Real Estate Market Update: May and June 2024 in Victoria, BC 

The real estate market in Victoria, BC has shown some interesting trends and shifts in the months of May and June 2024. As we delve into the data, it becomes evident that the market is adapting to various factors, including economic conditions, interest rates, and buyer demand. Here’s a comprehensive overview of how the market has performed during these months.

Overview of May 2024

Sales Activity:

• In May 2024, the Victoria real estate market experienced a modest increase in sales activity compared to the previous month.
• A total of 795 properties were sold, marking a 4% increase from April 2024 and a 2% decrease compared to May 2023.
• Single-family home sales saw a slight decline, while condo and townhome sales remained stable.
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Average Prices:

• The average price for single-family homes in Victoria was $1,040,000, showing a 1.5% increase from April 2024 and a 3% increase year-over-year.
• Condo prices averaged $560,000, reflecting a 2% increase from the previous month and a 4% increase from May 2023.
• Townhomes averaged $780,000, with a 1% increase month-over-month and a 2.5% increase year-over-year.

Inventory Levels:

• The inventory of active listings rose slightly, with 1,850 properties available, representing a 5% increase from April 2024.
• Despite this increase, inventory levels remained 10% lower than in May 2023, indicating a still relatively tight market.
  
  

Overview of June 2024

Sales Activity:

• June 2024 saw a continuation of the upward trend in sales activity, with 820 properties sold, a 3% increase from May 2024 and a 1% decrease from June 2023.
• Single-family home sales rebounded with a 2% increase month-over-month, while condo sales remained steady and townhome sales saw a 1.5% increase.
  
  

Average Prices:

• The average price for single-family homes rose to $1,055,000, a 1.4% increase from May 2024 and a 3.5% increase year-over-year.
• Condo prices averaged $565,000, marking a slight 0.9% increase from May 2024 and a 3.8% increase from June 2023.
• Townhomes saw an average price of $785,000, a 0.6% increase from the previous month and a 2.7% increase year-over-year.
  
  

Inventory Levels:

• Inventory levels in June 2024 slightly increased to 1,900 active listings, a 2.7% rise from May 2024.
• Compared to June 2023, inventory was still down by 8%, indicating ongoing supply constraints in the market.
  
  

Market Trends and Insights

Demand and Buyer Preferences:

• There remains a strong demand for homes in Victoria, driven by both local buyers and those relocating from other parts of Canada.
• Buyers are increasingly seeking properties with home office spaces, outdoor areas, and proximity to amenities.
  
  

Interest Rates and Affordability:

• Interest rates have remained stable, contributing to sustained buyer interest and activity in the market.
• However, affordability continues to be a concern, especially for first-time homebuyers, due to the consistent rise in home prices.
  
  

New Developments:

• New residential developments and construction projects have been launched to address the inventory shortfall and meet the demand for housing.
• These developments include a mix of single-family homes, condos, and townhomes, catering to diverse buyer needs.
  
  

Market Outlook:

• The Victoria real estate market is expected to remain active in the coming months, with continued demand and limited supply driving price growth.
• Potential changes in interest rates and economic conditions could influence market dynamics, and buyers and sellers are advised to stay informed and consult with real estate professionals for guidance.
  
  

Conclusion

The real estate market in Victoria, BC has shown resilience and continued growth in May and June 2024. While sales activity and prices have risen, the inventory remains tight, posing challenges for buyers. As the market evolves, staying updated on trends and working with knowledgeable real estate professionals can help navigate the complexities of buying or selling a home in Victoria.