Both Victoria and Nanaimo have seen rising inventory levels and a steady increase in new listings, signalling a shift toward a more balanced market. While home prices remain elevated, slower sales and extended days on market indicate that buyers are exercising caution, likely due to economic uncertainty and high borrowing costs.

The Bank of Canada’s recent 25 bp rate cut was expected to provide some relief to borrowers. However, the reduction was too small to significantly stimulate the housing market, leaving affordability challenges in place. Furthermore, with the U.S. imposing 25% tariffs on Canadian exports, economic pressures are mounting. These tariffs could lead to job losses, reduced consumer confidence, and further economic strain.

Victoria Market Trends

• Sales increased year-over-year but remain moderate compared to previous strong markets.
• Active listings and new listings grew, providing buyers with more options but also increasing competition among sellers.
• Home prices are resilient, but the longer time to sell suggests buyers are hesitant, waiting for better affordability.

Nanaimo Market Trends

• Inventory remains high, but new listings continue to climb, putting pressure on pricing.
• Sales volume dropped, suggesting demand is slowing under economic uncertainty.
• Homes are taking longer to sell, indicating a shift toward a buyer’s market.

Conclusion: The Need for a Larger Rate Cut

While the Bank of Canada’s recent rate cut was a step in the right direction, it falls short of what is needed to counteract the affordability crisis and stimulate market activity. The 25% tariffs imposed by the U.S. add another layer of economic risk, especially in sectors like manufacturing, forestry, and trade—industries that are vital to both Vancouver Island and British Columbia’s overall economy.

Without a more aggressive rate cut, housing activity may continue to slow, leading to longer selling times and potential downward pressure on prices. Buyers and investors are watching interest rates closely, and a more significant cut would provide the confidence needed to re-enter the market.

Information in the charts above using the VREB and VIREB statistics calculator provided to determine month-to-month reports on residential units in the Greater Victoria and Nanaimo regions. I use the overall average statistics to determine the monthly price of sales.

WHAT IS IN THE NEWS

Why do Assessed Values and Selling Prices differ for BC Homes?

What an Assessment Reflects

Assessments provide a “holistic approach” to property valuation, considering:

• Unique property factors: Location, size, age, views, garages, decks, and other features.
• Market data: Comparable prices and other real estate trends.
• Additional inputs: Building permits, land titles, recent transactions, owner updates (optional to report), and aerial imagery.

Key Insights for Property Owners

• If your assessment value drops slightly, it isn’t necessarily negative, as it could result in lower property taxes if you’re staying put.
• For those buying or selling, market value—a property’s price under current conditions—becomes more relevant.

Market Value vs. Assessed Value

Realtors set a property’s sale price by analyzing:

1. Comparable market data: Recent sales (within the last year) in the area.
2. Seller motivations: Personal or financial circumstances such as illness, divorce, or rising interest rates.

In rare cases, properties sold below their assessed value will attract buyers in slower markets or due to urgent personal or financial reasons.

Hiring a realtor ensures a comprehensive evaluation of your property, including:

• A walkthrough of the home’s interior and exterior.
• Consideration of updates, superior finishes, high-end appliances, or professional design work, which can positively influence the market value.
• To set an accurate price, realtors aim to compare “apples to apples,” analyzing how similar homes in the area have performed. While sellers generally want a price above the assessed value, the market and home conditions ultimately guide the pricing strategy.

Dr. Dustin Pearson, Scientific Operations Manager of Evict Radon, discusses what radon is, how it affects BC residents and how it leads to cancer. Dr. Pearson uses recent studies to help underscore the problem of radon within residences, how to test for radon, and how society has to invest in fixing this problem.

What Buyers and Sellers Need to Know about Disclosing Radon testing

Property owners are not required to conduct radon testing of their properties. Still, sellers are encouraged to disclose in writing (for example, in the Property Disclosure Statement) whether they have carried out any radon testing and, if so, what the results were.

Since April 2020, Property Disclosure Statements have included the following questions for sellers:

V. To the best of your knowledge, have the Premises been tested for radon?

(i) If yes, when was the most recent test completed and what was the most recent level of radon detected:

Level:_____________ □bq/m3 □pCi/L on ______________________ Date of test (DD/MM/YYYY)

W. Is there a radon mitigation system on the Premises?

(i) If yes, are you aware of any problems or deficiencies with the radon mitigation system?

Under BCFSA guidance implemented in September 2019, sellers’ agents (or landlords’ agents) who learn that the home has been tested for radon and radon levels exceeded 200 Bq/m3 have a separate obligation from that of the sellers to disclose this to potential buyers or tenants as BCFSA considers such levels to constitute material latent defects.

If purchasing a property where a seller has disclosed prior radon testing results, buyers may consider whether those results are relatively recent or whether the seller has renovated the property since the testing was done, as such work may have impacted the radon gas levels in the home.

*** If the seller has disclosed test results exceeding 200 Bq/m3, buyers may wish to consider options such as a price reduction, a holdback for remediation by a radon professional, and/or looking at other homes.

Through the collaborative efforts between BCREA and RTB, changes took effect on Wednesday, January 22, 2025.

Here's a comprehensive overview of these changes:

1. Notice Periods for Ending Tenancy Due to Sale

• Three-Month Notice (RTB-32P):
• If a landlord sells a rental property and the purchaser, or a close family member of the purchaser, intends to occupy the unit, the landlord can issue a Three Month Notice to End Tenancy for Purchaser's Use (RTB-32P). This notice can only be given if the purchaser provides a written request to the seller stating their intention to occupy the rental unit before taking possession of the property. It's important to note that serving this notice cannot be a condition of the sale.

• Four-Month Notice (RTB-32L):
• Alternatively, once the purchaser has taken possession and become the new landlord, they can serve a Four Month Notice to End Tenancy for Landlord's Use (RTB-32L) to the tenant if they, or a close family member, intend to occupy the rental unit.

2. Compensation for Tenants

• When serving either the three-month or four-month notice, the landlord must compensate the tenant with an amount equal to one month's rent. This compensation is due on or before the effective date of the notice period. Tenants have the option to apply this compensation towards their last month's rent.

3. Tenant's Right to Dispute

• Tenants have the right to dispute a notice to end tenancy:
• For a Three Month Notice (RTB-32P), tenants must apply for dispute resolution within 21 days of receiving the notice.
• For a Four Month Notice (RTB-32L), tenants have 30 days to apply for dispute resolution after receiving the notice.

4. Definition of "Close Family Member"

• The term "close family member" refers to the individual's parent, spouse, or child, or the parent or child of that individual's spouse. It does not include other relatives, such as siblings.

5. Mandatory Use of RTB Web Portal

• All notices to end tenancy for purchaser's or landlord's use must be generated using the Residential Tenancy Branch's (RTB) web portal. Notices not generated through this portal are considered legally unenforceable.

6. Occupancy Requirements

• The purchaser or their close family member must intend to occupy the rental unit for residential purposes. "Occupy" means to use the rental unit as living accommodation or as part of their living space.

For more detailed information or specific inquiries, it's advisable to consult the Residential Tenancy Branch (RTB) or seek legal advice to ensure full compliance with the updated regulations.

A proposal that could deliver Victoria’s tallest building has been revealed by Vancouver-based developers Reliance Properties and Crosstown Properties for 1520 Blanshard Street in the Victoria's downtown core.

Read more

Consider incorporating my services if you, your family, or your friends are exploring real estate transactions in the current market. I'm here to assist you or them in discovering the ideal home or confidently selling your property.

Contact: (250)888-7042

Email: dastyk@shaw.ca