2023 Market Recap and Predictions
We started the year at a slow pace, as everyone was adjusting to the new normal of higher mortgage interest rates. Prices hit their bottom in the winter of 2022 and were slowly starting to rebound at the beginning of 2023. The inventory of homes for sale across the region has remained low all year, while the number of buyers shopping for real estate has also dropped due to the higher borrowing costs. The result has been stable prices and balanced market conditions across the board.
We are seeing more sellers list their homes for sale first before buying, and buyers are making subject-to-sale offers as well. Most offers have conditions, and the balanced market affords people the time and space to make decisions thoughtfully. The rental market continues to be incredibly competitive, and rental rates are sky-high across the region. The average rent for a 1-bedroom place is $2100/month, while an average 2-bedroom is renting for $2800/month.
We expect to continue to see fewer active listings through 2024 because many homeowners will opt to stay where they are when their mortgages come up for renewal. Victoria is unique because we have many homeowners who do not have a mortgage; therefore, some market segments are less impacted by interest rates.
If the interest rates go down in 2024, we could see a strong surge of buyers re-enter the market, which will cause a competitive housing market again. If you or someone you know has a mortgage coming up for renewal in 2024 or 2025, it’s not a bad idea to speak with a mortgage professional early in the process to discuss options. If you need a recommendation, feel free to contact us!