Monthly Market Update
A look at the most recent real estate statistics proudly presented by
with home sales and the latest statistics in the Victoria area market.
Monthly Market Update
November 2024
Overview of Sales Activity
Sales in Greater Victoria saw a notable increase in October 2024 compared to the previous year. However, it's important to recognize that October 2023 had the fewest recorded sales for that month since 2008. This low baseline skews year-over-year comparisons, with last month’s sales actually aligning closely with the ten-year average for October. Although sales have risen monthover-month, this signals a return to more typical, balanced market conditions for this season rather than an indication of heightened demand. Notably, this marked the largest September-to-October sales increase since 2000, effectively aligning sales with usual October levels, a milestone not seen since April 2022.
Active Listings and Market Balance
The Victoria Real Estate Board's Multiple Listing Service® reported 3,161 active listings at the end of October 2024. This represents a 6% decrease from September but a 14.7% increase compared to October 2023, which had 2,756 active listings. The consistent number of homes available has contributed to a balanced market, providing buyers and sellers with a more comfortable environment to negotiate and make informed decisions, as multiple-offer situations are less common and there is more time for contemplation.
Impact of Interest Rates
The Bank of Canada’s recent interest rate drops may be influencing buyer and seller activity. These reductions likely encouraged additional market participation and could sustain activity as the region heads into November, traditionally a period when the market slows. The ongoing rate changes have fostered a more balanced environment, creating opportunities for both buyers and sellers to work towards favorable agreements.
Home Price Index and Property Values
The MLS® Home Price Index benchmark for a single-family home in the Victoria Core was valued at $1,300,200 in October 2024, reflecting a slight decrease of 0.8% compared to October 2023’s benchmark value of $1,310,100. However, this is an increase from September’s benchmark of $1,279,700, indicating some positive monthly movement in single-family home values.
Conversely, condominium prices in the Victoria Core have seen a more pronounced decline. The MLS® HPI benchmark value for a condominium in October 2024 was $547,800, a 5.4% decrease from October 2023’s benchmark of $578,800. The October benchmark is also lower than the September value of $553,400, indicating a downward trend for condominium values in the region.With the introduction of longer amortization periods, a higher insured mortgage cap, and more inventory, buyers now have more flexibility and a greater opportunity to achieve their homeownership goals.
Looking Ahead
With potential rate changes and the approach of the winter lull, the market may experience further shifts. It will be interesting to see what effects the American election will have on Canadian interest rates.
