Victoria Real Estate Market Sees Summer Sales Surge Amidst Supply Challenges

August 2023 Victoria Real Estate Review

The Victoria Real Estate market witnessed an active August, with a total of 544 properties sold, marking a 13.8% increase compared to the same month last year and a slight 8.6% decrease from July 2023. This dynamic shift in sales activity was characterized by a surge in condominium and single-family home purchases, according to the Victoria Real Estate Board's latest report.

Condo Sales Soar

Condominium sales stood out, with a notable 10.8% increase from August 2022, totalling 164 units sold. This growth reflects changing preferences among buyers and a growing demand for more compact and affordable housing options.

Single-Family Homes in Demand

Sales of single-family homes also saw significant growth, rising by 9.6% compared to August 2022, with a total of 273 homes sold. This demonstrates that despite the allure of condos, many buyers are still keen on larger, standalone properties.

Supply Remains a Challenge

One of the persistent challenges in the Victoria housing market is the lack of supply. As of the end of August 2023, there were 2,490 active listings, a 2.9% increase from the previous month and a substantial 16.5% increase from August 2022. However, Sol emphasized that these inventory levels, while improved, are still insufficient to create a well-balanced market. He stressed the importance of increasing the supply of housing options, particularly middle-tier homes like townhouses and condos, which only accounted for 37.1% of listings.

Price Trends

The Multiple Listing Service® Home Price Index benchmark values provide further insights into the market. In August 2022, the benchmark value for a single-family home in the Victoria Core was $1,327,700. In August 2023, this value decreased slightly by 0.3% to $1,323,900, although it was up from July 2023. For condos, the benchmark value decreased by 0.3% from August 2022 to August 2023, settling at $582,000, also showing a slight increase from July.

Conclusion

Victoria's real estate market remains active, with strong condo and single-family home sales. However, the challenge of limited supply continues to drive prices and demand. As the market evolves, addressing the supply issue will be crucial in ensuring a balanced and sustainable housing market for both buyers and sellers in the region.