Market Insight Series

What does the current Victoria real estate market look like?

As part of our monthly Market Insight Series, I am excited to continue to bring you regular insights into the Victoria and Vancouver Island market trends, so you can make better buying and selling decisions. Below I will jump into the most important market numbers to look into, I will provide glossary term definitions, and will conclude with resources if you want to further research current trends and stats. If you want to see what the Market Insight for the previous month was, click here.

Steady. Balanced. And Holding Its Ground.

Let’s break this down and look at the numbers because that’s where the real story is. We’re talking about the Victoria real estate market in March 2025.

First, let's look at single-family homes. A total of 292 homes sold last month, up 2.1% from March 2024. The benchmark price for a single-family home in the Victoria Core now sits at $1,335,300. That’s a 3.6% increase from the previous year and a slight bump from February's price of $1,309,500. These are solid numbers, showing that while there’s some uncertainty in the economy, people are still willing to buy, and prices are holding up.

Next up, condos. We saw a real surge here, with 202 units sold, a 14.1% jump compared to March 2024. The benchmark price for a condo in the Victoria Core is now $560,400, up 0.4% from last March and an increase from February’s value of $551,900. Condos are trending, and the market is pushing forward in this segment.

Now, let’s talk about townhomes. We saw 79 townhomes sold, a modest 1.3% increase over the same month last year, with the benchmark price landing at $858,000.

Across the board, 613 properties were sold in March 2025, which is up 4.3% from the same time last year and 16.1% from February 2025. So, sales are moving, and there’s definitely activity in the market.

Inventory is up, too, sitting at 3,023 active listings at the end of March 2025. That’s a 14.9% increase from February and a 14.2% rise compared to last year. So, there’s more selection and a stable market, giving buyers and sellers more predictability, at least in the local market. That’s a good thing in this economic climate.

The big takeaway is that the local real estate market is stable and balanced despite global uncertainty. We’re not seeing the crazy spikes from previous years, but there’s enough movement that people are still buying, selling, and making deals. If you’re in the market, prices are steady, but you’ve got to be strategic. Homes priced right and presented well are still moving quickly—sometimes even seeing multiple offers.

Global Market Updates

April 10th, 2025 Update: President Trump announced he is increasing tariffs on China to 145%.

April 9th, 2025 Update: President Trump announced he will set a 90-day pause on reciprocal tariffs for all targeted countries except China, which will see tariffs rise to at least 125%. Other countries will still receive a baseline tariff of 10% until bilateral trade agreements can be negotiated. Canada is not directly affected since the new reciprocal doesn't include Canada or Mexico.

The above healthy real estate activity is the current good news story. The bad news is that we still don't have any certainty or predictability regarding US trade tension. I hoped we would understand where this is all heading by April once the drama of America's reciprocal tariffs had landed (or been tamped down). However, with escalating tensions between China and the US and the most recent confirmation of a 104% tariff falling on China, it doesn't seem like international market uncertainty will calm down anytime soon.

Fortunately, Canada is fairing much better than it might have been, with limited tariffs on steel & aluminum, automotive, energy, and those goods and services that aren't yet exempted under CUSMA. With the above in mind, energy has a limited 10% tariff, automotive tariffs are incredibly harmful to US producers and consumers given our integrated automotive industry and probably won't hold up for very long, and steel & aluminum tariffs lasted less than 1 year the last time they were placed on Canada. Additionally, it's worth pointing out that the US has placed tariffs on more than 180 countries/territories, seemingly aiming at China as enemy #1. With so many different targets and an extremely heated exchange escalating between China and the US, it seems likely that President Trump will be willing to broker a deal with Canada soon to begin reigning in the market collapse at home. However, with so much global market volatility, the real question remains: how long will US trade aggression remain, and what impact will it have on the US and global economy? Market analysts anticipate an increasing risk of recession in the US, Canada, and the global economy.

What remains in the interim is instability and uncertainty. The current trade aggression could wind up quickly or stay with us for a long time, meaning the local real estate market could still trend up or down. However, the longer the current trade circumstances persist, the more likely Canadian and local real estate will begin trending down.

If you want to sell your home this year, you may want to get in the market now while buyers are still motivated and prices remain stable. Otherwise, you may need to hunker down for a while. The market could still go in either direction, but the downside risk of waiting to sell is probably a bit higher.

If you are a buyer, the wait-and-see approach could get you a good deal, but it might also mean you end up paying more money if current trade tensions evaporate. Again, as a buyer, the upside opportunity of waiting is slightly higher. However, there's little certainty on where things will go next. Just be mindful of the risk you can control versus the risk you can't. If you have a secure income source and have the proceeds to buy comfortably with a plan to own for the long term, you don't need to hesitate as much about when to buy a home. If you're out of the market, it's generally better to be in, at least in the long term. However, if you're self-employed, have a less secure income source, or are stretching your budget to get in the market, it's probably better to pause, consider your options carefully, and take the necessary time before jumping in.

So, bottom line: it’s a good time to buy or sell, but you need to be smart and work with a solid Realtor to navigate this market. You’ve got options, but you’ve also got to be sharp.

Opportunities for ordinary people looking to get into their first home, or move up into an affordable nicer home are still out there, it just takes a bit of diligence, and ideally the support of a committed agent.

Conclusion

The goal is to give you insight into what the overall market view looks like in Victoria and Vancouver Island. I have included more Resources below so that you can dive in and read more at your leisure. I will also make sure to include a new Glossary Term each month, and define it to add to your knowledge of common industry terms.

Feel free to contact me if you want to learn more or if you have any questions about the broader market trends.

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Glossary Term

REIT (Real Estate Investment Trust)

REIT (Real Estate Investment Trust): A company that owns, operates, or finances income-generating real estate assets, often traded on stock exchanges. It's like holding a high dividend-yielding stock, where the underlying business generates revenue by owning, managing, and leasing/renting out property.

https://www.inman.com/2024/01/15/public-reits-vs-private-reits/