While fewer homes are selling in B.C.’s capital, prices continue on an upward trend.
In June, 612 properties sold in and around Greater Victoria — 19.6 per cent less than May and a 35 per cent drop year over year, according to the Victoria Real Estate Board (VREB).
Meanwhile, sales of condominiums were down 40.2 per cent from June 2021 with 202 units sold, as sales of single-family homes decreased 31.4 per cent over the same period with 302 sold.
Pointing to the latest data, VREB President Karen Dinnie-Smyth describes the market as “a bit more normal right now” and says inventory is inching closer to pre-pandemic levels.
“This is good news,” said Dinnie-Smyth.
The 2,059 active listings for sale on the Multiple Listing Service (MLS) at the end of last month represented a 15.9 per cent increase compared to May and nearly double the 1,375 active listings at the end of June 2021.
“It may seem counterintuitive to continue to talk about the need for supply at a time when inventory is rising,” said Dinnie-Smyth.
“We must keep the conversation alive, and we urge all levels of government to continue to aggressively address the housing supply situation. We need more supply of all types of housing.”
In the Victoria Core, the Multiple Listing Service Home Price Index (MLS HPI) benchmark value for a single-family home hit $1,464,400 in June, the VREB says.
That’s a 23.6 per cent jump year over year, when the benchmark value was $1,184,700.
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The MLS HPI benchmark value for a condominium in the same area climbed to $643,100 last month, up from May’s value of $633,800 and 29.7 per cent higher than June 2021.
In March, the B.C. government said people buying homes in the province’s hot real estate market could soon be protected by a “cooling-off period” that gives them time to back out of an agreement.
According to Finance Minister Selina Robinson, the Property Law Amendment Act introduced in the legislature will help build the framework for a protection period for homebuyers to properly assess, finance and inspect the home they want to buy.
Still, some real estate experts voiced concerns, including University of B.C. Prof. Tsur Somerville, who said the legislation may allow purchasers to make offers without consequences, putting the seller at a disadvantage.
Looking ahead, Dinnie-Smyth points to “future challenges,” including changing interest rates. She says supply chain and labour constraints will also hamper the ability to create new homes at a pace to meet future growth.
“New supply will be the key to future housing attainability in our community,” added Dinnie-Smyth.
-With files from The Canadian Press
Ethan Morneau
