After a few years of unprecedented frenzy, home buyers on Vancouver Island can finally breathe a sigh of relief as they gear up to enter into a much more balanced market this fall.
Summer ended on a slow note, with sales down across all property types. According to the Canadian Real Estate Association (CREA), in the month of August, both condos and single-family home sales saw a 33% decrease compared to the same period last year. Meanwhile, townhome sales were down 43% when compared to August 2021.
Inventory, on the other hand, was up by 153% from the same month last year. These cooler market conditions have given homebuyers more time to mull over their options, and ultimately more wiggle room to negotiate with the listing side.
But according to Christine Ryan, Sales Manager at Sotheby’s International Realty Canada, prices have remained high despite this influx of inventory. Compared to this time last year, overall prices are up 15.8% in Victoria, and 18% elsewhere on the Island.
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So while things have calmed down recently, it’s important to remember that making a sale in this type of market isn’t impossible – those who are looking to sell just need to be a bit more patient when listing their property.
It can help to partner up with the right realtor, to help make your listing stand out amidst the noise.
“From a real estate sales perspective, it’s important that sellers work with a brokerage that can market the listing to make it as appealing as possible,” says Ryan.
While sales are hovering below the ten-year average, Ryan notes that activity is starting to pick up in September, which could be a good indication of an active fall market to come.
And while the Bank of Canada recently announced its latest rate hike of 75 basis points – which brought its policy rate to a 14-year high – Ryan predicts that this rate hike won’t impact Vancouver Island much as other housing markets.
“[Vancouver Island] is fortunate enough to attract a strong relocation crowd who choose to retire here or make the move for a slower pace of life,” explains Ryan. “Interest rates are less of a concern for this section of the population.”
Because of its older buyer demographic, relatively low density, and temperate climate, Vancouver Island is consistently rated as one of the most desirable locations to live in Canada.
And because of this, even in the midst of cooling market conditions, the Island continues to be one of Canada’s most stable real estate markets.
This article was produced in partnership with STOREYS Custom Studio.
