Victoria’s real-estate market in September outpaced sales activity from a year ago with 571 total transactions compared to 493, as a 2024 price plateau continued across all segments, according to the latest Victoria Real Estate Board (VREB) data via the Multiple Listing Service (MLS).

 

272 single-family home sales reached an average price of $1,227,012 and a $1,100,000 median, dollar figures virtually equal with the start of 2024, but lower than both August’s prices ($1.26 million average; $1.16 million median) and those of September, 2023 ($1.34 million average; $1.21 million median). Last year, September recorded 228 single-family-home sales.

 

Victoria real-estate agent Ryan Cook (see website) of Victoria-based brokerage Remax Camosun, says buyers had an overall upper hand in the last month of summer, albeit slightly, and competition remained strong for desirable offerings in Victoria’s core.

 

“Homes in the established communities of the Capital Region priced at approximately $1 million to $1.5 million saw plenty of interest, especially listings in that price range in Victoria’s older neighbourhoods,” Cook said. “Where demand waned considerably, is among homes priced above $1.5 million, to where listings of $2 million and above struggled to generate not only sales, but traffic at open houses.”

 

Cook says, that despite several mortgage rate reductions throughout 2024, the lending environment is still challenging, and many buyers remain value-driven. This has led to more sellers being strategic with their listings and ‘right pricing’ their expectations.

 

“The end of summer and the entry into the fall market typically generates a jump in new listings, and we saw 1,441 new units enter the market in September on the heels of August’s 1,043,” Cook says. “The total number of active listings rose to 3,361 units from 3,191, the second highest in 2024 after June and July. With 571 units sold last month, there is six months of inventory on the market. And while the market is relatively balanced for both sellers and buyers at the moment, buyers can eventually leverage more control if sellers start off with unrealistic valuations.”

 

Condominiums, meanwhile, had a total sales volume of 189 units in September, up from 155 last year and eight units above August’s 181. The average price paid in September was $596,209 at a $542,750 median, on-par with August. One-year-ago, the average was $652,605 with a $559,000 median.

 

“Condominium buyers are recognizing longer-term value, particularly in Victoria’s downtown core and in Harris Green, where social issues have led to a lull in sales throughout 2024,” Cook said, adding that “thinking longer term, Harris Green and downtown Victoria will have several thousand more residents within several years than they do today, and that is surely a positive metric for the city centre, at a time when social and economic challenges dominate downtown-focused headlines.”

 

Two-bedroom, two-bath condominiums continue to be in-demand regionally, Cook said, as both a first-time buying opportunity and as a downsize option for older buyers.

 

Townhomes outpaced their valuation from a year ago, and saw one sale more than last year’s 65 in September. A year ago, the average price paid was $801,095 at a $744,000 median. This year, the average was $828,563 at a $767,500 median, across 66 sales.

 

“Townhomes are in demand, but their ‘missing middle’ availability means few units are on the market, so options remain light. This is likely why this segment of the market saw an appreciation in values over last September, as demand has been stronger than supply for well situated, quality inventory.”

 

As the fall sales season ramps up, change is on the horizon for the real-estate market as the federal government readies to permit 30-year amortizations this December, along with additional measures to help younger or first-time buyers tap into homeownership. Coupled with an expectation for interest rates to continue sliding in 2025, more buyers are expected to enter the demand pool, and that may create incentives for value appreciation, but at the very least, it ought to secure a stabilizing effect on prices.

 

“Analysts are forecasting even lower mortgage rates in 2025, and with an additional five years for a mortgage amortization, that will allow new buyers to qualify for a home purchase,” Cook says. “And when you factor an amortization change, lower interest rates and other programs being unveiled by governments, a young family currently settling for a two-bedroom condo, could soon have the opportunity to choose a smaller townhouse, and that is a compelling narrative for local households.” C

 

© Copyright 2024 by Citified.ca. All rights reserved.