The Neal Estate Team's Real Estate Market Update for Victoria for January 2022

This December marked the end of the whirlwind year which was 2021. It was a year that, in terms of Real Estate, was chock-full of overwhelming demand from buyers, an ever-dwindling inventory, and of course, consistent but substantial increases in home prices. 

Last year has left people feeling many different things in regard to the real estate market. For some, it was a time to cash out at all-time highs, for others it was time to get in at rock bottom interest rates, and for those who had to write 15 offers before getting one accepted, it was a time of great frustration. 

Yet ahead lies more uncertainty, both with the Real Estate market and society at large. 

December itself saw a 30.6% decrease in properties sold from November 2021 to the last month of 2021 for a total sales number of 438 units. Of those 438 units, 207 were single-family homes and 152 were condos. Single-family homes decreased 34.1% annually and condos were down 22.1% in the same time period.

Inventory tightened further by -26.5% from November 2021 to December 2021 with the total number of available listings coming in at 652 (which is 49% down from December the end of last year). Inventory hasn’t reached these lows in the last 25 years.

Benchmark home prices for a single-family home in the Victoria real estate area hit $1,144,900 which is up from the previous month's benchmark price of $1,122,600 and a total increase annually of 25.1%.  Condos, which have lagged behind in regards to price increases saw a 17.1% increase annually reaching $570,600.

There were 10,052 sales in the entirety of 2021 with 72% of those buyers coming from people already living in Victoria and 11% from the lower mainland. With inventory conditions so tight, Victoria and the rest of Vancouver Island will find it hard to cool down if the Vancouver market remains hot. 

Looking forward to the rest of 2022 we know in the short term that inventory is still too tight for the momentum of 2021 to be changed in any substantial way. That being said, many forecasters and economists are predicting a levelling out of price increases after the first quarter and a decrease in sales volume overall. There are many factors that could have a substantial impact, such as the new “cooling-off period”, not to mention any other government initiatives that may be forthcoming (housing prices are very much on the governments' radar on all levels), interest rate changes, or just good old fashioned running out of buyers on the demand side. 

Last year was an exciting year for The Neal Estate Group. A major highlight for us was the tremendous appreciation we received from our happy clients which put us in the Top 50 Teams In Canada (RankMyAgent) and the top-rated and most reviewed Real Estate organization in Victoria on Google (just ask Siri to “call the best realtor in Victoria”). Whatever 2022 may hold, we are looking forward to getting the absolute best for our clients and being there for them to help navigate their purchase or sale, just as we have been doing for the last 30+ years.

If you would like to know how we are beating the market, helping our clients win, and keeping people moving safely, please call or text 250-386-1818 or simply click Here for a FREE consultation. Find new listings before they get to MLS and ask us about featuring your home on VictoriaComingSoonListings.com, where we generate interest while you're getting ready to come to market. Ask us also about our FREE Staging Consultation for advice on preparing your home in its best light for the market, ensuring you the best results.  

Stay safe,

The Neal Estate Team
Your Victoria & Vancouver Island Real Estate Experts
“Let our experience be your guide
www.RonNeal.com
www.HomesOnVancouverIsland.ca