July 2024 - Victoria MLS Market Update

by Dirk Popen

Steady Sales and Evolving Inventory Shape Victoria’s Summer Market

July 2024 continued the steady pace of the Victoria real estate market, with a total of 650 properties sold. This represents a 9.2% increase over the 595 properties sold in July 2023, though slightly down by 1.7% from June 2024.

Sales Breakdown

Condominiums: Sales rose 6.5% from July 2023, with 213 units sold.
Single Family Homes: Sales were up by 8.9% from July 2023, with 319 homes sold.

Laurie Lidstone, 2024 Chair of the Victoria Real Estate Board, commented on the market’s performance: "The month of July delivered another steady month of sales and listings, as we’d expect for an average summer season in our market. The sales in July tracked very closely to June numbers, which may have surprised some who expected that summer vacations would take more buyers out of the market."

Inventory and Market Conditions

By the end of July 2024, there were 3,348 active listings on the Multiple Listing Service® (MLS®), marking a 3.2% decrease from June but still a 38.4% increase from the 2,419 active listings in July 2023. The slight dip in inventory is typical for this time of year, but it’s a trend to watch as inventory levels are crucial for keeping the market balanced.

Lidstone highlighted the importance of these levels, saying, “We did see inventory shrink a little from the previous month. This is not unusual for this time of year, but it is a trend we’ll keep an eye on because inventory levels are crucial to keeping our market balanced.”

Government Intervention and Its Impact

An important factor shaping the real estate market in Victoria has been recent government interventions. The provincial government’s changes to the Residential Tenancy Act have introduced uncertainty, particularly for those considering properties with rental potential. Chair Lidstone noted that these changes have added complexity to an already intricate process and increased the risk for buyers and sellers.

“If you are considering purchasing or selling a tenanted or rental property, it’s imperative to bring in the assistance of a REALTOR® to navigate new requirements and ensure your transaction is successful,” Lidstone advised.

Pricing Trends

In terms of pricing, the Multiple Listing Service® Home Price Index (HPI) benchmark value for single-family homes in the Victoria Core decreased by 2%, from $1,322,800 in July 2023 to $1,296,100 in July 2024, although this was slightly up from June’s value of $1,295,500.

For condominiums, the benchmark value in the Victoria Core decreased by 0.6%, from $571,500 in July 2023 to $567,800 in July 2024, just below the June value of $567,900.

Navigating the Market in July

With a relatively stable market, buyers and sellers in Victoria experienced a typical summer slowdown but with consistent opportunities. While the slight dip in inventory may raise some concerns, the overall increase from last year offers both buyers and sellers a chance to engage in the market with more confidence.

If you’re considering entering the market, particularly with tenanted or rental properties, it’s more important than ever to consult with a local REALTOR® who can help you navigate the complexities of today’s real estate landscape.

For detailed market insights and statistics, visit the Victoria Real Estate Board here.