Balance In The Market Leads To Price Stability And Increased Confidence For Movement

Market Snapshot June 2024 by Andy McGhee

Hello to all my cherished clients, colleagues, friends, and family. Welcome to my Victoria, BC, monthly real estate market update for June 2024. 

Sales Overview

In May 2024, the Victoria Real Estate Board region saw a total of 763 properties sold. This figure represents a slight decrease of 1.5% compared to the 775 properties sold in May 2023. However, it’s worth noting a significant 12.5% increase in sales from April 2024. 

When we break down these numbers, sales of condominiums were down by 5.2% year-over-year, with 235 units sold. On the other hand, sales of single-family homes remained stable, matching last May’s total of 399 homes sold.

Market Activity and Trends

“Spring is generally prime time for real estate in Victoria,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “And May is typically when we are at or near the peak of activity in our property market. This May was another stable month for both buyers and sellers. With more inventory on the market, consumers had more choices and could take time to make decisions and complete their due diligence. The additional listings also meant less pressure on pricing, so prices remained relatively flat.”

By the end of May 2024, there were 3,338 active listings on the Victoria Real Estate Board Multiple Listing Service® (MLS®). This marks a 10.6% increase compared to April and a substantial 52.5% increase from the 2,189 active listings at the end of May 2023.

Chair Lidstone further commented, “After so many years of consumers navigating an unbalanced market, it is positive for buyers and sellers to see some months of consistent balance. Many folks who have been watching the market over recent years may find that now is a good time to sell and buy, as market conditions have changed for the better. Of course, as always, I recommend connecting with your favourite REALTOR® to create a strategy specific to your needs.”

Home Prices

Let’s examine home prices. The Multiple Listing Service® Home Price Index (MLS® HPI) benchmark value, which measures the typical value of homes in a given area, for a single-family home in the Victoria Core was $1,300,900 in May 2023. In May 2024, this value increased by 0.7% to $1,309,700, up slightly from April’s value of $1,301,800.

For condominiums, the MLS® HPI benchmark value in the Victoria Core was $562,900 in May 2023. This value rose by 1.2% to $569,500 in May 2024, up from April’s value of $561,200.

Pros and Cons of a More Balanced Market

For Buyers:

Pros:

- More Choices: With increased inventory, buyers have more options to choose from, making it easier to find a property that meets their needs.

- Time for Due Diligence: The slower pace means buyers can take their time to thoroughly inspect properties and make informed decisions without the pressure of a frenzied market.

- Stable Prices: Less competition can lead to more stable prices, which may prevent bidding wars and potentially lower costs.

Cons:

- Slightly Higher Prices: Although the market is more balanced, prices have seen slight increases. Buyers need to be aware of this and plan their budgets accordingly.

- Market Timing: Buyers may hesitate, thinking prices could drop further or stabilize more, leading to potential missed opportunities.

For Sellers:

Pros:

- Less Pressure: Sellers can take their time to find the right buyer without the pressure of rapid sales or multiple offers.

- Strategic Selling: With a balanced market, sellers can better plan their sales and potentially wait for more favourable conditions or buyers. This could involve timing the sale to coincide with a peak in demand, making strategic improvements to the property to increase its value, or negotiating with potential buyers to secure a higher selling price.

- Market Appeal: Stable market conditions may attract more buyers who were previously hesitant, increasing the pool of potential buyers.

Cons:

- Increased Competition: More listings mean more competition, which can make it harder to sell quickly or at a premium price.

- Price Stability: While stable prices are good for the market overall, sellers hoping for high returns may find it challenging to achieve their desired price.

 Conclusion

May has been a month of stability and opportunity in the Victoria real estate market. With more inventory available, buyers have a better chance to find their ideal property, and sellers can benefit from a balanced market. If you’re considering buying or selling, now might be an excellent time to make your move. Remember, your REALTOR® is there to guide you and develop a strategy tailored to your unique needs, ensuring you make the most of this balanced market.

Stay tuned for more updates, and feel free to reach out if you have any questions or need assistance with your real estate needs.

Best regards,  

Andy McGhee  

RE/MAX Generation - The Neal Estate Group