Victoria Real Estate Market Analysis: A Reflective Look at 2023

January 9, 2024

As we turn the page on 2023 and step into the new year, it’s important to look back and analyze the trends and changes that shaped the Victoria Real Estate Market over the past twelve months. The real estate landscape has been a rollercoaster ride for the past few years, with 2023 providing a semblance of stability and predictability after a prolonged period of disruption. Let’s dive into the key statistics and insights that defined the Victoria Real Estate Market in 2023.

Year-End Sales: A Closer Look

December 2023 closed with a total of 329 properties sold in the Victoria Real Estate Board region. This number is slightly higher, by 2.8 per cent, than the 320 properties sold in December 2022. However, it represents a 16.5 per cent decrease from the sales figures in November 2023. This dip is consistent with the traditional seasonal patterns of the real estate market, where December often sees a slowdown in both sales and listings.

Condominiums and Single Family Homes: A Comparative Analysis

The sales of condominiums saw a significant rise, up by 14.9 per cent with 108 units sold compared to December 2022. This increase highlights the growing interest in more affordable, compact living spaces in urban areas. On the other hand, sales of single-family homes also saw an uptick, albeit a modest one at 1.3 per cent, with 158 units sold. This continued interest in single-family homes underlines a consistent demand for traditional housing options.

2023: A Year in Review

The total sales for 2023 summed up to 6,207 properties, marking an 8.77 per cent decrease from the 6,804 properties sold in 2022. This reduction reflects the market’s adjustment and stabilization after years of unprecedented growth and activity.

Market Insights from Victoria Real Estate Board Chair Graden Sol

Graden Sol, the 2023 Chair of the Victoria Real Estate Board, pointed out the market’s return to traditional seasonal patterns. “This is a welcome relief for sellers and buyers after an extraordinary five years of real estate market disruption,” he stated. The predictability of the market is not only a positive sign for current stakeholders but also for prospective buyers and sellers who can now plan their real estate ventures with more certainty.

December Listings and the Impact of Interest Rates

At the end of December 2023, there were 2,132 active listings on the Victoria Real Estate Board Multiple Listing Service®, a decrease of 19.4 per cent compared to November. However, this figure represents a 26.3 per cent increase from the 1,688 active listings at the end of December 2022. This rise in listings indicates a gradual move towards a more balanced market.

Chair Sol emphasized the significant impact of interest rates on the housing market in 2023. The increased cost of borrowing money led to reduced purchasing power among consumers, resulting in fewer transactions. Despite this, there remains a strong demand for housing in the region.

Moving Forward: The Focus on Housing Supply

Looking ahead, the creation of new housing supply remains a critical focus. “The only way to moderate housing prices is to bring supply closer to meeting demand,” Sol advises. As market activity potentially increases in 2024, ensuring a sufficient supply of housing is essential to prevent rapid price increases.

Home Price Index Benchmark Values

The Multiple Listing Service® Home Price Index (MLS® HPI) benchmark value for a single-family home in the Victoria Core was $1,236,500 in December 2022. This value rose by 2.5 per cent to $1,268,000 in December 2023, although it was slightly down from November’s value. The benchmark value for condominiums in the Victoria Core area decreased by 0.7 per cent to $562,000 in December 2023, from $565,800 in December 2022.

Embracing a Predictable Market

The Victoria Real Estate Market in 2023 reflected a much-needed return to predictability and traditional patterns. This shift is vital for both current and future participants in the real estate market. As we move into 2024, the focus will be on balancing supply with demand, navigating the implications of interest rates, and leveraging the expertise of local realtors to navigate the complexities of buying and selling properties. With a more predictable market, stakeholders can make informed decisions, leading to a healthier and more sustainable real estate environment in Victoria.