Victoria's 2023 real-estate market produced a less spectacular showing than in years prior. Despite headwinds, prices remained relatively stable, due largely to a lack of re-sale inventory Citified.ca
2023 a stable year for Victoria real-estate, with house prices averaging $1.29M, and $5.9 billion in sales
Mike Kozakowski, Citified.ca
Published January 3, 2024
Victoria real-estate prices fell in 2023 compared to 2022, as active listings increased and home sales dipped year over year, according to the latest data from the Victoria Real Estate Board.
The annual average price paid for a single-family-home on the Multiple Listings Service (MLS) was $1,288,448 in 2023 over 3,005 sales, a 3.41% decline from 2022’s $1,333,869 average over 3,264 sales. The median was $1,150,000 in 2023, slightly below 2022’s $1,180,000.
Condominiums saw a 2.2% average price decline to $628,676 in 2023 over 2,042 sales from 2022’s $642,826 average over 2,276 sales. The medians were $550,000 and $580,000, respectively.
The townhome market segment had the largest drop of 7.08%, at an $805,619 average over 742 sales compared to $867,002 a year ago, between 760 sales. The medians were $765,000 and $807,000, respectively.
“2023’s lower prices and lower sales come as no surprise given the rising interest rates throughout the year. However, the fact that prices stayed as buoyed as they did, and that sales remained relatively close to 2022’s activity, is a testament to how much demand and resiliency there is for residential real-estate in Victoria,” said Victoria realtor Marko Juras (see website).
Juras also notes the relatively stability of active listings, which came in below expectations of large increases in a market undergoing broader pressures that typically correlate with more properties available for sale, and therefore more pressure on sellers.
“Sellers maintained their asking prices for much of the year due to a fairly balanced market as a result of a 10 year average in new listings,” Juras said. “Throughout the year, 12,308 listings appeared on MLS, even fewer than the already low volume in 2022, when 12,500 properties were listed for sale. For comparison, in 2008 there were more than 15,600 properties for sale.”
2022 market recap: Read last year's annual recap here
Total revenues from 6,207 MLS-listed property sales reached $5.9 billion. Last year the sum was markedly higher, at $6.8 billion, itself a far cry from the all-time high from 2021 of just under $9 billion. Sales in 2022 and 2021 were 6,804 and 10,052, respectively. And despite the reduction in property sales, new real-estate brokerages continue to enter the marketplace in Victoria based on the Island's healthy long-term outlook.
As for December, the month generated a $1,277,575 average for single-family homes over 158 sales, with a median of $1,065,000. November saw an average of $1,217,853 at a $1,086,500 median.
Condominiums tumbled to the lowest average of 2023, at $556,293 over 108 sales, and a $525,000 median. November’s average was $600,921 at a median of $522,500.
Townhomes accounted for only 39 sales at a $734,172 average and a $712,500 median. In November, the average was $855,020 and the median was $847,000.
In total, December’s MLS sales numbered 329, including commercial sales and manufactured home sales. Last December had activity of 320 sales.
New listings reached 383 units, and totalled 2,132 active listings.
Looking towards the 2024 real-estate market, Juras says the potential drop in interest rates going forward and sustained demand for Victoria homes in 2023 could indicate a stronger year is in-store, provided no major external factors impact demand.
“We know with interest rates, the only reasonable direction they can go at this point, should they change in the near future, is down. In fact, rates should have dropped in the fall given their long-time correlation with federal bond rates, which fell in the fall while five-year mortgage rates lingered at their recent all-time highs,” Juras said.
“We are also likely to see people who held off buying in 2023 entering the market, and as wages rise, so too will affordability. The big question remains, though, will there be enough supply? Barring any other major inputs, if demand rises, and supply remains slow, we can assume that will put greater pressure on prices. If we see more supply, the market should balance out and prices will stabilize.” C
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Article resources
- View Marko Juras' website here
- Stay up-to-date on the latest Victoria real-estate news and updates with VibrantVictoria
- The latest Victoria Real Estate Board stats are discussed here
- Looking for a new-build home or commercial space in Victoria? Use Citified to research new-build condos, rentals and commercial spaces
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