Victoria Market Update / January 2024

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Market Update and Industry News

With 2024 now well underway, we want to start off by recapping the year that just passed, and discuss our outlook and predictions for the year ahead. It was an eventful year in the real estate market, and we are excited to share the highlights of the past year with you.


Year-End Overview:
For the entirety of 2023, a total of 6,207 properties were sold, representing an 8.77% decrease from the 6,804 sold in 2022. More importantly, this falls well short of the 10-year average of 8,052 units sold. Late in the year, we noticed the return to traditional seasonal patterns in the market, providing a welcome relief for both sellers and buyers after almost five years of market disruption. Interest rates played a significant role in shaping the housing market in 2023, impacting purchasing power and resulting in a continued drop in transactions. With demand remaining high even through a transitioning market, the focus on creating new housing supply to meet demand and moderate price increases has proven to be more important than ever. Locally, our government has taken what they feel are the right steps to address housing supply, although it is yet to be determined what result, if any, their policy decisions will result in.

Market Trends and Predictions:
There is renewed optimism for the health of the real estate market and we are anticipating more inventory for the remainder of January and February with an increase in sales as consumers prepare for the spring market. The market's return to seasonal trends is seen as a positive development, offering a more predictable landscape for all stakeholders. We witnessed another rate hold by the Bank of Canada this morning, the fourth consecutive hold by policy makers and we expect two further rate holds, with a potential decrease to the overnight rate as early as June. Some experts are predicting anywhere from 0.5 to 1.25% decrease in the prime lending rate over the course of the next 12 months. Inflation, and consumer spending activity will play a key role in the Bank of Canada's decision making.
We expect to see a slow and steady increase overall in the market this year, a seasonal bump in pricing this spring, with further increases throughout the summer if rates start to fall as expected. As long as inventory remains low, anywhere south of 3,000 total units, the market will continue to experience upward pressure.

Key Statistics:
Active listings at the end of December 2023 were 2,132, a 19.4% decrease from November but a 26.3% increase from December 2022. Notably, this is a fairly healthy number when compared to the 10-year average of 1,830 total units. The MLS® Home Price Index benchmark value for a single-family home in the Victoria Core increased by 2.5% to $1,268,000 in December 2023. Benchmark value for a condominium in the Victoria Core decreased by 0.7% to $562,000 in December 2023.

We thank you for being a part of the Victoria Real Estate Group audience and wish you a prosperous and joyful 2024!

Regards,


Riley Rebitt*
c 250.889.7245
e [email protected]
w www.sellingvictoria.com

*Personal Real Estate Corporation

Brent Snelling*
c 250.858.5755 
e [email protected]
w www.sellingvictoria.com

*Personal Real Estate Corporation

Exciting New Listings

3912 Braefoot Road
Cedar Hill, SE - Victoria BC
This very spacious 5 bedroom home offers nearly 3600 square feet of living space and sits on a 8,397 square foot lot with incredible potential. The bright main floor boasts custom stone work, walkout access to the backyard, and two wood burning fireplaces.
Spacious kitchen, dining area, family room, den, and living room complete this impressive main floor. Three bedrooms upstairs including a very large primary suite with walk-in closets and 4-piece ensuite.
Click to view this property
110-866 Brock Avenue
Langford Proper, Victoria BC
Welcome to Casa Bella! One of Langford's preferred condo communities in a tranquil setting yet just minutes away from all that the rapidly expanding downtown Langford has to offer. Easy ground level access with elevated garden view balcony at the rear of the unit.
Large kitchen with wood cabinet doors, slow closing hardware, stone counters, mosaic backsplash and stainless appliances. Plenty of living space grounded by electric fireplace in the private living room with nice views out to the rear common area of the property. 

Click to view this property

Noteworthy Headlines

Rental apartments, townhomes and commercial space proposed for Saanichton's Lochside Drive

Starlight Developments is seeking approvals for 143 units of rental housing along the 7800-block of Lochside Drive at Mount Newton Cross Road in Central Saanich's Saanichton area.

The proposal calls for developing excess land at 7840 Lochside Drive and 2530 Mount Newton Cross Road, where Starlight owns and operates 126 apartments in a duo of three-storey buildings.
 
In a six-storey massing, Starlight has proposed a 131-unit rental block on present-day surface parking at the rear of 7840 Lochside Drive, overlooking Highway 17. An underground parkade would service the new-build, comprised of studio through three-bedroom layouts.
 
Along the Lochside Drive frontages of 7840 Lochside Drive and 2530 Mount Newton Cross Road, Starlight has envisioned 12 units of three-storey townhomes, along with an amenity building, and a commercial building at the northeast corner of the property adjacent to the Marigold Lands development.
 
The townhomes are planned for what is currently a large lawn fronting two three-storey apartments.

Continue Reading


Selling Victoria Real Estate Group
Macdonald Realty Victoria

[email protected]
[email protected]
www.sellingvictoria.com

 
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