2023 Insights - Greater Victoria
Insights based on the Multiple Listing Service® Home Price Index
Yearly Report - 2024:
It has been a very interesting year in real estate and there are some key highlights for us to consider as we move into 2024. We saw interest rate increases, fewer sales and government intervention in 2023. Pricing didn't move very much at all over the year with a 2.5% increase for Single Family Homes, a 0.4% increase for Condominiums and a 1.4% increase for Townhouses in Greater Victoria.
Interest rates have played a huge role in our real estate market over the last three years and 2024 won't be any different. The next interest rate decrease is expected by most financial experts sometime between March and July of 2024. The current benchmark interest rate is 5% with expectations this could fall as low as 3% by the end of 2024 after 4-6 incremental rate decreases. We are starting to see a light at the end of the "high interest rate" tunnel which will create much more buyer demand.
Inventory has also been a big factor in our market this year. Only 6,207 properties sold in 2023, a result of low buyer demand which fuelled low seller confidence. As realtors, we just didn't have the inventory to work with that would motivate buyers to keep actively searching. We have seen unusually low active listings and sales for the last 18 months. From a team perspective working with clients, there are many homeowners looking to sell... just at the right time. With our real estate market improving, this could be the tipping point creating a wave of sellers who will now list their property.
Understanding where pricing will go in 2024 is very difficult but after long consideration we expect prices to increase by 3% - 6%. Prices should increase in the spring while inventory should peak in the fall.
The recent government intervention in our real estate market is very telling. Both Federal and Provincial governments are trying to do everything they can to increase inventory. The BC government was able to pass far reaching legislation over short term rentals this year because they said we have a "housing crisis". Canada needs at least 5.8 million homes built by 2030, we are on track to build 2.2 million. The government knows we have a very real housing shortage, but with no real plans to build more homes, expect real estate in Victoria to become only more desirable and valuable in the coming years.
In 2023 we were able to sell many great homes while building strong relationships with our clients. The feedback we have received regarding our service has empowered us to continue being our best as we move into the new year. Thank you to all our amazing clients!
Do you have dreams of real estate in 2024? We can help.
Featured Listings
