Victoria Housing Market Predictions for 2022
Posted by Garman Group on
Navigating the Victoria housing market – and the BC market as a whole – became increasingly complicated throughout the pandemic. Homeowners, renters, and prospective property buyers and sellers grappled with much higher levels of uncertainty within the real estate industry over the past two years. So, naturally, the housing market question on everyone’s mind right now is: What happens in Victoria now?
Although we’d love to promise a concrete end to the uncertainty, real estate predictions are, by definition, estimates of what we can reasonably expect for Victoria’s housing market in 2022. That said, as born and bred locals with decades of real estate experience, we have expertise on our side to inform our predictions and share such insights with our clients.
So if you’re looking for answers on how to maintain your competitive edge in Victoria’s hot housing market, you’ve come to the right place. Read on for some Victoria housing market predictions for 2022.
Housing demand continues to soar
According to the Canadian Mortgage and Housing Corporation (CMHC), the Greater Victoria housing market is expected to stay hot through the next few years. Population growth is likely to return to its pre-pandemic pace, which will drive increased demand for housing. That means that as pricing goes up for homebuyers, property value for homeowners will also increase, providing sellers with an excellent opportunity for a higher return on investment.
The pandemic effect
With the rise in work-from-home mandates and the continuing shift toward remote work, Covid-19 certainly had many people re-evaluating their living situations. Many families, couples, and professionals started relocating from Vancouver to Victoria once work locations became more flexible. Plus, now that travel restrictions are lifting, international students and professionals are returning to the greater Victoria area. Both these population factors boost residential demands. If you’re planning to put your home on the market in the near future, BC’s historically low level of market listings combined with growing demand could be of real benefit to you right now!
Since so much of the housing market depends on what happens next with the pandemic, lockdowns, and the economic fallout of the same, it’s hard to say definitively how long buyers can sustain high levels of real estate spending. However, the British Columbia Real Estate Agency suggests that the market could start cooling down around 2023, with an anticipated 15% decrease in residential sales across the province by the end of 2022.
Skyrocketing building prices remain
One downside of Victoria’s hot housing market? Lumber prices have increased exponentially during the pandemic, putting homebuilders in a real bind budget-wise. Unfortunately, increased demand also leads to extra costs of building materials and delays in both material delivery and building permit processing. These factors can roadblock development projects and home renovations, which will influence property supply and demand.
Whether you’re looking to buy, sell, or invest in a property this year, these are a few of the Victoria housing market predictions for 2022 that could have a significant impact on your experience. Be sure to keep these front of mind as you explore your options.
Stop second-guessing your next move! Hire a Garman Group REALTOR® who knows the Victoria housing market inside and out, and we’ll empower you to make informed decisions about your real estate investments.