Victoria Real Estate Sales Reflect Summer Trends in July 2023

Victoria's real estate market experienced a typical summer trend in July, with a total of 595 properties being sold in the Victoria Real Estate Board region. This marked a 16.7 percent increase from July 2022, when 510 properties were sold, but it also represented a 15.6 percent decrease compared to June 2023. The sales of condominiums saw a positive surge, with 200 units sold, marking a 16.3 percent increase from July 2022. Additionally, sales of single-family homes also rose by 15.4 percent compared to July 2022, with 293 homes sold.

Chair Graden Sol of the Victoria Real Estate Board commented on the market's performance, saying, "The July numbers reaffirm the seasonal patterns we typically observe, with a slowdown in activity as the summer season sets in. This decline in activity is not unexpected and aligns with historical trends in our market."

As of the end of July 2023, there were 2,419 active listings for sale on the Victoria Real Estate Board Multiple Listing Service®, indicating a 3.3 percent increase from the previous month of June. Comparing it to July 2022, there was an 11.9 percent increase in active listings for sale.

Despite the sales slowdown, the market also saw an encouraging increase in inventory during July. This indicates a growing movement in the market, and consumers appear to be more willing to take action and make real estate moves. The higher inventory levels provide buyers with more choices and offer an advantage to sellers looking to make a property change. The typical summer market, with fewer active buyers due to vacationing, may result in less competition compared to previous months. However, well-priced properties continue to receive competing offers.

The Multiple Listing Service® Home Price Index shows changes in property values for the Victoria Core area. In July 2022, the benchmark value for a single-family home was $1,366,100, which decreased by 3.5 percent to $1,318,800 in July 2023. Compared to June's value of $1,310,100, the benchmark value saw an increase. For condominiums in the Victoria Core area, the benchmark value was $600,000 in July 2022, which decreased by 3.7 percent to $578,000 in July 2023. However, the value also increased from the June value of $573,800.

BC &Vancouver Real Estate Market Shows Resilience with Strong July 2023 Sales

Vancouver, BC – The pulse of Vancouver's real estate market remains steady as the British Columbia Real Estate Association (BCREA) releases its latest report on July 2023 sales. The data reveals encouraging figures, indicating both resilience and growth in the face of evolving economic conditions.

In a noteworthy surge, a total of 7,103 residential unit sales were documented in the Multiple Listing Service® (MLS®) systems for July 2023. This remarkable increase of 25.9 percent from July 2022 signifies a robust demand for homes, setting an optimistic tone for the real estate landscape.

One of the most eye-catching aspects of the report is the rise in the average MLS® residential price, which now stands at $967,948. This figure reflects a 5.6 percent ascent compared to the same period last year. The substantial total sales dollar volume of $6.9 billion paints a vivid picture of a thriving market, showcasing a remarkable 33 percent rise from the corresponding period in the previous year.

Brendon Ogmundson, the Chief Economist at BCREA, commented on the surge, stating, "Home sales are up significantly since this time last year." However, he also pointed out a potential dampening effect due to the recent Bank of Canada rate increases, causing mortgage rates to climb to levels not seen in over a decade. This brings an air of caution and highlights the delicate balance between demand and affordability.

While the active listings in the province remained relatively steady compared to July 2022, hovering just above 31,000, the market showed signs of adjustment. This upward trajectory in listings for the second consecutive month, coupled with a return to more normalized levels of new listings, suggests a potential stabilization in the market as sales moderate.

In contrast to the month's impressive performance, year-to-date BC residential sales dollar volume stood at $46.3 billion, registering a 20.9 percent decrease from the same period in 2022. Residential unit sales also dipped by 16.3 percent, reaching a total of 47,508 units. The average MLS® residential price followed suit, experiencing a minor dip of 5.4 percent, now resting at $975,232.

As we navigate through shifting economic conditions and evolving real estate dynamics, Vancouver's housing market demonstrates its adaptability and resilience. The July 2023 data reflects both the enduring appeal of homeownership and the influence of various factors on the market. Potential buyers and sellers are advised to stay attuned to these trends, seeking guidance from industry experts as they make informed decisions in this dynamic environment.

Andy McGhee