Holmes Realty December 2023 Market Update

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MONTHLY MARKET UPDATE — DECEMBER 2023 UPDATE

n December, the Victoria Real Estate Board saw a total of 329 properties changing hands, marking a 2.8% increase from December 2022 when 320 properties were sold. However this reflected a 16.5% decline from the sales recorded in November 2023.

The condominium market exhibited a notable rise of 14.9% from December 2022 with the sale of 108 units, while singlefamilyhome sales increased by 1.3% from the same period, totaling 158 sold.

Throughout 2023, a total of 6,207 properties were sold in the Victoria Real Estate Board region, which was 8.77% lower compared to the 6,804 properties sold in 2022.

Graden Sol, Chair of the 2023 Victoria Real Estate Board, highlighted the market's return to traditional seasonal patterns. Sol expressed relief for both sellers and buyers after a period of unusual real estate market upheavals spanning

2481 BEACON AVENUE SIDNEY BC V8L1X9 | 1-877-656-0911 REACHUS@HOLMESREALTY.COM | WWW.HOLMESREALTY.COM When you buy or sell a home with Holmes Realty, a portion of the commission goes in support of local charities. Over $250,000 raised!

five years. He emphasized the benefit of a more predictable market and anticipated a continuation of this trend into 2024. The expected rhythm of seasonal trends could lead to increased inventory in the initial months of the year, subsequently boosting sales as consumers gear up for the spring market. December, in line with seasonal norms, was relatively sluggish in terms of both sales and new listings. At the close of December 2023, there were 2,132 active listings for sale on the Victoria Real Estate Board Multiple Listing Service®. This marked a 19.4% decrease from November but a significant 26.3% increase from December 2022 when there were 1,688 active listings.

Chair Sol also pointed out that the housing market's major influencer in 2023 was interest rates.

Increased borrowing costs led to reduced purchasing power among consumers, resulting in a decline in transactions. Despite this, the

2481 BEACON AVENUE SIDNEY BC V8L1X9 | 1-877-656-0911 REACHUS@HOLMESREALTY.COM | WWW.HOLMESREALTY.COM When you buy or sell a home with Holmes Realty, a portion of the commission goes in support of local charities. Over $250,000 raised!

market continued to show substantial demand for housing.

Looking ahead to 2024 and beyond, the focus needs to be on generating new supply to match increasing market activity and prevent rapid price escalations.

Balancing supply and demand remains crucial in moderating housing prices.

The Multiple Listing Service® Home Price Index illustrated that the benchmark value for a singlefamily home in the Victoria Core

increased by 2.5% from December 2022 to December 2023, reaching $1,268,000. On the other hand, the benchmark value for a condominium in the same area decreased by 0.7% from November 2023 to December 2023, resting at $562,000, compared to $565,800 in December 2022.

2481 BEACON AVENUE SIDNEY BC V8L1X9 | 1-877-656-0911 REACHUS@HOLMESREALTY.COM | WWW.HOLMESREALTY.COM When you buy or sell a home with Holmes Realty, a portion of the commission goes in support of local charities. Over $250,000 raised!