Victoria Real Estate Market Report Update January 2021
Sales of homes in Victoria continued at a very brisk pace through the month of January and the trend is continuing in February. The volume of single-family homes sales was up 48.5% over than January 2020, while the number of sales of condominiums was up 83.1% over January 2020.
The Greater Victoria market continues to suffer a severe shortage of product. There were 32.5% fewer active listings in January 2021 than in January 2020.
The benchmark price of single-family homes last month in the Victoria core was 8.3% higher than in January 2020. For condominiums, the benchmark price decreased 0.9% from January 2020 to January 2021.
Forecasting future prices in the housing market is always fools game. For 2021, the Royal Bank has forecasted the cost of homes in Canada will increase by 8.4%. Contrast that with the National Bank whose upside case and downside case yield an average price decline in 2021 of 5.2%. We believe that the Victoria and Vancouver Island housing markets will remain robust this year. Unconditional and multiple offers are more commonplace due to the low amount of inventory and we see this continuing at least for the next few months.
If you have a rental property, the January 2021 Canadian Mortgage and Housing Corporation (CMHC) Rental Market Report will be of interest to you.
CMHC analyzed the rental market in most major centres in Canada. Basic supply and demand principles might suggest that that when the vacancy rate goes up, rents should decline. However, in the Victoria market, CMHC has reported that while the vacancy rate increased from 1% in 2019 to 2.2% in 2020, the average rent increased by 3.3% in 2020 to $1275. So much for basic principles. This is the first time since 2013 that the vacancy rate has gone over 2% in Victoria. CMHC believes that the pandemic has driven down demand for rental accommodation. The economic downturn, travel restrictions and the great number of people working and studying from home are all factors.
You can find the full Victoria Real Estate Board report as well as recent reports from the BC Real Estate Association and the Canada Mortgage and Housing Corporation by clicking on the links to the right. For a look back on the Victoria Real estate market in 2020 and data on what type of homes were selling, inventory levels, house prices and more – see our can our real estate year in review infographic
If you have any questions, we’re here to help.
Hal Decter, LLB & Audra Poole