November 2022 Real Estate Market Update
Friday Dec 02nd, 2022
Expected decrease in recorded home sales as the market continues to settle
A total of 384 properties were sold in the Victoria Real Estate Board region this November, 41.2 per cent fewer than the 653 properties sold in November 2021 and 20 percent fewer than in October 2022. Sales of condominiums were down 42.4 percent from November 2021 with 136 units sold. Sales of single-family homes decreased 34.1 percent from November 2021 with 182 sold.
“November saw a significant decrease from last year in the number of home sales recorded, but this was expected as the market continues to settle after the record-setting pace of 2021,” says Victoria Real Estate Board President Karen Dinnie-Smyth. “With a small month-over-month decrease in price, the autumn market has returned to its traditional rhythm as we approach the holiday season. Inventory levels dipped slightly but remain well above this time last year, which is providing buyers with more options.”
There were 2,111 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of November 2022, a decrease of 3.7 percent compared to the previous month of October but a 138 percent increase from the 887 active listings for sale at the end of November 2021.
“Premier Eby’s rapid introduction of changes to the Strata Property Act which remove rental restrictions and age restrictions other than 55 and older from strata developments is raising questions within strata communities. It remains to be seen what effect this may have on the strata market,” adds President Dinnie-Smyth. “It is an open question whether these changes will bring any additional rental stock to the market – with BC’s complex Residential Tenancy Act not all homeowners of vacant strata homes have the desire to become landlords and current interest rates are less attractive to investors who may want to purchase strata rental properties. It is also possible that these measures will contribute further to eroding housing affordability as older stratas with rental restrictions were generally valued lower than their rentable counterparts.”
Home Price Index Benchmark
The Multiple Listing Service® Home Price Index benchmark value for a single-family home in the Victoria Core in November 2021 was $1,249,400. The benchmark value for the same home in November 2022 increased by 4.6 percent to $1,307,100 but was down 2.6 percent from October’s value of $1,341,400. The MLS® HPI benchmark value for a condominium in the Victoria Core area in November 2021 was $536,200, while the benchmark value for the same condominium in November 2022 increased by 9.6 percent to $587,800, down by 2.5 percent from the October value of $602,700.
Original source: VREB