The average sale price in the Victoria housing market increased by 0.8 per cent between 2022 and 2023 (from $953,457 in 2022 to $961,322 in 2023), while the number of sales decreased by 10.1 per cent (from 6,100 in 2022 5,484 in 2023). Victoria is currently a balanced market, but it’s likely to transition to buyer’s conditions in 2024. rising inventory levels presenting more choice and selection for homebuyers. In 2024, Victoria is anticipating a two-per-cent decrease in average residential prices. Prices are expected to soften in the first half of 2024, but level-out in the second half. Number of sales transactions are expected remain the same.
The top three neighbourhoods likely to be the most desirable in Victoria next year are Saanich East, Westshore (Langford/Colwood), and Downtown Victoria. When it comes to liveability, top trends include affordable homes with secondary accommodations; access to parks, amenities, and homeowners’ place-of-work (including in-home remote work set-up); and single-detached homes are expected to see the most demand.
Trends in new construction are concerning indicators about the future of the market in Victoria. For example, several sites in the Westshore have halted before groundbreaking and some shovel-ready sites becoming available for resale.
“There’s a mix of three factors impacting our market right now: continued demand from interprovincial migration, lack of pre-existing inventory, and rising interest rates, which have primarily affected first time buyers and investors,” says Tony Joe, Broker/Owner, RE/MAX Island Properties (Victoria). “Fortunately, when it comes to inventory, the province has announced new regulatory changes intended to abolish short-term vacation rentals. These changes could help grow our inventory of furnished downtown condos and potentially cause a short-term abundance of supply and soften condo prices because of increased competition. Most importantly, with fewer short-term condo rentals, we could see more opportunities for first time buyers or long-term investors.”
- Victoria is likely to shift from a balanced market to buyer’s in 2024.
- Single-detached homes are likely to see the greatest demand in 2024.
- Buyers Toronto and Vancouver are driving the luxury market while move-up buyers from these cities are putting further pressure on the city’s supply.
- Trends in new builds include energy efficient buildings/homes, EV charging capabilities and workspace or home office.
- First-time homebuyers in Victoria are looking for homes with rental suites to add an extra layer of income; however, this generally requires assistance on the downpayment from family.
- Lawyers have reported an increase in co-ownership agreements, likely to combat decreased affordability.
- Buyers in ‘wait-and-see’ mode due to rising interest rates has reduced showings/open houses, and multiple offers/bidding wards and increased days on market.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Forward looking statements
This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.