February 2025 Market Update

The Victoria real estate market demonstrated robust activity in February 2025, continuing the positive trends observed earlier in the year. Here's a detailed overview of the market's performance:

Sales Activity

• Total Property Sales: 528 properties were sold in the Victoria Real Estate Board (VREB) region in February 2025. This marks a +12.3% increase compared to the 470 properties sold in February 2024 and a +25.1% rise from January 2025. ‍
• Condominium Sales: 192 units were sold, representing a 26.3% year-over-year increase.‍
• Single-Family Home Sales: 234 units were sold, reflecting a 4.5% increase from February 2024.

Inventory Levels

• Active Listings: At the end of February 2025, there were 2,630 active listings on the VREB Multiple Listing Service®, a 9.8% increase from January 2025 and an 11.3% rise compared to February 2024.
  
  Inventory remains elevated compared to recent years, but is in line with 10-year averages. This number will be important to watch in the coming months to see the response and effect of falling interest rates, mortgage renewals, and economic uncertainty.
  
  There were more than 1,000 new MLS listings during the month. Condo listings were above their typical average by 22% with 374 new listings.
  
  Inventory levels are broken down by single family (916), condos (708), and townhomes (219).

Median Prices

• Single Family Homes: The median price for a single family detached home came in at $1,140,000, up 1.3% from the same time last year. We continue to see stability in demand for entry level single family. The $950 - $1.2M price range remains one of the most competitive, with quality product located in the core gathering multiple offers and often selling within days or hours.
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• Condominums: The median price for a condo at the end of February 2025 was $562,5000 up 5.1% compared to the same time last year. While this looks promising, this stat is a bit deceiving. The reason why the median is going up is because the sale mix is changing; more of the sales are for 2-bedroom owner occupier units. Downtown studios and 1-bedroom condos are very slow with little activity even with much cheaper prices than a few years ago. Buyers are looking for a larger units, newer buildings, and locations outside downtown.
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• Townhomes: The median price for a townhome came in at $794,500, which is flat compared to last year.

Market Insights

The steady increase in both sales and inventory suggests a balanced market, offering favorable conditions for both buyers and sellers. According to VREB Chair Dirk VanderWal, the combination of growing inventory and increased sales indicates market stability. He also noted that well-presented and appropriately priced properties are more likely to succeed in the current market.

As we approach the typically active spring market, it's anticipated that more inventory will become available to meet consumer demand. However, potential changes in global economic policies could impact the local market, making it essential for buyers and sellers to stay informed.

Conclusion

February 2025 showcased a resilient and balanced real estate market in Victoria, with rising sales and inventory levels contributing to stable pricing. Whether you're considering buying or selling, it's crucial to understand these trends and work with a knowledgeable REALTOR® to navigate the evolving market landscape effectively.

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