THE VICTORIA MARKET
Posted by John Vernon & Associates on
After four exceptional quarters, running from July 2020 to June 2021, it is perhaps not surprising that the real estate market in Victoria took a pause in the 3rd Qtr of 2021. Also, sales typically slow over the summer months. On the supply side, the number of listings was down dramatically from last year. Indeed, the inventory of homes for sale is at a historic low. At the same time, sales activity slowed. Many argue that this is in part due to the lack of inventory. The ratio of sales-to-listings (a measure of market strength) was up from last year. As a consequence, the upward pressure on prices continued into the 3rd Qtr of 2021. Properties are spending less time on the market before they sell. Whereas the 3rd Qtr of 2020 was marked by a high demand for SFDs, the 3rd Qtr of 2021 has seen a resurgence in the sale of condos. Overall, the Victoria real estatemarket remains in strong seller’s market territory. The number of new residential listings through the Victoria Real Estate Board’s (VREB’s) MLS® in the 3rd Qtr of 2021 was 2,681 down -31.1% from 3,892 a year ago. Sales of residential properties (i.e., all types of housing excluding lots/acreage and commercial) totalled 2,320 in the 3rd Qtr of 2021, down -17.5% from 2,811 sales in the 3rd Qtr of 2020. The sales-to-new-listings ratio was .87 in the 3rd Qtr of 2021, up from .73 a year ago. The average sale price (SP) of a residential property in Greater Victoria and other areas was $875,639 in the 3rd Qtr of 2021, up +7.9% from $811,353 in the 3rd Qtr of 2020. The median sale price was $775,000, up +4.9% from $715,000 last year. On average, properties sold about +1.0% above the original list price. The figure of $875,639 compares to August 2021 average sale prices and year-over-year percentage changes of $1,175,729 (+12.6%) in Vancouver, $1,074,011 (+17.7%) in Toronto, $992,151 (+25.7%) in the Fraser Valley and $505,447 (+10.8%) in Calgary.