Welcome to 2025! The beginning of the year is such a great time to pause and plan for the year ahead, isn’t it? Whether it be carreer moves, school moves, holiday plans, or “moving moves,” I am willing to bet that there will be some change or changes in your life this year! When it comes to real estate and the Victoria market, I’d love to give you a brief snapshot of what is taking place so far...so you can see the trends and any changes. I’ve always felt that in life, knowledge matched with wisdom can provide some great outcomes. Here is what I’m seeing so far this year.
In January, the housing market showed notable strength:
Sales Surge: Sales increased by 24% compared to January of the previous year.
New Listings Rise: There was a 22% uptick in new property listings.
Price Growth: Properties sold at a faster rate and at slightly higher prices than the same time last year.
This positive momentum has been ongoing since interest rates decreased last fall, bringing sales back to average levels after an 18-month slump. Currently, the market has about 5.7 months' worth of inventory, which historically leads to modest price increases of 2-5%. This is a bit tighter than last year's 6.3 months of inventory.
When adjusting for seasonal variations:
Townhouses: Sales dipped slightly, but due to the low volume, it's hard to determine a clear trend.
Condos: Experienced a small decrease in sales.
Detached Homes: Saw a slight increase in sales, both remaining above recent lows.
Inventory levels have remained stable, showing a 12% increase from last year but not deviating much since mid-last year. Seasonal adjustments help clarify these trends, as raw inventory numbers can fluctuate throughout the year.
The reason we haven't seen a decrease in inventory, despite stronger sales since last fall, is due to the influx of new listings. Many of these are properties being relisted after not selling in previous years, providing buyers with more options.
"The overall housing market in the Greater Victoria Area continues to show signs of balance," says Victoria Real Estate Board Chair Dirk VanderWal. "There are strong fundamentals underpinning our market. Pricing remains stable, inventory levels are favourable when compared to recent years and interest rates continue to trend in a positive direction for consumers. Of course, there may be uncertainty in the coming months as international trade relationships are tested, so we will track if these deliberations impact the market moving forward.”
If you have any questions about the market right now, I want you to know that you can reach out and connect at any time, I would love to hear from you!