx of inventory provides buyers with more options and reduces the pressure on pricing.

Factors Contributing to Increased Inventory

  • New Developments: Recent completions of residential projects have added new units to the market, contributing to the rise in available properties.
  • Market Confidence: Sellers who had previously hesitated are now listing their properties, encouraged by the current market stability.
  • Seasonal Trends: Spring typically sees an uptick in listings as the weather improves and families prepare to move during the summer months.

Market Conditions

Chair Laurie Lidstone adds, “After so many years of consumers navigating an unbalanced market, it is positive for buyers and sellers to see some months of consistent balance. A lot of folks who have been watching the market over recent years may find that now is a good time to sell and buy as market conditions have changed for the better. Of course, as always, I recommend connecting with your favorite REALTOR® to create a strategy specific to your needs.”

Advantages of a Balanced Market

  • For Buyers: More choices mean buyers can take their time to find the perfect home without feeling rushed. The increased inventory also reduces the likelihood of bidding wars, leading to more stable prices.
  • For Sellers: Stable prices and consistent demand make it a favorable time to list properties. Sellers can expect fair market value for their homes without the extreme fluctuations seen in more volatile markets.

Pricing Trends

The Multiple Listing Service® Home Price Index (MLS® HPI) provides a benchmark for property values in the Victoria Core area. Here are the highlights:

  • Single-Family Homes: The benchmark value for a single-family home in May 2023 was $1,300,900. In May 2024, this value increased by 0.7% to $1,309,700, up from April’s value of $1,301,800. This slight increase reflects a stable yet appreciating market for single-family homes.
  • Condominiums: The benchmark value for a condominium in May 2023 was $562,900. This increased by 1.2% to $569,500 in May 2024, up from the April value of $561,200. The growth in condominium values indicates a sustained interest in this property type despite the slight decrease in sales volume.

Historical Context

To better understand the current market dynamics, it’s helpful to look at historical trends:

  • 2021 and 2022: The spring markets of these years were marked by extremely low inventory levels and high demand, driven by low interest rates and pandemic-related housing needs. These conditions created a highly competitive market with rapid price increases.
  • 2023: The market began to stabilize as interest rates rose, leading to a cooling effect. Inventory levels started to recover, providing more options for buyers and easing price pressures.

Strategic Advice for Buyers and Sellers

For Buyers:

  • Do Your Research: With more properties on the market, take the time to explore different neighborhoods and property types. Utilize online tools and resources to compare prices and features.
  • Get Pre-Approved: Secure a mortgage pre-approval to strengthen your position when making an offer. This shows sellers that you are a serious buyer and can expedite the closing process.
  • Work with a Realtor: A knowledgeable realtor can provide valuable insights, help you navigate the market, and negotiate the best deal.

For Sellers:

  • Prepare Your Home: Ensure your property is in top condition to attract potential buyers. Consider staging and making minor repairs or upgrades to enhance appeal.
  • Price Strategically: Set a competitive price based on current market trends and comparable properties. A well-priced home can attract more interest and lead to a quicker sale.
  • Market Effectively: Utilize professional photography, virtual tours, and online listings to reach a broader audience. Your realtor can also leverage their network to promote your property.

About the Victoria Real Estate Board

Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of REALTORS®. The Board represents 1,651 local Realtors and is dedicated to providing valuable insights and support to the real estate community.

Conclusion

May 2024 has been a stable month for Victoria’s real estate market, characterized by a balanced environment that benefits both buyers and sellers. With increased inventory and stable pricing, the market offers ample opportunities for those looking to make a move. If you’re considering buying or selling a home, now is a good time to connect with a local Realtor to develop a strategy tailored to your needs.

For detailed information on the Victoria and area housing market, reach out to your local Realtor today. As always, staying informed and working with a professional can make all the difference in navigating the complexities of the real estate market.

This update provides a comprehensive overview of the current market conditions and trends in Victoria, BC. For personalized advice and assistance in your real estate journey, feel free to contact me. Let’s make your real estate dreams a reality in the beautiful city of Victoria, BC.