Interest rates slow Victoria’s real estate sector early

It’s a strange time for the real estate industry, which is a major contributor to Greater Victoria’s economy. The winter typically brings a slow down, but high interest rates and uncertainty about the future are chilling activity in our region and across the country.

“Overall, property sales drifted down in October compared to the previous month, likely due to consumers continuing to navigate interest rates higher than those seen in nearly two decades,” Victoria Real Estate Board Chair Graden Sol said. “The uncertainty around the direction of the Bank of Canada rate announcement in mid-October may have caused some buyers to push their purchasing plans into the future because it was unclear if rates were going to be hiked again or remain stable.”

VERB said sales were down 15.2% in October compared to the same month last year. Total listings have increased by 25.7% over the same time. Meanwhile, the benchmark value for a single family home in the region’s core in October was $1,305,900 — up 3.9% from October 2022.

“Greater Victoria typically fares better than many other regions during economic downturns because of our diversity of sectors,” Chamber CEO Bruce Williams said. “We have a large public sector, for example, that relies on the services and goods of other industries. What we’ve seen in the past is that those who can, lend support to those in need. This current situation will pass, but let’s remember to exercise compassion and kindness in the spirit of supporting our local economy.”