Victoria Market Overview - Last month we talked about increased “pre-data” activity and anecdotal evidence of both buyers and sellers returning to the market. By the end of February, the numbers caught up and reported significant increases in sales from January although not enough to rival February 2022 when the market was stronger overall. Some of this activity is simply seasonality as we head into what is traditionally the busiest time in Real Estate.

Somewhat more interesting is that inventory posted very small gains from January which created a wild swing in “months of inventory” (MOI) which is a tool for gauging if a market is a buyer or seller market. As we have said in almost every update for the last six months, the market is currently very

Bank of Canada Interest Rate Announcement -
March 8, 2023

As signalled in its previous interest rate announcement, The Bank of Canada maintained its overnight rate at 4.5 per cent this morning. In the statement accompanying the decision, the Bank noted that restrictive monetary policy is weighing on demand and it expects weak economic growth for the next couple of quarters. That weak growth should moderate wage growth in a currently tight labour market and ease competitive pressures on prices, ultimately leading to inflation reaching 3 per cent by the middle of 2023.  As for the possibility of future rate increases, the Bank stated that it will continue to assess economic developments and the impact of past interest rate increases and is prepared

Vancouver Island Real Estate - In January 2023, Vancouver Island saw 521 property sales, with the Vancouver Island Real Estate Board Area (VIREB) reporting 243 and the Victoria Real Estate Board Area (VREB) reporting 278. Of the VIREB sales, 165 were single-family homes, 42 were condos, and 32 were townhomes. For further details on the VREB numbers, please refer to our full Victoria report by clicking HERE.

Inventory saw a year-over-year increase, with 861 single-family homes listed in January compared to 257 one year ago, although listings dropped by 4% from the month prior. Similarly, condo

Victoria Market Overview - January was theoretically one of the slowest months for real estate sales in Victoria on record. I say theoretically because although the numbers were low the pre-number activity (calls, showings, and offers) was busy, especially in the second half of January and so far in February. Talk around the brokerage water cooler says this isn’t just our group. Almost everyone at RE/MAX Generation is busy fielding calls, updating their clients, and booking showings. Inventory is up and the coming soon hopper is bursting. 

The central bank is indicating that we have passed the time for big jumps and that interest rates will remain somewhat more stable for the time being. Affordability, meaning how much buyers are actually paying

Canadian Housing Starts (December 2022) - January 17, 2023

Canadian housing starts declined 5.5 per cent to 248,625 units in December at a seasonally-adjusted annual rate (SAAR). Starts were up 1.4 per cent from December of 2021. Single-detached housing starts fell 10.4 per cent to 58.5k, while multi-family and others fell 3.9 per cent to 190.1k (SAAR). 

In British Columbia, starts rose by 20.7 per cent in December to 58.6k units SAAR in all areas of the province. In areas in the province with 10,000 or more residents, single-detached starts rose 2.7 per cent m/m to 7.2k units while multi-family starts rose 25.1 per cent to 47.4k units. Starts in the province were 5 per cent above the levels from December 2021. Starts were up by 10k in

Canadian Inflation (December 2022) - January 17, 2023

Canadian prices, as measured by the Consumer Price Index (CPI), rose 6.3 per cent on a year-over-year basis in December, a decrease from the 6.8 per cent rate in November. Falling gasoline (-13.1 per cent month on month) and fuel oil prices drove the decline, while softening costs for durable goods such as furniture and used vehicles also slowed price appreciation. Rising interest rates contributed to an increase in mortgage interest costs, which were up 18 per cent year-over-year as Canadians renewed or initiated higher-rate mortgages. In contrast, the Homeowner's Replacement Cost, which tracks home prices, continued to slow, pushing the CPI downwards. Month-over-month, on a

Vancouver Island Real Estate - In December 2022, a total of 612 properties were sold on Vancouver Island, with 262 sales reported by the VIREB and 350 by the VREB. Of the VIREB figures, 200 were single-family homes, 35 were condos, and 27 were townhomes. For further details on the VREB numbers, please refer to our full Victoria report by clicking HERE.

Last month, there were 895 active listings of single-family detached properties, a 25% decrease from the previous month but a whole 299% increase from the 223 available one year ago. Condo listings numbered 248, a 13% drop from November but a 268%

Victoria Market Overview - As we marked the start of a new year, we took the opportunity to look back at Victoria Real Estate’s journey in 2022. The year began with record-low inventory, high sales, and rising prices; however, lending rates increased in response to inflation fears and prospective buyers paused as affordability became a greater challenge. Home Price Index Benchmark prices peaked in June, but by the end of the year, single-family homes in the core had declined 12.3%, bringing them back to their December 2021-January 2022 Benchmark prices. Although the market is showing signs of a more balanced market, inventory is still low and the lack of buyer participation is keeping it that way. If buyers return in force, the market could quickly

Canadian Housing Starts (November 2022) - December 15, 2022

The Canadian economy contracted 8.2 percent at a quarterly annualized rate in the first quarter, including a 7.2 percent decline in March following the paralysis of economic activity brought on by the COVID-19 pandemic. Household spending fell 2.3 percent, the steepest drop ever recorded, while exports were down 3 percent and government spending fell 1 percent due to school closures and government curtailments.  Total housing investment was down 0.1 percent, with both renovation spending and ownership transfer costs falling. New home construction, however, rose 1.6 percent.

As dramatic as the first quarter decline appears, it will almost certainly be overshadowed by the

Vancouver Island Real Estate - In November 2022, a total of 746 properties were sold throughout Vancouver Island, across both the Victoria and Vancouver Island Real Estate Boards (VREB and VIREB). Of the 362 sales reported by the VIREB, 244 of these were single-family homes, 54 were condos, and 64 were townhomes. For more information on the VREB numbers, please click HERE to read our full report.

Last month, there were 1,195 active listings of single-family detached properties, compared to 1,360 in October and 301 in November 2021. The inventory of condos was 286 units, up from 64 one a year ago,