Greater Victoria' real estate market is a dynamic and ever-changing landscape, with countless factors influencing its performance over time. For those interested in Victoria's housing market, it's essential to understand how individual municipalities have fared over the past ten years. In this blog post, we'll explore an interactive graph that highlights the historical performance of single-family home median prices in 10 of the most popular neighbourhoods in Greater Victoria. From Sidney's and the Westshore's (Langford and Colwood) impressive rise to the continued dominance of Oak Bay, the data tells an intriguing story.
While there were notable shifts and changes throughout the ten-year period, the top four; Oak Bay, North Saanich, Saanich East, and City of Victoria, held onto their positions consistently. Oak Bay claimed the #1 spot, retaining its desirability as a prestigious residential location. North Saanich secured #2, known for its scenic views and tranquil rural lifestyle. Saanich East held steady at #3, offering a diverse range of housing options and limited new construction, while Victoria proper remained strong at #4, with its rich cultural heritage and urban amenities.
Which is defined as January 2013 to Dec 31st 2019. The top performers are:
Which is defined as January 2020 to Oct 31st 2023. The top performers are:
Which is defined as January 2013 to Oct 31st 2023. The top performers are:
It is clear that regardless of the timeframe, that the Westshore (Langford and Colwood) along with its more affluent and established counterparts, Oak Bay and Sidney/North Saanich, offer the best compound annualized growth rate(CAGR).
Oak Bay consistently maintained the highest median sale prices on Southern Vancouver Island, with a price of $750,000 in 2013. By the end of 2019, it had grown to $1,200,000, and by 2023 Q3, it reached $1,867,950.
In terms of annualized return, Oak Bay flexed its strength as the best performing neighbourhood during the pandemic generating a 10.67% return from 2020-2023.
Oak Bay has a reputation for being an upscale and affluent community. It is often associated with luxurious properties, historic homes, and well-preserved heritage architecture. This prestigious image has attracted buyers looking for high-end living options.
In 2013, North Saanich's median sale price stood at $640,000. By December 31, 2019, it had grown to $950,000, and by 2023 Q3 it had reached an impressive $1,558,000. Over the past 10 years the municipality saw annualized capital appreciation grow at a rate of 8.86%.
North Saanich has been diligent in controlling and regulating development, which has limited the supply of available properties. This scarcity of housing has contributed to rising property values, as demand outstrips supply. North Saanich has a reputation for being an affluent and upscale community. The area is home to luxurious properties and agricultural estates, attracting high-net-worth individuals and those looking for premium real estate options.
Saanich East saw its median sale prices increase from $584,000 in 2013 to $880,000 by the end of 2019, and then continuing on post-COVID it rose to $1,297,500 by Q3 2023. Home prices in the area rose 7.71% on an annualized basis over the past 10 years.
Saanich Each combines urban amenities with a more suburban atmosphere. It offers the best of both worlds, with proximity to city conveniences and access to natural parks and green spaces. Saanich East is known for its excellent educational institutions, including the University of Victoria. The area is also home to affluent neighbourhoods like Ten Mile Point, Cordova Bay, Broadmead, and Cadboro Bay.
Victoria's median sale prices showed a consistent upward trajectory, going from $550,000 in 2013 to $875,000 in 2019 and $1,230,000 in 2023 Q3. Home prices in the area rose 7.77% on an annualized basis over the past 10 years.
City of Victoria's real estate market has demonstrated stability and resilience over time, making it an attractive option for long-term investment. Victoria has experienced economic growth, attracting a diverse range of job opportunities in sectors such as technology, government, healthcare, and education. A strong job market has driven demand for housing. The Urban nature and coastal geography put a constraint on new developments, with most new construction being urban infill.
From 2013 through to 2018, Sidney underwent a remarkable transformation in the housing market. It surged from the 8th position to the 5th, marking a significant improvement in its performance, with an 8.81% CAGR from 2013 to 2019. In dollar terms, the median single family home in 2013 was $435,000 and quickly rose to $757,500 by the end of 2018. Home prices in the area rose 8.40% on an annualized basis over the past 10 years.
This can be attributed to various factors, such as its proximity to the airport, BC ferries (Swartz Bay Terminal), the charm of its waterfront properties, and its growing appeal as a retirement destination. However, after 2018, Sidney did not appreciate as quickly as the Westshore municipalities of Langford and Colwood which experienced meteoric growth, pulling ahead in the rankings.
Langford and Colwood, often collectively referred to as the Westshore, became the showstoppers in the latter half of our ten-year review. Following 2018, these municipalities outperformed most of their counterparts and made significant gains in their housing market performance, creating a stark contrast to Sidney's dip. A burgeoning tech sector, increased amenities, large scale masterplanned developments, and a robust 'get it done' community atmosphere likely played a role in this impressive ascent.
Saanich West's median sale prices followed a steady upward trend, with prices rising from $490,000 in 2013 to $749,000 by 2019 and $1,096,000 by 2023 Q3. ome prices in the area rose 7.78% on an annualized basis over the past 10 years.
Saanich West has a more suburban and laid-back vibe compared to Saanich East. It offers a quieter and more relaxed living environment. The area has more open spaces and rural areas, making it a popular choice for those who appreciate a more natural and spacious setting. Even with its rural setting and agricultural heritage, Saanich West is still well-connected to urban amenities and services in the Greater Victoria area.
Esquimalt's median sale prices have shown consistent growth, hovering around $1M for the past 3 years. Its proximity to downtown Victoria and seaside charm have made it an attractive choice for homeowners. Home prices in the area rose 7.54% on an annualized basis over the past 10 years.
Regarded as one of the more affordable regions on the Capital Region. Esquimalt does provide growth and capital appreciation, but in recent years has been struggling to keep up with the pace of Saanich, Langford, Colwood, and Sidney.
Sooke has remained an affordable option for homebuyers, with a median price of $899,999 in 2023 Q3, the lowest in our study. This affordability, combined with its picturesque setting, has made it a destination for those seeking a tranquil back country lifestyle. The municipality continues to holds last place in dollar terms of our list of heavyweights over the past 10 years. In terms of compounding annualized growth rate (CAGR) Sooke homes generated 7.54% over the past 10 years. However, still provides an excellent return on investment, being attractive for its lower costs of entry.
Dustin Miller is the managing broker of 8X Real Estate. When he's not on the road, he is on his computer looking at real estate. You can often find Dustin at his office enjoying a bowl of won-ton soup.
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