April 2022 Market Statistics:
Properties Sold: 824
Active Listings: 1,365
Benchmark Condo Price: $650,200
Benchmark House Price: $1,266,200
The number of listings has more than doubled since January 2022.
Seemingly happening overnight, the market is beginning to show signs of slowing down. The shift in energy we are feeling can be largely attributed to an increase in the number of homes to choose from, combined with growing caution around increased interest rates.
Inventory numbers are still low compared to pre-COVID numbers (in April of 2019 we were sitting around 2,751 active listings); however, the number of listings has more than doubled since January of this year.
The sales to active listings ratio:
A graph published by the Victoria Real Estate Board (VREB) in the statistical package for April sales represents the sales to active listings ratio. VREB states that a ratio under 14% creates downward pressure on the market, otherwise known as a “buyer’s market”; whereas 20% and above creates a “seller’s market”. The porridge is considered to be just right when the ratio is sitting between 14-20%.
With the above information in mind, the graph (shown below) dramatically illustrates the pressure on the Victoria real estate market, with the sales to active listings ratio climbing above 20% in May of 2020 and peaking at 120% in February of this year.
What can we expect?
Delaying offers and multiple offer scenarios are still the norm, but we are seeing less offers at the table than as little as six weeks ago.
No one can say for certain; however, due to the desirability of Victoria, it is unlikely we’ll see a decrease in prices. That being said, the rate of price increases is likely to go down, possibly towards a plateau as the intense pressure we’ve experienced in the market subsides.
Wondering how best to navigate today’s market? We’re here to help. Call or text us at 250-634-2141, or email: [email protected].
Thank you for being here,
Alex Hughes* and Ricki-Lee Jewell, Victoria, BC Real Estate Agents
*Personal Real Estate Corporation
