MONTHLY MARKET UPDATE — MARCH 2021 EDITION
A
Monthly Sales Comparison Greater Victoria - (2019-2022)
1400
1200
Number of Sales
total of 718 properties sold in the Greater Victoria Area this past February. While this is approximately 17% fewer than the same period last year, it was approximately 51% increase in sales numbers from the previous month of January 2022. Additionally, the end of February saw 849 active listings for sale on the Victoria Real Estate Board MLS System. While this is a 35.6% decrease from the end of February 2021, it represents a welcome 14% increase from January of this year; a light at the end of the tunnel perhaps for a market that, these last several months, has been remarkably starved of inventory.
1000
718
800
600
400
200
This past week the Bank of Canada started gradually raising it’s interest rates signaling
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2019
329
421
640
696
848
740
706
661
616
619
577
402
2020
411
563
608
287
457
808
979
979
989
990
795
631
2021
646
863
1173
1116
1049
942
835
831
761
745
653
438
2022
474
718
Absorption Rate
6
5.3
5.1
Months of Inventory
Greater Victoria Area - (2019-2022)
5.7
4.7
5
4.7
4.6
4
4.2
5.6 5.2 4.3
4.1
4.0
3.9
4.0
4.2
4.3 4.0 3.7
3.5
3
2.8 2.4
2 1
2.2
1.8 1.5
1.4
1.4
1.3
1.3
1.3
1.3
1.4
1.6
2.0 1.6
1.3
1.2
1.1
December
November
October
2022
September
2021
August
July
2020
June
2019
May
April
March
February
January
0
1.9
that in response to elevated Canadian inflation it has begun adjusting upward to a target of 2%. The Bank of Canada expects inflation to remain close to 5% over the first half of 2022, before declining to 3% by the end of the year. Historically, Bank of Canada’s interest rate tightening has resulted in slower home sales and softer home prices. However, with markets so out-of-balance, it may take a substantial decline in demand and prices to return to a healthy, balanced state. The benchmark price for a single family home in February 2021 was $859,900 in the Greater Victoria Area. Over the past year, that benchmark price has climbed
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