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Victoria Real Estate Recap: 2023 in Review
Greetings, Victoria! As the curtains draw on another eventful year, let’s take a stroll down memory lane through the lanes and listings that defined Victoria’s real estate scene in 2023.
By the Numbers: Local Market Insights
Numbers paint a vivid picture, and 2023 had its own unique canvas. Over 2023 we saw the numbers of listings in Victoria rise, getting close to a balanced market. This meant buyers had more time and choice in inventory.
Comparing November 2023 with November 2020, we can see the dramatic contrast in our market.
November | 2023 | 2020 |
Properties Sold | 394 | 795 |
Active Listings | 2644 | 1813 |
SFD HPI | $1,286,400 | $903,100 |
Condo HPI | $577,400 | $516,600 |
Bank of Canada's Interest Rate Rhythms
The Bank of Canada interest rate hikes had a deep resounding impact on the real estate market. Every rate hike meant that thousands of Canadians mortgages cost more, and thousands more Canadians no longer qualified to get a mortgage. This significant increase in cost for buying a home meant many people chose to wait, and many more had no choice but to wait. This past year of 2023 has represented the highest the Bank of Canada has set interest rates since the 1980’s when the rates rose to 20%.
Let’s look at what that means. Using RBC’s mortgage calculator and assistance from RBC mortgage specialist Chris Collins, we compared what the monthly payments and lifetime interest would be on a $800,000 mortgage paid over 25 years; one at today's 5 year fixed rate of 6.49% and and one at the 2020 fixed 5 year rate of 2.99%. The results: hundreds of thousands of dollars of interest. Over the 5 year term, the borrowers of the 2023 mortgage would end up paying $134,195.16 more in interest.
Comparison of 2020 and 2023 Interest Rates on a $800,000 Mortgage based on 5 year Fixed Term Rates
2020 at 2.99% | 2023 at 6.49% | |
Monthly Payment | $3781.87 | $5353.75 |
Interest Paid During Term | $110,577.06 | $244,772.22 |
Interest Paid During Mortgage | $334,556.70 | $806,118.91 |
The good news? There is murmuring everywhere predicting the interest rates will go down in 2024. As you can see in the table above, a 3.5% interest increase costs hundreds of thousands of dollars but the reverse is also true! When interest rates go down a few percentage points, that means people will be paying hundreds of thousands of dollars LESS in interest. Even with the high interest rates, we work with the best mortgage brokers and specialists in town. They will do everything possible to get you approved at the lowest rate they can. If you are needing a first mortgage, a renewal or just have questions, contact us and we can refer you to the best mortgage people in town!
Legislation Changes: Impact on the Scene
Provincial legislation changes played their part in the real estate theater. Adjustments aimed at nurturing affordability while ensuring market stability made their mark, influencing the decisions of both buyers and sellers in our vibrant market. The restrictions on short-term rentals have returned some condos to the market, adding to inventory for buyers. Perhaps the biggest change in provincial law was ending single family zoning in the province in an effort to increase the number of small scale multi unit dwellings. Keep your eyes out for an increase in townhouses, duplexes, fourplexes and more!
Technology in the Real Estate Market
2023 witnessed an ever more tech-savvy real estate realm. Virtual tours, augmented reality walk-throughs, and AI-powered tools took center stage, transforming the way we explore and experience properties in our quest for the perfect home. We have embraced all the technology that helps us better help our clients. Aerial photography and virtual tours are included in our services for sellers, along with the best professional photography.
A Sneak Peek into 2024
With 2023 leaving its mark, we stand on the brink of a new year, brimming with possibilities. The lessons learned, the trends observed, and the resilience showcased pave the path for an exciting journey in 2024. We are predicting a very busy spring market! While the Bank of Canada has said more interest rate hikes could be coming, there haven’t been any in months and economists everywhere predict conditions are ripe for those rates to drop. Looking into our crystal ball, we see everyone who has been waiting for interest rate relief springing into action in 2024, leading to increased inventory but also an increase in buyers. We also predict prices to continue to rise. If you are looking to buy, this winter may be the lowest prices with the most inventory we see for awhile. The only way to know for sure when the best time to buy or sell is, is to talk with a knowledgeable local expert to strategize your real estate plans.
In Conclusion: Cheers to Victoria’s Story
Here’s to the stories behind the stats, the community that shapes our market, and the innovative strides that propel us forward. 2023 was a chapter worth cherishing—a year that added depth to our real estate tale in Victoria.
So, let’s raise a toast to the memories made, the challenges conquered, and the adventures awaiting us in the unfolding pages of 2024!
Savanna recently joined ElderDog, a nationwide volunteer-driven organization devoted to assisting seniors in caring for their beloved canine companions. ElderDog operates through local branches across Canada, managed by community coordinators and supported by donations and fundraising efforts.
Volunteer dog walkers play a pivotal role, committing to regular walks within their neighborhoods. The program seeks both consistent walkers and substitutes for flexible support. This initiative boasts multifaceted advantages. For seniors facing health challenges or reduced mobility, having someone walk their dog ensures the pet remains in their home, offering vital companionship. Additionally, these walks often become a senior's key connection to the broader community.
Picture a senior, navigating life alone with mobility hurdles, and the profound impact of committed volunteers checking in regularly, some even daily. Volunteering to walk a dog stands as a powerful way to significantly enhance a local senior's quality of life. Moreover, amidst financial strains, this act of community service doesn’t strain the budget and offers the chance to forge new furry friendships!
Interested in discovering more or lending a paw to a dog in need within your neighborhood? Reach out directly to Savanna or ElderDog for further information
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