The Neal Estate Team's Victoria Real Estate Update for December 2021

Historically low inventory continues to angle property sales in a downward direction in the Victoria real estate market. The region only saw 653 total property sales (17.9% less than November last year) and it is still clear that demand is at least greater than inventory if not still red hot.

While it is typical for this time of year for the market to slow down a bit we are still seeing frequent if not commonplace multiple-offer situations which indicates that buyers are less deterred by typical seasonal factors. There are also other indicators that the drop in sales is not purely seasonal.

Single family homes, for example, sold 18.6% less than the previous month with a total of 276 sales, but total listings decreased a whole 149 available units (14.4%) in the same time period. With only 887 listings available at the end of November (51.1% down from last year by the way) that 14% is more significant than it looks. Condo sales remained stronger, dropping only 5.2% from October.

With inventory so tight it is very good news to hear the provincial government not only placing restrictions on the demand side but also announcing initiatives to help ease the development and building process. Initiatives such as making it easier for proposals to go through, ones which already align with the Official Community Plan, as well as giving more power to municipal workers to approve minor variance permits certainly is a step in the right direction.

In the short term, as the powers that be, deal with the slow process of increasing housing stock, many sellers are choosing to wait till spring. While  spring is a popular and busy time for real estate it is somewhat of a misconception that it is the best time for listing a home. Especially with the market as it is , there are more than enough buyers for any homes that come onto the market in the remainder of 2021 or early 2022. Waiting longer could see an influx of listings giving more choice to buyers and could possibly see the effects of the government's new “cooling off period”.

As for house prices, the benchmark value for a single-family home in Victoria hit $1,122,600 in November 2021 a whole 24.2% more than the same month the previous year and 1.7% more than October. Condos increased by 15.6% year-over-year to hit $506,700.

The inventory situation has us firmly and for the near future in a seller's market but there are some early indicators that we might be seeing some market changes coming. If interest rates continue to creep up, as they have been doing the last few months, we could see some movement in the direction of a more balanced market or at least toward a period of price stagnation.

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