short-term rental restrictions help buoy new listings in victoria Like its larger neighbour across the Salish Sea, the Greater Victoria market was defined by flat sales, a sharp spike in new listings, and supply conditions that have eased to levels not seen in several years.
and February, year-to-date sales of 1,894 are tracking 4% higher than 2023 (1,827 sales). While positive in the sense that the market is maintaining traction amidst elevated borrowing costs, sales activity has been no match for the rise in new listings, causing inventory levels to climb. There were 2,207 active MLS listings at the end of April, a 53% rise from the previous year (1,444 in April 2023) and 24% above the prior- decade April average (1,784 listings). This marked the highest inventory level in a single month since July 2019 (2,284 listings) and the highest inventory for this time of year since April 2015 (2,872 listings). Of the three home types, condo inventory was the furthest above average. There were 744 active condo listings in April, up 56% year-over-year (from 476 in April 2023) and 42% above the past 10-year April average (522 listings). Taken in aggregate, the combination of stagnant sales and rising inventory has eased supply dynamics in the Greater Victoria region from the exceptionally tight conditions witnessed in recent years. Still, with 3.7 months of inventory (MOI) on hand, this is a market that favours sellers. But when considering MOIs of 2.4, 1.3, and 1.1 in each of the last three Aprils, buyers are welcoming a more healthy variety of housing options compared to years past.
Market dynamics in BC’s two largest housing markets largely mirrored each other in April. Like the Vancouver Region, the Greater Victoria market was defined by flat sales, a sharp spike in new listings, and supply conditions that have eased to levels not seen in several years (though still firmly in sellers’ market territory). Starting with what was the most notable trend, new listings activity expanded at an exceptional clip this month, correlating with BC’s new short-term rental restrictions that came into effect on May 1st. We covered in detail in both the Vancouver rennie review and a recent article how new for-sale listings in Vancouver (especially condo), as well as 1-bedroom and furnished rental apartment listings (those units most likely to be used as short-term rentals), accelerated at rates well beyond normal for this time of year. Of course there were other factors at play as well, namely changes to the capital gains inclusion rate and general financial
pressures from higher interest rates, but the short-term rental restrictions were likely a leading catalyst. Greater Victoria was not exempt from this confluence of factors. New MLS listings climbed to 1,398 in April, marking a 28% month-over-month increase (from 1,091 in March). In fact, we parsed the data back to 2000 and found this to be the largest March- to-April increase on record, and well above the typical 4% March-to-April expansion seen between 2000-2023. Honing in on April specifically, new listings were 20% above the past 10-year average for the month (1,162 listings), while new condo listings of 467 were 34% above the norm (348 listings). The number of MLS sales in April (604) were virtually unchanged from the prior year (603 in April 2023) though they were still 19% below the prior-decade April average of 747 sales. Thanks to strong activity in January
Copyright © May 8, 2024 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of May 8, 2024. All data from the Victoria Real Estate Board & Rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information shouldtakestepsastherecipientmaydeemnecessarytoverifytheinformationpriortoplacinganyrelianceupontheinformation.Theinformationcontainedwithinthisreportshouldnotbeusedasanopinionofvalue,suchopinionsshouldandcanbeobtainedfromarennieand associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 3
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