more choice , whether buyers want it or not Greater Victoria has consistently had the tightest supply conditions among BC’s major markets since 2016, but a recent increase in inventory, combined with depressed sales activity, means buyers don’t have to go inland for more housing options.
above its prior 10-year average, a product of challenging economic conditions and new government regulations that have had considerable impacts on condo investors. On the other side of the ledger, MLS sales of 644 were down 15% month-over-month, about 4.5 times greater than the typical 4% May-to-June decline. Oak Bay (-58%), Saanich West (-32%), and Langford (-21%) were among a group of notable outliers with the biggest declines in monthly sales. All told, sales across the region were 22% below their prior 10-year June average (of 821). Prospective homebuyers in Victoria haven’t had this much flexibility in a decade. Depressed sales activity means they have less competition from other buyers, and higher inventory means they have more options to mull over. This could all change with a few more interest rate cuts by the Bank of Canada (which could come as soon as July 24th), but for now at least, Victorians don’t have to go inland to find more options.
Here’s a fun real estate fact that you can share with your friends, family, and clients: Greater Victoria has had the tightest supply conditions among BC’s three biggest housing markets for the better part of the past decade. One way to measure this is by using the months of inventory (MOI) metric, which takes total active listings at the end of the month and divides it by sales in said month. We looked at historical MOI in BC’s three primary markets and found that Victoria has had the tightest supply conditions (i.e., the lowest MOI) in every month since April 2016, or 99 consecutive months. The region had an average MOI of just 2.7 over this period versus 4.1 in the Vancouver Region and 5.2 in the Central Okanagan. Housing supply conditions are tightest on the island, and ease as you go inland.
typically reaching its lowest point during the spring (when sales activity is highest), and rising through the summer/ fall to its peak later in the year. As such, it is important to be consistent when comparing MOI between markets and when comparing MOI across time for the same market. Greater Victoria’s overall MOI climbed to 4.3 in June (from 3.5 in May), which was considerably higher than the previous 10-year June average of 2.7. In fact, this was the highest level for the month of June since 2014 (5.6). We’ve touched on it extensively in recent Victoria rennie reviews, but rising inventory has been a big driver of upward MOI. Active MLS listings reached 2,791 in June, up 4% month-over-month and 31% above the prior 10-year June average (of 2,133). Condo inventory was especially high at 54%
The MOI metric is extremely seasonal,
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