Buyer fatigue and interest rate hikes take some heat out of Greater Victoria’s tight real estate market as aggregate home price rose 24.4% year-over-year in first quarter of 2022.
According to the Royal LePage House Price Survey released today, the aggregate1 price of a home in Greater Victoria increased 24.4 per cent year-over-year to $1,053,700 in the first quarter of 2022. During that same period, the median price of a single-family detached home increased 24.0 per cent to $1,249,600, while the median price of a condominium increased 9.5 per cent to $527,700.
“While supply remains far too low to satisfy unmet demand, buyer fatigue is starting to affect activity,” said Neil Bosdet, sales representative, Royal LePage Coast Capital Realty. “Competition in the market has reduced, although it remains historically tight. Demand has been impacted by rising interest rates, the increasing cost of consumer goods and the introduction of a five-day cooling off period in the province. Rather than 12 offers, a listing may receive four or five. Multiple-offer scenarios remain common, but with fewer parties coming to the table.”
Bosdet noted that the market is far from being balanced, but it is moving in the right direction.
“I expect we will see a brisk spring market as additional inventory becomes available. Looking forward to the rest of the year, it is likely price appreciation will begin to return to pre-pandemic levels,” said Bosdet.
Nationally, the aggregate price of a home in Canada increased 25.1 per cent year-over-year to $856,900 in the first quarter of 2022; the highest gain on record since the Company began tracking aggregate prices. As strong buyer demand continues to outpace supply in almost every market from coast to coast, Royal LePage is forecasting continued strong seller’s market conditions this spring.
“Entering 2022, we had anticipated a strong first half, and moderating real estate markets thereafter. Call it buyer fatigue or easing demand, these periods of uncomfortably high home price appreciation do run their course. We are seeing the first signs of moderation in some regions, as more inventory is becoming available and competition eases slightly,” said Phil.
Soper, president and CEO of Royal LePage. “The first quarter of the year was so strong, however, that we are bumping up our 2022 outlook. And, home prices will continue to climb in the months ahead as a result of our relentless low supply-high demand imbalance.” The Royal LePage National House Price Composite is compiled from proprietary property data, nationally and in 62 of the nation’s largest real estate markets. When broken out by housing type, the national median price of a single-family detached home rose 26.7 per cent year-over-year to $906,100, while the median price of a condominium increased 19.7 per cent year-over-year to $612,900. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company. Royal LePage is forecasting that the aggregate price of a home in Canada will increase 15.0 per cent in the fourth quarter of 2022, compared to the same quarter last year. The previous forecast, released in December, 2021, has been revised upward to reflect the continued strength of the market through the first quarter of the year.
Note: Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions and includes both resale and new build prices.
View the Royal LePage National House Price Composite in the First Quarter of 2022.
