Victoria BC Real Estate Market Update for March 2023

The real estate market in Victoria, BC, saw an increase in sales in March 2023 as consumer confidence and growing demand continued to drive the market. A total of 590 properties were sold, a 28.3% increase from February 2023. Although the number of properties sold was lower than in March 2022, which saw 833 properties sold, it was still a positive sign for the market.

Sales of single-family homes decreased by 31.8%, while condominium sales decreased by 29.4% compared to March 2022. However, the market saw an increase in sales from January, which indicates that the market is gaining momentum as spring approaches.

According to Victoria Real Estate Board Chair Graden Sol, "Demand is recovering. Compared to the end of 2022, prices have firmed up, and interest rates have become normalized. Consumers are more active, and we are seeing quite a few multiple offers on well-priced properties."

Despite the increase in demand, the inventory of available properties remains low. At the end of March 2023, there were only 1,970 active listings for sale on the Victoria Real Estate Board Multiple Listing Service®. This represents an 85.3% increase from the same period in 2022, but still lower than the long-term average.

Sol added, "As our spring market continues to strengthen, we may start to experience some upward pressure on pricing again. We have been talking about the need for supply to help moderate pricing for a long time." The recent announcement by Premier Eby about the provincial government's Homes for People action plan reflects an increasing awareness of the importance of supply and the need for all levels of government to focus on solving the housing crunch in the market.

The Multiple Listing Service® Home Price Index benchmark value for a single-family home in the Victoria Core area decreased by 10.9% from March 2022 to March 2023. The benchmark value for a condominium decreased by 9.1% during the same period. The MLS® HPI benchmark value for a single-family home in March 2023 was $1,236,200, and the benchmark value for a condominium was $560,300.

In conclusion, the early spring market in Victoria, BC, is reflecting consumer confidence and growing demand. Although sales were lower compared to March 2022, the market saw an increase in sales from January, which is a positive sign. However, the market still faces challenges with low inventory, and the need for supply to help moderate pricing remains a concern.

Please reach out to me with any questions you may have regarding your real estate goals. As always, I'm happy to meet you for a coffee to chat about your wants & needs regarding your timeline for buying, selling, and investing. I'm ready to move when you are!

'Helping You Find Your Way Home'

-Andy McGhee

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