Monthly Housing Market Update
Caleb's Perspective on the Market
Who cares about real estate, when we are facing a crazy trade war with our neighbours to the south? Well, apparently the answer may surprise you considering we are seeing an increase in activity in the local real estate market. But much like in January, the month of February ended with an increase in both buying and selling activity. Let's start this month's update with a look at Victoria's inventory levels.
Inventory
We closed the month of February with 1,976 active residential listings for sale, and this was good for more than a 13% increase compared to this time last year. This represents the highest level of residential inventory since 2015. Furthermore, we saw an 8% increase in the number of new listings (1,026) compared to last February. In other words, more sellers are putting their homes up for sale, and buyers are seeing more options.
Residential Sales: 496 Up 9.3%
Sales
On the flip side, sales have increased by almost the same amount. For instance, in February there were a total of 496 residential sales; which amounts to a 9.3% increase year-over-year. This level of sales is much stronger than it has been in over 2 years now, but it is still not earth-shattering numbers for Victoria. For example, the total number of condos sold last month, and the number of single family detached homes sold last month, are both still running below the 10-year average for February.
Median Condo Price: $562,500 Up 5.1%
Market Gauge
So with sales and inventory rising at roughly the same rates compared to this time last year, the market is somewhat well balanced at the moment. For example, the sales-to-new-list ratio is currently sitting at 48.3%, which is right smack in the middle of a balanced market. However, the Victoria Real Estate Market is currently supplied with approximately 4 months of inventory, which slightly favors sellers. So if I had to choose one or the other, I would say this is a seller's market, but a somewhat soft seller's market, and it depends on what you are selling (small condo vs small home)?
Median House Price: $1,140,000 Up 1.3%
Prices
In terms of prices, we are seeing a higher median price for both detached homes and condos over last February. This may not be surprising given I just stated that we are slightly in seller's market territory, but the gains aren't huge. For instance, the median price of a single family detached home is now $1,140,000, but that is only up by 1.3% compared to last February (lower than inflation). The median price for a condo ($562,500) is up by an impressive 5.1% over this time last year, but that is likely an anomaly as more 2 bedroom condos are selling than small 1-bedroom and studio units.
Months of Inventory = 4 (Seller's Market) Overall, we are entering the spring in a stronger market than we have seen in at least 2 years. The big difference is that we are much better supplied in terms of inventory than we were in the years following the covid pandemic. This is shaping up to be a healthy market where buyers can take advantage of lower interest rates and more homes on the market to choose from. Sellers, on the other hand, have to price their units at market value if they want to sell quickly; but if they do they should get an offer, if not multiple offers, in a relatively timely manner. Let's just hope that our orange friend to the south doesn't blow all of this momentum up with tariffs and other whacky ideas! That's all for now, but I will be back next month with another market update. So in the meantime, enjoy the longer, warmer, and hopefully sunnier days.
February a steady month for Greater Victoria buyers and sellers
March 3, 2025 A total of 528 properties sold in the Victoria Real Estate Board region this February, 12.3 per cent more than the 470 properties sold in February 2024 and 25.1 per cent more than in January 2025. Sales of condominiums were up 26.3 per cent from February 2024 with 192 units sold. Sales of single family homes increased by 4.5 per cent from February 2024 with 234 sold.
"February was another stable month for local real estate," said 2025 Victoria Real Estate Board Chair Dirk VanderWal. "The combination of slowly growing inventory and slightly increased sales means that our market remains in balance from the start of the year, which creates comfortable conditions for both buyers and sellers. Nearly two years of steady prices combined with recent favourable interest rates are positive factors for our market. Thus far, 2025 has been a good year to buy and sell."
There were 2,630 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of February 2025, an increase of 9.8 per cent compared to the previous month of January and an 11.3 per cent increase from the 2,364 active listings for sale at the end of February 2024.
"In these market conditions properties need to be well presented and properly priced to be successful," adds Chair VanderWal. "We are following our typical early spring market cycle, which generally speaking peaks in late spring. Hopefully in the upcoming weeks we'll see more inventory enter the market to meet consumer demand. We will also watch what impacts any changes to global economic policies may have on our market if and when they occur. Right now, there are many factors that impact your housing decisions, and your favourite local REALTOR® is ready to help you navigate the current market."
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in February 2024 was $1,262,200. The benchmark value for the same home in February 2025 increased by 3.7 per cent to $1,309,500, up from January's value of $1,287,200. The MLS® HPI benchmark value for a condominium in the Victoria Core area in February 2024 was $554,700 while the benchmark value for the same condominium in February 2025 decreased by 0.5 per cent to $551,900, up from the January value of $548,100.
View our press release and summary here.
View our complete statistical package here.
Notes for Interpreting Our Statistics
The use of sale price statistics can be useful in establishing trends when applied over a period of time, i.e. six months or longer. The Victoria Real Estate Board cautions, however, that such information does not indicate the actual value of any particular property. Those requiring specific information on property values should contact a REALTOR®.
The documents we link to on this page are stored in PDF format. If your browser already has a PDF plug-in like the Adobe Reader, you'll probably be able to simply click on the document you're interested in to view it here online. If not, you can download and install this popular, free software.
Courtesy of the Victoria Real Estate Board
Interpreting the Stats
I believe that one of the best indicators to gauge the current real estate market is the sales-to-active listings ratio. Instead of just focusing on the number of sales we have in a given month, the sales-to-active listings ratio expresses the number of sales as a percentage of the active listings that are currently available for sale. In other words, current levels of demand relative to current levels of supply. For example, if we had a sales-to-active ratio of 50% this would mean that in the entire Victoria Real Estate Market we would have just 2 months of inventory for sale. In other words, if this level of sales were to continue, it would take only 2 months to sell all of the remaining listings on the market.
What does this mean for prices? Well, generally, less than 4 months of inventory indicates a seller's market with prices increasing more the lower that this number goes. On the other hand, more than 6 months of inventory generally results in a buyer's market with prices dropping. The longer the trend remains, the stronger the correlation to price increases/decreases. Interest rates, new building starts, wages and the state of the economy all have an effect, but essentially it is the amount of demand relative to inventory available for sale that drives the market.
- Caleb Mickelson