341 properties changed hands in January through the Multiple Listings Service (MLS), according to the Victoria Real Estate Board (VREB).

 

Sales jumped by 22.7% over last January, when 278 properties sold.

 

Single-family-homes generated the majority of transactions, with 162 purchases at an average price of $1,219,694 and a median of $1,047,450. The January, 2023 average settled higher at $1,233,152 and a median of $1,065,000.

 

Condominiums, meanwhile, generated 112 sales averaging $712,445 and reaching a $700,000 median. In January of last year, the average was $662,338 alongside a $620,000 median.

 

While the takeaway from the above market segments implies prices for single-family-homes are falling and prices for condominiums are rising, on the ground, however, Victoria realtor Marko Juras (see website) says pricing data is only part of the story and could lead market observers astray.

 

“The curious case of a falling average and median for single-family-homes, and the upwards push for condominiums when comparing this January to January of 2023, has created the impression that housing values are dropping and buyers are instead focusing on condominiums,” Juras says. “In reality, demand for houses in the $800,000 to $1.2 million range is insatiable and only held back by limited inventory, as condominiums are experiencing a difficult market period that is biased against downtown Victoria, the primary condominium node.”

 

Juras says condo listings in the downtown core are struggling to move as buyers set their sights on neighbourhoods and municipalities further afield, where condominium options have steadily increased over the last decade. 

 

“Downtown Victoria real-estate is having a difficult time at the moment, with high costs and social troubles that are giving some buyers pause, or encouraging them to explore alternative options,” Juras says. “As an example of what is going on, you’ll have woodframe condominiums in suburbs like View Royal selling for the same price point as a concrete condominium in Harris Green. It also doesn’t help price buoyancy when former downtown AirBnB listings are adding re-sale inventory at a time when listings are already spending lengthy periods on the market.”

 

Where single-family-homes are finding buyer resistance, Juras says, is in the luxury market at $2 million and higher. The $800,000 to $1.2 million price points are generating bidding wars, as higher interest rates push first-time buyers with deeper pockets to the entry rung of the ladder, while homeowners with equity are also competing for the lower quadrant as a way of avoiding high payments.

 

That being said, slow-but-steady townhomes averaged $712,445 and reached a $700,000 median across 36 sales in January, a jump over last year when the median was $620,000 and the average was $662,338.

 

Over the first 31 days of 2024, 2,140 listings were active on MLS, about equal to December, albeit a healthy boost compared to January, 2023 when only 1,739 properties were listed. New listings for the month jumped to 960 from December’s 383, also higher than last January’s 805.

 

Juras notes that the upcoming spring season, typically the busiest period for buying and sell real-estate, could see upwards price pressures on moderately priced houses as demand is likely to outstrip supply.

 

“Unless we see an inventory spike this spring, buyers are going to find themselves competing, once again, for desirable properties in a seller’s market. This typically equates with moderate price appreciation.” C

 

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