What You Need to Know About the Victoria Housing Market in 2022

Posted by on

Navigating the real estate market can be intimidating and overwhelming, we think we all can agree there. From changing interest rates, price fluctuations, and understanding potential risks, it can be hard to figure out what exactly you’re getting into. It’s important to do your research to understand the market to make informed decisions. And that’s what we’re here to help with!

 

What’s the Victoria housing market like right now?

Since the pandemic, we’ve seen a significant increase in Victoria real estate prices. Higher house prices mean more potential buyers are pushed out of the market because they can’t afford the prices, which means demand will also go down as less people are buying. Higher prices also means that more people are motivated to sell their houses and take advantage of the high value of their current home. With the number of listings up 30% from April 2022, there’s more options available and less people looking.

Just to give you a sense of these high prices, according to the Victoria Real Estate Board, as of June 2022, the average cost for a single-family home in Greater Victoria is $1.4 million dollars, which is a 20% increase from prices in May 2021. 

One of the most important things to know is that there’s a lot of risk and uncertainty in the housing market, which means it can be hard, or nearly impossible, to accurately predict where it’s heading next.

 

What will it look like in the future?

The future of the Victoria housing market isn’t exactly clear, but there are some predictions. A recent housing report from the Royal Bank of Canada (RBC) predicts a “modest price correction” due to the climbing interest rates. RBC says that British Columbia and Ontario will see the most significant declines in prices with a 3.8% drop in B.C. and 2.3% in Ontario, and 2.2% nationwide.

A recent report from Desjardins shows that a drop up to 15% is in the cards for nationwide housing prices by the end of 2023. Even though this is a significant price cut, it’s still important to note that housing prices will remain higher than they’ve been historically, staying close to 30% above 2019’s pre-COVID levels.

No matter what reports or predictions you’re looking at, you’ll likely find different stats and predictions. The market's future isn’t clear, so it’s important to stay informed and stay up to date on all the latest market developments!

 

Is now a good time to buy?

It’s hard to say 100% whether it’s a good time to buy or not. Prices have been rising, so you can expect to pay some pretty high prices. But, at the same time, interest rates are projected to rise in the future. It’s all about learning the potential risks and figuring out what will be the best for you! If you’re investing in your forever dream home, the risks of buying now are low when it comes to locking in on an interest rate before they increase.


Need some help navigating the housing market and finding your dream home? Get in touch with a Garman Group REALTOR® today!