Thursday, January 5, 2023 / by Curtis Singh
Greater Victoria January 2023 Market Update
- The benchmark value for a single family home in Greater Victoria in December 2021 was $1,127,600. The benchmark value for the same home in December 2022 increased by 0.7% to $1,135,600, down 2.5% from the November 2022 value of $1,164,800.
- The benchmark value for a condominium in Greater Victoria in December 2021 was $535,500 while the benchmark value for the same condominium in December 2022 increased by 5.2% to $563,600, down 2.7% from the November 2022 value of $579,400.
- The benchmark value for a townhome in Greater Victoria in December 2021 was $745,000 while the benchmark value for the same townhome in December 2022 increased by 6.1% to $790,700, down 1% from the October 2022 value of $798,400.
Notes from the team:
First we would like to say Happy New Year! We hope everyone was able to enjoy their holidays. Now that 2022 has come to an end it is important to look at the year in review and to address what our expectations should be in 2023.
2022 in review:
This was a very interesting year in real estate. We entered the year with an overheated market fuelled by low inventory, low interest rates and high demand. This overheated market turned to a cooling market by summer which continued until the end of the year slowing down actual home sales and bringing down average prices. Single family homes saw almost no value increase over the year, while condominiums increased just over 5% and townhouses just over 6%. Interest rate increases and inflation levels have played a major role in slowing down the Canadian real estate market. It is really important to keep in mind that our real estate value increases were reaching "bubble" like levels and this market adjustment is important in order to get back to balance.
2023 in review:
We do have many irregular unknowns at this time so our suggestion is to consider what will likely happen and to make any adjustments as we get more information throughout the year. If inflation continues to go down and the Bank of Canada decides to hold interest rates, we should see a balanced market. It is likely that we will see general price declines until spring with a balanced market occurring as more buyers enter the spring and summer market. Interest rates should hold for 2023 and we can expect general price increases by summer. The next set of interest rate adjustments would likely happen in 2024 and it is expected they would decline.
As we move through the year, the indicators to watch for will be inflation rates and interest rate increases. If inflation continues and pushes the Bank of Canada to raise interest rates, then our expectations would need to adjust. Price declines could occur into the summer and sale volumes would continue to stay low. It is very unlikely that prices would fall dramatically as Victoria continues to be a desirable place to live and it provides high rental rates to investors. It is also important to remember that the Victoria real estate market is incredibly resilient and after every declining market, it has recovered and surpassed previous market highs.
In 2023 our team motto is based on a great quote by Wayne Gretzky, "I skate to where the puck is going to be, not where it has been". If you are thinking of making a real estate transaction this year, contact us so we can develop a plan to help you reach your goals and put you in the place where you want to be.
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 -
Spice Valley - We have recommended this restaurant in the past and after having them provide our New Years Eve meal, we felt it was required to remind our subscribers it is the best Indian food in Victoria! 910 Esquimalt Road.
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