The Victoria real estate market demonstrated resilience in July, with sales figures holding steady despite economic fluctuations. The Victoria Real Estate Board reported 650 property sales in July, a 9.2 per cent increase from July last year, though this uptick is largely attributed to additional business days in the month rather than a significant market shift.
Laurie Lidstone, Victoria Real Estate Board chair, described July as "another steady month of sales and listings, as we'd expect for an average summer season in our market." The sales volume remained nearly unchanged from June, defying expectations of a summer slowdown.
While new listings saw a nominal increase, inventory levels decreased slightly, with 3,348 active listings at the end of July – a 3.2 per cent drop from June but a 38.4 per cent increase from July 2023. This subtle inventory contraction is typical for the season but warrants monitoring to maintain market balance.
The market's stability is particularly noteworthy given recent economic and regulatory changes. The provincial government's amendments to the Residential Tenancy Act have introduced uncertainty for investors considering properties with rental options. Additionally, while interest rates have begun to decrease, their impact on affordability remains limited.
Housing prices have seen minor adjustments, with the benchmark value for a single-family home in the Victoria Core decreasing by two per cent year-over-year to $1,296,100 in July 2024. Condominium values also saw a slight 0.6 per cent decrease to $567,800.
Market analysts note that despite significant economic shifts over the past two years, including changes in bond yields, inflation rates, and housing inventory, overall sales activity has remained remarkably consistent. This stability underscores the critical role of affordability in the Victoria real estate market.
As the market navigates through economic uncertainties, including rising unemployment rates particularly affecting youth and new immigrants, industry experts anticipate a period of sideways movement. The market's future trajectory will likely depend on improvements in affordability and the broader economic landscape.
