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Victoria Real Estate Market Update – February 2021

Posted by on Thursday, February 11th, 2021 in Victoria Real Estate News

Happy Valentines Day !

February 2021:

The continued COVID restrictions in our province is wearing on us all and I wish everyone well during these times. Let’s hope things start to improve in the coming months. This weekend is a special weekend to spend time with loved ones within your bubble as we celebrate Valentine’s Day on Sunday and BC Family Day on Monday. Stay safe and have a great weekend!

The Victoria real estate market experienced a very strong start to 2021, with a total of 646 properties sold in the Victoria Real Estate Board region this January, closing in on record setting territory. The new year also began with the lowest number of listings in over 25 years, resulting in a quick jump in prices in all markets. With the enormous number of Buyers vying for the same limited supply of homes, there seems to be no signs of this Buyer/Seller imbalance changing anytime soon. The lack of inventory supply combined with the increased Buyer demand is resulting in price escalations we have not experienced before. This is great if you are a seller, but it is much harder to get into the market if you are a Buyer.

Below are the statistics for the month of January 2021.

Listing Inventory:

There were 1,321 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2021, 32.5 % fewer properties than the total available at the end of January 2020, and only 3.3 % higher than the 1,279 active listings for sale at the end of December 2020. This extremely low inventory is creating increased demand in all sectors of the market, not just Single Family homes, as we are now seeing Condos generating multiple offers on a regular basis.

 

Sales:

A total of 646 properties sold in the Victoria Real Estate Board region this January, 57.2 % more than the 411 properties sold in January 2020 and 2.4 % more than the previous month of December. Sales of condominiums were up 83.1 % from January 2020 with 216 units sold. Sales of Single Family homes were up 48.5 % from January 2020 with 297 sold. The increased sales numbers appear to be correlated to the historic low interest rates enabling Buyers to purchase with higher mortgages, and the desire to have a safe haven during the COVID pandemic. Most of the Buyers are from within BC and the Greater Victoria area.

 

Average Prices:

The Multiple Listing Service® Home Price Index benchmark value for a Single Family home in the Victoria Core in January 2020 was $860,700. The benchmark value for the same home in January 2021 increased by 8.3 % to $932,000, a 1.8 % increase from the previous month of December. The MLS® HPI benchmark value for a condominium in the Victoria Core in January 2020 was $523,400, while the benchmark for the same condominium in January 2021 remained close to last year’s value at $518,800, a 0.9 % decrease. Single Family homes have been leading the price increase surge, but I believe Condos will start to increase in prices in the coming months due to the lack of overall inventory, and the fact that Single Family home prices are getting to high for most buyers. A Condo is a great alternative to get into the market.

 

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