Interest Rates Impact Sales and Housing Trends in Victoria BC
Explore the impact of interest rates on Victoria's real estate market. Discover key statistics on property sales, inventory, and price changes. Get insights for buying or selling your home in Victoria, BC."
In November 2023, the Victoria Real Estate market witnessed a notable shift, with 407 properties sold in the region. This marked a 15.2% decrease compared to October 2022 and a substantial 17.4% drop from September 2023. Condominium sales were down by 7.2%, with 141 units sold, while single-family home sales decreased by 16.1%, totaling 193 sold. View all Victoria Homes for sale
Victoria Real Estate Board Chair Graden Sol commented, "Property sales experienced a decline in October, likely attributed to consumers dealing with interest rates not seen in nearly two decades. The uncertainty around the Bank of Canada's rate announcement in mid-October may have led some buyers to postpone their purchases due to unclear rate trends. Generally, during periods of stable interest rates, consumer confidence returns to the market. We observed an increase in sales earlier in the year when rates plateaued. However, as rates began to rise again, consumer confidence faltered."
By the end of October 2023, the Victoria Real Estate Board reported 2,756 active listings on the Multiple Listing Service®, reflecting a 2.1% increase compared to September and a significant 25.7% increase from October 2022.
Graden Sol offered an encouraging perspective, stating, "The positive news for October was the steady growth in available properties for sale. This expanded inventory benefits buyers, offering a broader selection compared to recent years. While the real estate market typically slows during late fall and winter, there remains a substantial number of active buyers. If you're considering a move during the colder months, reach out to your local REALTOR® to plan your strategy."
In terms of property values, the Multiple Listing Service® Home Price Index benchmark value for a single-family home in the Victoria Core increased by 3.9% in October 2023 compared to October 2022, reaching $1,305,900. This value was slightly lower than September's $1,312,200. For condominiums in the Victoria Core area, the benchmark value increased by 1.8% in October 2023 compared to October 2022, totaling $585,600, though it showed a slight decline from September ($589,600).
Established in 1921, the Victoria Real Estate Board plays a pivotal role in setting industry standards and implementing innovative programs to enhance the professionalism of REALTORS®. Representing 1,649 local Realtors, the Victoria Real Estate Board is your trusted source for comprehensive information on the Victoria and area housing market. If you're considering buying or selling a home in Victoria, connect with your local Realtor for detailed market insights and expert guidance.