Monthly Market Intelligence - September 2023 Edition

September 2023

SUMMER FINISHED ABOVE EXPECTATIONS

The start of our August 2023 real estate market reflected what we typically see in our late summer housing market; summer travel in full swing as buyers and Sellers head to the beach, the mountains and destinations abroad. However, the last 2 weeks of August ramped up significantly with showing activity leading to sales. We feel this brisk pace will probably continue into the fall as consumers return to regular work days and kids are back in school.

Bank of Canada (BoC) held interest rates at 5% signalling the potential end to historic rate hikes. Money markets are pricing in very strong odds that the BoC is done with hiking rates for this economic cycle. We expect this interest rate hold to be a positive signal to our real estate market and should shore up and strengthen consumer confidence.

The “Missing Middle” — we believe that all levels of government need to focus on opening up more supply. Single family detached homes are our highest priced product, which has pushed to the sideline’s buyers who need housing at a more attainable price point. We are seeing the need for townhouses grow in every demographic as this product appeals to the masses, whether it be first-time buyers, those up-sizing from a condo or downsizing from an executive home. We feel townhomes will be in high demand in the future.

Our local Victoria real estate market continues to display resilience and adaptability in the face of changing economic conditions. August 2023 witnessed 544 properties being sold in the Victoria Real Estate Board region, marking a notable increase of 13.8 percent compared to the same month in 2022. This surge in sales activity suggests a growing interest among buyers, and a strong local economy. However, this figure represents an 8.6 percent decrease from July 2023, showing a potential seasonality factor or a short-term fluctuation in demand.

Among the various property types, condominiums and single-family homes both contributed to the market’s positive performance. Condominium sales saw a substantial increase of 10.8 percent compared to August 2022, with 164 units changing hands. Similarly, single-family homes experienced a healthy uptick in sales, rising by 9.6 percent from the previous year, with 273 homes being sold. These figures suggest that both first-time buyers and families are actively taking

Absorption Rate

part in the Victoria real estate market, leading to a balanced demand across multiple property types.

On the supply side, there were 2,490 active listings available for sale on the Victoria Real Estate Board MLS System at the end of August 2023. This represents a moderate increase of 2.9 percent compared to the previous month of July, reflecting a steady yet not impactful flow of new listings. Despite this, there is a substantial 16.5 percent increase from the inventory levels recorded at the end of August 2022, showing a healthier supply of properties in the market year on year. This uptick in supply, with stable interest rates, should provide potential buyers with more options and possibly contribute to a more balanced market in the coming months.

Number of Sales

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We have made the decision that this will be the final monthly edition of the Market Intelligence. We will instead bemoving to a Quarterly publication schedule. This decision comes as we will be able to provide you a better and more thorough understanding of trends and themes in our market. We feel a quarterly report will allow us to provide you with a deeper dive into the data, giving you with a better overall report. Look for our first Quarterly Market Intelligence at the beginning of October.

We would also like to take this opportunity to express gratitude to our clients for choosing Stockus & Parry as the top option for Realtors and The Agency as the leading Brokerage in the Peninsula News Review Reader Choice awards!

This recognition means the world to us, especially as we are celebrating our first year as partners in business. We extend our heartfelt gratitude to the community for their support, trust, and confidence in our team. Our goal is to provide seasoned and exceptional service. We are truly overjoyed and humbled by this honour, and we look forward to continuing to serve our community with the same level of passion and excellence in the years to come. Thank you from the bottom of our hearts.