homebuyers in victoria , like the bank of canada , are on hold Greater Victoria’s housing market saw a slow start to spring with the lowest sales count for March in over a decade. Conversely, inventory has grown to its highest level for the month in almost as long.
We noted last month that relative affordability for buyers has been eroded in Greater Victoria of late, with benchmark prices for all home types and interest rates higher than they were a year ago. It shouldn’t come as a surprise then, that buyers are opting to wait on the sidelines rather than purchase in the current environment. As inflation is back within the Bank of Canada’s target range and the economy responding to high rates in myriad ways, the expectation amongst economists and consumers alike is that interest rate cuts are on the horizon. But with the Bank of Canada opting to hold its policy rate at 5.00% at its April 10th meeting, there won’t be any rate relief before June, suggesting the slow start to spring could carry on toward the start of summer.
March is typically a busy time for residential real estate in Greater Victoria. The onset of spring, and accompanying warmer weather, often brings buyers and sellers alike out of their winter slumber and engaging with the housing market at a greater pace than the previous months. And while sales and listings were indeed higher in March than February, the increases were atypical for the season as high interest rates continue to weigh on the market. Sales were up last month compared to February, but by just 22% to 537. This increase was about a third less than the typical seasonal gain of 32%. March’s total was also 4% less than the same month last year, 25% below the past 10-year March average, and the lowest sales count for the month since 2014.
Inventory, meanwhile, increased to a greater level than is typical for March as there were 1,894 MLS listings available at the end of last month. Not only was this up 15% from February, it was 33% higher than last March and 16% above the long- run March average. It was also the highest total for any March going back to 2015. In spite of these readings for March—that is, above-average inventory and below- average sales counts—the months-of- inventory (MOI) measure for the region declined to 3.5 last month, maintaining it squarely in sellers’ market territory. (Note that an MOI of less than 5 reflects conditions more favourable to sellers; a 5-8 MOI reflects balanced conditions; and an MOI over 8 reflects a buyers’ market.) And while the MOI measure for March appears relatively low, it notably is still the highest total MOI for any March since 2015.
Copyright © April 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 April 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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