Victoria’s May real-estate sales via the Multiple Listings Service surpassed activity in May of 2022, representing the first monthly period to eclipse its previous year’s counterpart since June of 2021 surpassed June of 2020.

 

Victoria Real-Estate Board data shows 775 transactions were recorded in May, which outpaced May of 2022’s 761 sales, as average prices shot up across the board.

 

By market segment, single-family homes generated 399 sales at an average price of $1,297,552 and a median of $1,172,353. On the average front, the nearly $1.3 million figure is the highest since June of 2022’s $1,349,403. The median dipped compared to April’s $1,195,000. May’s 399 deals are the highest tally since April of 2022’s 403.

 

Condominiums settled at their strongest average since February of 2022, landing at $674,732 per unit (February of 2022 had an average of $678,862). The median for May was $560,000, the second highest for 2023 after March’s $569,500. 248 sales were recorded throughout the month and nearly tied for May of last year when 250 condominiums sold.

 

Despite a strong showing, not all condominiums are created equal as far as market demand and sales activity, according to Victoria realtor Marko Juras, who says some units are lingering and others are seeing multiple offers.

 

“The condominium market is hot right now, although not across the full spectrum of available inventory,” Juras says. “If you’re trying to sell a downtown Victoria studio or one-bedroom apartment, chances are you’ll have low traction. If you have a two-bedroom, two-bath unit for sale in periphery neighbourhoods or in the suburbs and your asking price is around $700,000, buyers will be lining up.”

 

Juras says the high interest rate environment has driven investors away from entry level condos, typically a primary target among small-time landlords, while owner-occupiers of studio and one-bedroom units are cautious about the downtown market where the prevalence of condominiums are situated. This has created a bump in inventory and downwards pressure is likely for sellers who must liquidate their holdings. Whether or not prices start to slide in June remains to be seen, however. 

 

May’s 84 townhome sales tied activity from last May, at an average purchase price of $853,470, second only to last June’s $930,226. The median was $785,000, toppling all months also since June.

 

Active listings remained suppressed in May, with the year’s peak buying month yielding fewer than 2,200 units on the MLS. Listings were lower, in fact, than last fall when September totalled 2,300 units and October was slightly above May’s 2,189 with 2,192. By comparison, in 2015 over 4,000 properties were listed, and over 5,000 were available in May of 2012.

 

New listings totalled 1,356 units, the highest infusion of inventory since June. It is too early to tell if the jump in new inventory is the start of a trend, or merely sellers taking advantage of the perennial peak market period.

 

Of May's 775 sales, 27 were commercial transactions.

 

As for an outlook for June and into the summer, Juras says demand for single-family homes priced between $900,000 and $1.3 million should continue to outpace supply, and there is the prospect of rising interest rates on the horizon.

 

“We saw a segmented market this spring, with specific types of homes garnering a lot of attention while others were passed over, and that is expected to continue into the summer,” Juras said. “Single-family homes priced under a million or just above a million are likely to yield multiple bids, and on opposite side, the luxury market in the realm of $2 million and higher is going to see continued resistance due to cost pressures and a likelihood of higher mortgage rates.” C

 

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