Victoria’s September real-estate market transactions showed a marked improvement over last year as 493 properties changed hands compared to 410 in 2022, while single-family-home median prices pushed to a 16-month high, according to the latest data from the Victoria Real Estate Board (VREB).

 

Despite high interest rates, prices remained buoyed by a relative lack of re-sale inventory on the Multiple Listings Service (MLS) as homebuyers paid an average of $1,341,151 for single-family homes, a significant increase compared to $1,213,743 one-year-ago. The median in September pushed well above recent highs, to $1,210,000, a realm not seen since May of 2022’s $1,240,000 and well above the annual average median thus far in 2023 at $1,158,000. In August, houses sold for an average of $1,348,662, and posted a $1,165,000 median.

 

Victoria realtor Marko Juras (see website) says that while a sustained strong market compared to 2022 is no longer a head-turner so far into the year, that a median price – the precise mid-point value among all 228 single-family home sales in September – pushed so far past the annual average median, is noteworthy.

 

“It is surprising to see the median jump so high, and to overtake more than a year’s-worth of market activity,” Juras said. “This means that half of all homes that sold, sold for over $1.21 million. That’s a significant milestone when interest rates are pushing 6% on five-year terms.”

 

155 condominium sales also showed gains compared to much of 2023, says the VREB, with an average take for sellers at $652,605 and a median at $559,000, both of which are the highest figures of the summer. Last September, condominium sales averaged $628,356 at a $545,000 median, with subsequent months hardly deviating through mid-2023. In August, the average was $619,128 with a $550,000 median.

 

VREB data also shows that townhomes dipped in value in September compared to August, to a $744,000 median and an $801,092 average. Much like condominiums, the year-over-year gain was slightly above last September’s $786,835 average and $737,500 median. For 2023, September’s prices sustained a plateau that began in the second half of 2022.

 

Compared to a year-ago, there were 142 additional 'new' MLS listings in September, totalling 1,297 units compared to 1,155, while active overall listings numbered 2,699 versus 2,300 last year, a 399-unit spread. The 17% inventory uplift, however, failed to weigh down prices, as desirable homes saw buyers reach with over-asking offers and even generated bidding wars.

 

“We continue to see a low supply of MLS units compared to demand, but we have seen an uptick of condominium inventory as multiple new-build projects complete. Overall, while active inventory is higher this year than last, it is important to recognize that over-priced listings tend to linger for long periods of time,” Juras said, adding that “the minute you’re priced above market, you’re going to have a difficult time drawing a buyer, but we are still seeing many sellers who have expectations that may be unrealistic, especially sellers who bought in 2022 and are hoping to sell this year without losing money on transactional costs, and wanting to turn a small profit.”

 

For the remainder of the year, pent-up demand from buyers priced out due to high interest rates is unlikely to be tapped with rates expected to remain steady or even climb higher, pending inflationary data.

 

For now, Juras would suggest that buyers who bought within the last year and are considering selling, to wait and see where the market goes in the New Year.

 

“If you bought within the last 12 months, and you’re thinking of listing, you should be prepared to temper your expectations unless your property is likely to generate interest between several motivated purchasers. Transactional costs, closing costs, taxes and moving costs could eat away into a higher asking price above what you paid last year, and higher interest rates on a new purchase will require additional income for mortgage and monthly operating expenses, even if you're making a relatively lateral move." C

 

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