Posts Tagged ‘housing supply’

More listings do not always mean lower prices. It can feel that way at first because buyers suddenly have more choice, homes may take longer to sell, and sellers may need to compete harder for attention. But inventory is only one part of the pricing picture. In Greater Victoria, price movement depends on the relationship between supply, demand, property type, location, condition, and seller motivation. More listings can create more balance, but they do not automatically create a falling market. According to the Victoria Real Estate Board, active listings have increased in recent months, while benchmark prices have shown only modest year-over-year changes depending on property type and area. In April 2026, the Victoria Core single-family benchmark was down 1.2% year-over-year, while the condo benchmark was down 0.8% year-over-year. Inventory Gives Buyers More Choice When more homes come to market, buyers usually gain more breathing room. They may have: More properties to compare More time to make decisions More room to negotiate on terms Less pressure to compete on every listing More confidence walking away from homes that do not fit This matters. A market with more listings often feels different from a tight inventory market. Buyers may become more selective, and sellers may need stronger pricing, preparation, and presentation. But more choice does not always mean buyers suddenly have more purchasing power. Demand Still Matters Prices tend to soften when supply rises and demand weakens at the same time. If more listings come to market but buyer demand remains steady, prices may hold. If desirable homes are still limited in certain areas, buyers may continue to compete for the best options. A market can have more total listings while still having limited supply for specific buyer needs, such as: Detached homes in walkable neighbourhoods Well-maintained townhomes Family homes near schools Updated condos in strong buildings One-level homes for downsizers Properties with suites or income potential This is why broad inventory numbers can be misleading. The market may look well supplied overall, while certain segments still feel tight. Not All Listings Compete With Each Other A luxury waterfront home, a downtown condo, a Langford townhome, and a Saanich family home do not all compete for the same buyer. More listings in one category do not automatically affect prices in another. If condo inventory rises, that may not change demand for detached homes in Oak Bay. If rural properties take longer to sell, that does not necessarily mean entry-level townhomes will drop. Greater Victoria is made up of many smaller markets. Price behaviour can change by: Municipality Neighbourhood Property type Price range Condition School catchment Walkability Strata health Renovation level Lot size or development potential This is why local context matters more than the headline number. Sellers Adjust Before Prices Drop When listings increase, the first change is often not price. It is seller behaviour. Sellers may need to: Price more realistically Prepare the home more carefully Improve photos and presentation Respond faster to feedback Be more flexible with dates or terms Adjust expectations around days on market Some sellers will reduce their price if they overshoot the market. Others may hold firm if their property is well-positioned, properly priced, and in a category where demand remains strong. More listings can create pressure. But pressure is not the same as a price drop across the board. Buyers Still Care About Quality In a market with more choice, buyers do not simply buy the cheapest home. They often become more careful. They compare condition, layout, building records, neighbourhood, future maintenance, and resale potential. A well-presented home can still stand out, even when there are more listings available. For sellers, this means preparation matters. A home that feels clean, cared for, and easy to understand may attract stronger interest than a similar home that feels tired or overpriced. For buyers, this means patience helps, but waiting for prices to fall may not be the best strategy if the right home appears and the numbers work. More Listings Can Create a Healthier Market A market with more listings is not always bad news. In many cases, it creates a healthier environment. Buyers can make decisions with less pressure. Sellers get more realistic feedback. Negotiations may become more balanced. Conditional offers may become more common. Everyone has a little more room to think. That can be a positive shift, especially after years where low inventory made the process feel rushed. The Bottom Line More listings do not always mean lower prices because real estate is not one single market. Inventory matters, but it must be weighed against demand, location, property type, condition, price range, and buyer motivation. For buyers, more listings can mean better choice and stronger negotiating conditions. For sellers, it means strategy matters more than assumption. The best results usually come from reading the specific micro-market, not reacting to broad headlines. For advice on buying or selling in Greater Victoria’s current market, contact Faber Real Estate Group for clear, local guidance before making your next move.   Raymond S., 5-Star Review, via Google “Cal and his team at the Faber Real Estate Group went above and beyond in helping us to find a home that would meet our criteria. We always felt as though we were their most important clients. Cal and Scott's negotiating skills helped us to stay within our budget and still fulfill all of our requirements. Besides the teams professionalism and knowledge, we also appreciated their honesty and high standards regarding moral values. Cal and the team helped make buying a home a pleasant experience.” Faber Real Estate Group Royal LePage Coast Capital Realty 📞 250-244-3430 📧 [email protected] ℹ️ Scott Faber Personal Real Estate Corporation ℹ️ Cal Faber Personal Real Estate Corporation Vanessa Wood, Zachary Parsons, and Sophie Taylor “Building Lasting Relationships, One Home at a Time.”

How Affordable Is Housing in Victoria? A Smart, Honest Look at Today’s Market When people talk about Victoria, they talk about charm: tree-lined neighborhoods, ocean breezes, heritage character, and a lifestyle that feels a little bit magical. But there’s another conversation happening just as often: Is housing in Victoria still affordable? As real estate professionals immersed in this market every day, our goal is to bring clarity to a topic that naturally sparks confusion, frustration, and sometimes hope. Housing affordability in Victoria isn’t a simple yes or no question. It’s a mix of economics, supply and demand, demographics, and long-term trends that shape how people live and invest here. Let’s break it down, intelligently and honestly. Understanding Victoria’s Affordability Problem: It Starts With Supply Victoria is small. Hemmed in by the ocean, strict zoning, and limited land, our region has one of the tightest supplies of housing in the country. Even when demand cools, the underlying shortage keeps prices resilient. A low supply doesn’t just mean fewer homes for sale, it also impacts rental inventory. Victoria’s rental vacancy rate typically sits well below 2%, which is far below the 3–5% considered “healthy.” A tight rental market naturally pushes people to consider buying sooner, which adds pressure to the ownership market as well. When supply is constrained, and demand remains steady or grows, prices stay elevated. That is exactly what we’ve seen over the last decade. Demand Isn’t Just Local Victoria isn’t a city that grows accidentally; people move here on purpose. The region attracts: Retirees seeking a mild climate Professionals relocating for government and tech jobs Nurses, remote workers, and families looking for balance Investors recognizing the stability of the Vancouver Island market This diverse demand base keeps competition strong across all housing types. Even when interest rates rise, Victoria typically sees delayed moderation because the local buyer pool is not the only buyer pool. For affordability, this means locals are not just competing with locals — they’re competing with national and sometimes international interests. Understanding these buyer dynamics is key to understanding why prices stay high. Is Victoria Affordable? It Depends on Who You Ask Here’s where the conversation becomes nuanced. For First-Time Buyers:Affordability is the biggest challenge. Detached homes often feel out of reach, which is why demand has surged for condos, townhomes, and “missing middle” housing. Creative solutions like shared ownership, entering the market with a condo first, or purchasing in emerging neighbourhoods have become essential strategies. For Move-Up Buyers:Those who already own property may find Victoria quite manageable, thanks to equity gains. Many homeowners are leveraging strong appreciation from the past five to ten years to move into their next property with confidence. For Investors:Victoria remains one of the most stable rental markets in Canada due to extremely low vacancy rates and strong tenant demand. From a cash-flow perspective, investors must run numbers carefully, but from a security standpoint, the market is very attractive. The Real Question: Is Victoria’s Market Sustainable? Affordability challenges don’t disappear overnight, but we are starting to see shifts: More inventory is coming online than we’ve seen in years The city’s housing strategy continues to push for higher-density and missing-middle projects Changing interest rates are moderating rapid price increases These factors work slowly, but they do work. Victoria is unlikely to become “cheap,” but there's a real possibility it will become more balanced, giving more people a fair opportunity to enter the market. Victoria May Be Expensive, But It’s Also Worth Understanding Affordability is a challenge, yes. But knowledge is power. When you understand why Victoria’s market looks the way it does, you can make smarter, more strategic decisions whether you’re buying, selling, investing, or simply planning ahead. Our role is to help you navigate this complex landscape with clarity, confidence, and a strategy that aligns with your goals. Victoria may not be the cheapest market in Canada, but with the right guidance, it can absolutely be one of the most rewarding. If you ever want to explore your options, compare neighbourhoods, or understand current trends, we’re always here to help you make the smartest move possible. Faber Real Estate Group Royal LePage Coast Capital Realty 📞 250-244-3430 📧[email protected] ℹ️ Scott Faber Personal Real Estate Corporation ℹ️ Cal Faber Personal Real Estate Corporation Vanessa Wood & Zachary Parsons "Building Lasting Relationships, One Home at a Time."