Saturday, December 3, 2022 / by Curtis Singh
November 2022 Insights - Greater Victoria
Insights based on the Multiple Listing Service® Home Price Index
- The benchmark value for a single family home in Greater Victoria in November 2021 was $1,109,200. The benchmark value for the same home in November 2022 increased by 5% to $1,164,800, down 2.4% from the October 2022 value of $1,193,600.
- The benchmark value for a condominium in Greater Victoria in November 2021 was $528,800 while the benchmark value for the same condominium in November 2022 increased by 9.6% to $579,400, down 2.9% from the October 2022 value of $596,700.
- The benchmark value for a townhome in Greater Victoria in November 2021 was $731,600 while the benchmark value for the same townhome in November 2022 increased by 9.1% to $798,400, down 0.5% from the October 2022 value of $802,500.
In the month of November we saw further price decreases and a continued decline in actual sales. The market continues to settle after seeing record levels of activity just a year prior. We have been projecting monthly price declines in the range of 1.5%-2.5% on average for all categories which has ben the case for the last 6 months. We did notice single family properties above that mark this month at a 2.9% decline and townhouses below that mark at 0.5% decline. It could be the time of year but it is also likely that more families are considering townhouse properties with single family homes being out of reach due to the recent interest rate increases.
Where will interest rate go?
It is very likely that we will see a 0.25%-0.5% interest increase in the month of December. Predicting what will happen long term is more difficult but there are some factors that we can consider. First and foremost we know the Bank of Canada's main focus is to get inflation back to 2% so they will act accordingly. We have seen consecutive months of inflation decreases which will likely continue. We do have some good news in regards to supply chains catching up after declines due to covid which should have an impact on inflation. Economists are hoping December will be the last interest rate increase holding through the year of 2023 with a decline of interest rates in 2024. We should watch for consistent inflation decreases, if we don't see that expect more interest rate increases.
When is the right time to make a move?
We are going to see a decline in inventory likely until February-March of 2023 so opportunities will be limited. Of course, a smart buyer should always being looking to see if that perfect homes comes up because they do at anytime of the year. Price declines will likely continue until at least March of 2023 so a buyer can take advantage then or try to negotiate a better price in the meantime.
The discussions that we are having with our clients right now give us an indication that the market is going to pick up in Spring 2023. We saw an overheated market over covid with a cool down occurring right now. Greater Victoria will continue to be a highly desirable place to live and will always be a location with strong real estate investment.
A better service-
The Executive Group is a top producing real estate team located at the best award winning brokerage in the city, REMAX Camosun. We pride ourselves on our professionalism, our hard work and our ability to put our clients needs first. We want your real estate investment to be the best it can be, please contact us if we can be of service.
Favourite place to eat this month -
Il Covo Trattoria. - Great Italian food with a cozy ambience, a must during these cold winter months. 106 Superior Street.
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