According to a recent house price survey of Greater Victoria conducted by Royal LePage, prices are on the rise, albeit modestly.
Every quarter, they analyze the housing market and break it down to show people what prices are looking like in the region and how they compare to previous years.
According to Royal LePage, the aggregate price of a home in Greater Victoria increased by 1.1% since last year to $1,045,100.
On a quarterly basis, this cost increased by 1% since the first quarter.
By housing type, the survey suggests that the median price of a single-family detached home increased 1.5% to $1,263,300 since last year.
Meanwhile, the median price of a condominium increased by 1.8% to $531,300.
Neil Bosdet, sales representative for Royal LePage in Victoria says that the recent, marginal cut to the Bank of Canada’s interest rate has not inspired much confidence in the home buyer’s market.
“Some prospective purchasers are cautiously waiting in the wings for further rate cuts,” said Bosdet.
“Activity has continued to slow, returning to a more seasonal pace that is reflective of a typical summer market. The seasonality of our market disappeared during the pandemic, and now appears to be making a comeback.”
He continued by noting that as demand has softened from the high interest rate, the pool of available listings has been able to grow and Bosdet now says he believes the market to be balanced.
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“A small percentage of these homes are from sellers who are looking to downsize and lower their monthly carrying costs ahead of their impending mortgage renewal, which will undoubtedly be at a much higher rate. Inventory levels are now at a point we haven’t seen in several years,” Bosdet explained.
Royal LePage predicts that if the Bank of Canada continues to cut rates, lower mortgage costs will help kickstart the market with increased buyer’s confidence
They added that this may be a process that is a few years in the making.
Nationally, the average price of a home rose by 1.9% since last year to $824,300 in the second quarter of 2024.
Royal LePage is predicting that the aggregate price of a home in Canada will increase 9% in the fourth quarter of 2024, compared to the same quarter last year.
Additionally, they say that nationally, homes are forecast to see continued moderate price increases through the second half of the year.
