2021 Real Estate Year in Review – Victoria BC

Home Values

The value for a single-family home in Victoria Core in December 2020 was $915,300, as benchmarked by the Multiple Listing Service Home Price Index. The value for the same home in December 2021 increased by 25.1% to $1,114,900. Benchmark values for Victoria Core condominiums also saw increases from a value of $487,100 in December 2020 to $570,600 in December 2021, an increase of 17.1%. In total, 10,052 properties sold in Victoria in 2021.

This was 18.3% more sales than the 8,497 properties that sold in 2020. Even with decreased inventory, 2021 came close to the 2016 record sales year, in which 10,622 properties sold.
The average increase in BC’s annual property assessment for 2022 is between 22%-35%.

Inventory

This year saw an extremely low inventory of homes for sale. At the end of December 2021, there were 652 active listings on the market, which was a decrease of 26.5% compared to November 2021, and a 49% decrease from the 1,279 active listings on the market a year prior in December 2020.
Victoria Real Estate Board President David Langlois commented on the 2021 year saying, “We leave this year with the lowest number of properties for sale that we have had on record – but with such strong demand that most transactions see multiple offers”.

Predictions for 2022

Victoria continues to attract more people amidst the pandemic. Year-round temperate climate, endless outdoor activities, and endless green space have become top priorities for many individuals and families as a result of Covid.
In addition, the return of tourism is expected to bring in 350 cruise ships in 2022. RE/MAX Canada expects a steady price growth across Canada in 2022, Victoria being no exception.

Inter-provincial migration and the ongoing housing supply shortage putting upward pressure on prices are the key drivers of the expected increase. RE/MAX Canada expects a 9.2% percent increase in average residential sale prices across Canada. In BC specifically, the Canadian Real Estate Associate predicts a 7.2% increase in median home prices.
Experts agree it will continue to be a seller’s market. Although chatter around increased interest rates has started, they continue to remain at record lows.