What does the current Victoria real estate market look like?
As part of our monthly Market Insight Series, I am excited to bring you regular insights into 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.
The current mortgage rates are still very low which is a great incentive to jump into the market. The absorption rate is also 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. However, since this is not a trend that will go down soon, it is still a good time to buy as real estate appreciation is expected to continue in 2022. As the old saying for real estate goes:
--> Buy whenever you can afford and not when it is the most optimal, as you may not be able to afford it again soon.
Below is a table that outlines the current (January 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.
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.
Simply put, absorption rate is a way to measure the rate at which available homes are being sold in a specific market over a specific time frame. Usually measured in months, this simple calculation measures how many homes are sold in a month versus how many homes are actively for sale. In Victoria an absorption rate above 25% signals a seller's market and an absorption rate below 10% is an indicator of a buyer's market.
1. VREB Insight:
2. Mortgage Calculator:
3. Mortgage Rate By Bank: