What does the current Victoria real estate market look like?
As part of our monthly Market Insight Series, I am excited to continue to bring you regular insights into the Victoria and Vancouver Island market trends, so you can make better buying and selling decisions. Below I will jump into the most important market numbers to look into, I will provide glossary term definitions, and will conclude with resources if you want to further research current trends and stats. If you want to see what the Market Insight for the previous month was, click here.
The Bank of Canada has frozen the current mortgage rates, which means that they are still very low and still a great incentive to get into the market. The absorption rate is lower than the previous period, but still very high and as you can see from the active listings, we are currently in what is considered a strong seller's market as there is very little supply to satisfy the demand for housing.
January broke the record for lowest monthly inventory on record, this is reflected in the measly 744 active listings at the end of January 2022, a decrease from 1321in January 2021. Sales numbers were low in January, but that shouldn't be taken as a sign that the market is slowing down. We really have to consider low inventory levels as a primary driver.
However, January is typically the most competitive time of the since seasonal inventory is near December lows, yet buyers are rapidly entering the market.
Below is a table that outlines the current (February 2022) housing benchmark pricing along with a sample calculation that can give you an idea of what it might cost you to own a home.
It takes time for housing inventory to build, and years for new builds to be added into the market, so there is no reason to expect market pressure to ease up soon.
If you are looking to buy this year, the next couple months typically see's a rise in inventory levels. If that happens it should take some of the edge off of the current competitive market environment, but 2023 is still looking like a competitive rising market.
The goal is to give you insight into what the overall market view looks like in Victoria and Vancouver Island. I have included more Resources below so that you can dive in and read more at your leisure. I will also make sure to include a new Glossary Term each month, and define it to add to your knowledge of common industry terms.
Feel free to contact me if you want to learn more or if you have any questions about the broader market trends.
Fixed Mortgage Rate
Simply put, the term “fixed-rate mortgage” refers to a home loan that has a fixed interest rate for the entire term of the loan. This means that the mortgage carries a constant interest rate from beginning to end. Fixed-rate mortgages are popular products for consumers who want to know how much they’ll pay every month. Borrowers can negotiate after a certain term based on their contract, but that is not a free service.
1. VREB Insight:
2. Mortgage Calculator:
3. Mortgage Rate By Bank: