Navigating a Balanced Market
Hi there, Jeff Bishop with DFH Real Estate, bringing you your May 2025 real estate update for the Greater Victoria BC market. As we move further into the spring season, it’s clear we’re experiencing a market that, while influenced by broader economic and political factors, continues to demonstrate remarkable stability.
This past month felt quite similar to April, and the numbers from the Victoria Real Estate Board (VREB) confirm this trend. We saw a total of 642 properties sold in the Greater Victoria region in April. As the VREB reported, this was a 5.3% decrease compared to April 2024, but encouragingly, it was up 4.7% from March 2025. It’s always good to see month-over-month growth, even if the year-over-year figures show a slight dip.
One of the most notable shifts we’re seeing is in the number of listings. At the end of April, we had 3,425 active listings for sale on the Multiple Listing Service®. This is a significant increase of 13.3% from March and a 13.5% jump from April 2024. As I mentioned in our video update, “there’s more options out there for buyers.” This puts us right in that “sweet spot” for inventory, as VREB Chair Dirk VanderWal noted, which is typically between 3,000 and 4,000 listings during these peak months. This increased inventory gives buyers more choices and more time to make informed decisions.
Pricing and Market Balance
When we look at pricing, the stability continues. The Multiple Listing Service® Home Price Index (MLS® HPI) benchmark value for a typical single-family home in the Victoria Core in April 2025 reached $1,344,800. This represents a 3.3% increase compared to April 2024, and it’s up from March’s value. This consistent, moderate growth in the HPI indicates a healthy market without the rapid fluctuations we’ve seen in the past.
This consistent pricing, combined with increasing inventory, means our market is leaning towards a more balanced state. As I often say, “it’s again the same as last month. It’s up 3.3% compared to last year.” VREB Chair Dirk VanderWal reiterated this sentiment, stating:
“While sales were up from March, activity in April was most likely impacted by events in play well beyond our immediate real estate market. Political uncertainty associated with the federal election, combined with broader economic concerns stemming from the United States tempered our brisk spring market growth. And yet like last month, despite these external factors, the Victoria market demonstrated continued stability, as evidenced by flat price growth and steady inventory levels.”
It’s clear that external factors are at play, but the underlying strength of the Greater Victoria market is allowing us to maintain a stable environment.
Interest Rates and What to Expect
Interest rates are always on everyone’s mind. While they didn’t come down a few weeks ago as some predicted, the good news is that predictions are still leaning towards a decrease around June 4th. Currently, you can secure a 5-year fixed mortgage for approximately 4.5%. We’re certainly not back to those sub-2% rates, but it’s a significant improvement from the near 8% mark we saw in late 2022.
What Does This Mean for You?
Despite the overall balanced market, it’s crucial to remember that the Greater Victoria market is made up of many sub-markets. As Chair VanderWal wisely points out, “activity is not the same across all areas or property types. Currently, single family homes in certain price ranges are in demand and may see multiple offers, while there is a larger supply of condos waiting for buyers.”
This is something I see firsthand. Of the 117 single-family homes sold in Greater Victoria in the past two weeks, 10 went over asking, indicating multiple offers. This means that “really good properties that are priced well, there’s still multiple offers happening.” On the flip side, if a property is priced too high, it’s likely to sit on the market longer.
Watch My May 2025 Market Update Video!
For a more in-depth, personable summary of these trends and what they mean for you, be sure to watch our latest YouTube video:
Thinking of Buying or Selling in Greater Victoria?
Whether you’re looking to buy or sell, understanding these nuances is key to a successful transaction. The current market offers great opportunities for buyers with more inventory, and for sellers, strategic pricing remains paramount.
If you have any questions about the Greater Victoria real estate market or want to discuss a strategy tailored to your specific needs, please don’t hesitate to give me a call. I’m always here to help!
Have a great day, and take care.