As we wrap up the summer, Victoria's real estate market is behaving as expected for this time of year. In August, we saw 545 sales and 1,043 new listings. Compared to last year, these numbers are almost identical, though the number of new listings is slightly lower. What’s worth noting, however, is that our total inventory has grown by 28.2%. We ended August with 3,191 active listings, a noticeable increase from the 2,490 we had at the same time last year.

Affordability: A Mixed Bag While home prices have remained relatively flat, we’ve seen slight improvements in affordability. Mortgage rates have dipped a bit, and incomes have crept up, creating a window of opportunity for some buyers who had previously been priced out. However, these improvements are modest, and we’re still far from returning to historical affordability norms.

Single-family homes, in particular, are likely to become less affordable over time, and we may see condos follow the same trend unless there are further rate drops, income increases, or price adjustments to improve affordability.

Market Trends and What’s Ahead Since June, inventory levels have been steadily declining—a trend that will likely continue through January, apart from the usual spike in listings we see each September. This surge is often the last push before the winter slowdown. For those of you hoping for a true buyer’s market, like the one we experienced over a decade ago, we’d need to see a much larger increase in inventory.

Interestingly, August saw a number of properties pulled from the market. Some sellers, frustrated by fewer buyers and prices below their peak from two years ago, have opted to wait. Will recent rate drops and a slightly expanded buyer pool be enough to bring them back? If so, we may see more "move-up" or "move-down" buyers, who sell one property to buy another, which won’t significantly shift market dynamics.

Balanced Market with a Slight Seller’s Edge Our months of inventory remain stable, and the sales-to-listings ratio has improved, signaling a balanced market overall—though there’s still a slight tilt in favor of sellers. This is a shift from the clear buyer’s market we saw last fall.

The Opportunity For buyers, there’s good news. Properties that have been on the market for more than 2-3 weeks often present solid negotiation opportunities. With more inventory to choose from, now could be a great time to explore your options.

‘Your Dreams, My Mission’

Lisa Davies | REALTOR®

Review the August 2024 statistics package here.