January 2025 Victoria Real Estate Stats and News

The Victoria real estate market is off to a strong start in 2025, with rising sales activity and a record-breaking number of new listings hitting the market. While demand remains steady, an increase in available inventory is providing buyers with more options than we’ve seen in recent years.

Here’s what happened in January:

Market Overview

📌 422 properties sold in January, marking a 23.8% increase compared to January 2024. Sales were also slightly up from December 2024 (+0.2%).
📌 Condo sales surged by 30.4% year-over-year, with 146 units sold.
📌 Single-family home sales climbed 19.8% year-over-year, with 194 sales in January.

A notable shift in the market was the increase in new listings—for the first time in over a decade, we saw more than 1,000 properties added to the Victoria Real Estate Board’s MLS® in January.

Inventory on the Rise

At the end of January, active listings sat at 2,395, which is:
✅ 4.6% higher than in December 2024
✅ 11.9% higher than January 2024

This rise in inventory is a positive sign for buyers who have been facing tight market conditions over the past few years.

8X anticipates an increase in inventory until the Spring Market peaks in May, 2025. However, building permit data suggests new home sales will be significantly lower as developers have held back on construction starts in 2024. The resale market will take a larger share of the market as new construction lags behind due to high costs, interest rates, and the shift towards purpose built rental projects.

January 2025 Median Prices

🏡 Single Family Homes

• Median price of $1,142,450 up 9.1% compared to same time last year
• Average price of $1,279,454 up 4.9% compared to last year
• 194 units sold up 19.8% from last year

🏢 Condominiums

• Median price of $549,500 up 1.7% compared to same time last year
• Average price of $625,897 up 7.9% compared to same time last year
• 146 units sold up 30.4% compared to last year

 🏘️ Townhomes

• Median price of $738,750 up 5.5% compared to same time last year
• Average price of $807,302 up 13.3% compared to same time last year
• 52 units sold up 44.4% compared to last year

Buyer optimism and the return to stronger sales figures is due to lower interest rates, with the Bank of Canada cutting it's key policy rate to 3.00% in its latest decision at the Jan 29th meeting. This is the 6th cut June, 2024. Canadian short-term bond yields tumbled. The two-year note’s fell nearly 20 basis points to a low of 2.45 per cent, last seen in 2022.

‍What This Means for Buyers & Sellers

‍📈 For Sellers:

• The market remains active, but pricing strategically is key as buyers now have more options.
• Well-priced properties in desirable locations are still moving quickly.
• Political uncertainty and broader economic threats could scare off buyers looking to make a large purchase. However, Victoria's stable job market and overall desirability will offer stability compared to other Canadian markets.

🏡 For Buyers:

• More listings mean more choice, but competition still exists for well-priced homes in the Victoria core.
• Interest rates continue to stabilize, improving affordability for many buyers.
• Political uncertainty may threaten job security, economic performance, and broader weakening in economic sentiment across the country.

Looking Ahead

‍According to Victoria Real Estate Board Chair Dirk VanderWal, the local market is showing strong fundamentals with stable pricing, growing inventory, and steady demand. However, as international economic factors evolve, it will be important to watch how external events impact the market in the months ahead.

‍Thinking of Buying or Selling in 2025?

‍Market conditions are shifting, and having a strategy is key. If you’re considering making a move, reach out to discuss your goals and how to navigate this evolving market with confidence.📩 Contact us today for expert guidance on your next real estate move!