Victoria Real Estate Market Update
The Canadian real estate market is experiencing both positive momentum and uncertainty. Here in Victoria, the market has proven to be among the most resilient in Canada, with stable home prices and sustained demand even as other urban centres experience more volatility. The Bank of Canada’s recent rate drop could help stimulate consumer spending and economic growth; however, ongoing trade negotiations and potential tariffs are creating consumer hesitancy and real concerns about the long-term effects on construction costs, home prices, and the overall economy.
As we head into fall, real estate inventory in Victoria remains healthy with a 12.8% increase compared to August 2024—providing more choice for home buyers.
If you’re looking to sell your home, properties are often taking a little longer to sell and we’re seeing more price sensitivity from buyers, especially for houses that require updating or have deferred maintenance. However, there are exceptions—we’re seeing multiple offers with strategically-priced single-family homes that are well-maintained and have undergone pre-listing preparation (decluttering, staging, etc.).
The pushback on homes requiring work is undoubtedly being affected by increased choice and uncertainty around renovation costs. Many homebuilding materials in Canada are sourced from the U.S., and if retaliatory tariffs increase costs, the impact could be significant. This uncertainty is also slowing new construction, as Victoria developers are hitting pause on new homes and multi-family developments.
Condominiums and townhomes have seen more significant softening, with increased inventory in both categories compared to August of last year and decreased sales by 16% for condos and 8.3% for townhomes.
Softening demand for rentals is contributing to slower condo sales, with fewer investors entering the market. According to the Zumper ® Canadian Rent Report for August 2025, the average rent for a one-bedroom in Victoria is $2,020—a 6.5% drop from August 2024. A marked increase in purpose-built rentals, a ban on short-term rentals, fewer foreign students, and softer population growth are contributing to the cooling condominium market.
According to the Bank of Canada, 60% of all Canadian mortgages will be up for renewal in 2025 and 2026. If your mortgage is up for renewal, the Bank of Canada’s overnight policy rate drop to 2.50% this month may provide savings opportunities. You may also want to pause before automatically renewing with your existing lender. According to Ratehub.ca analysis, Canadians end up paying $155 more per month on average if they stick with their current lender. Over five years, that’s a difference of around $9,300. Should you need assistance with mortgage renewal, we can connect you with several trusted mortgage experts.
Whether there will be more rate cuts before year-end remains uncertain. Doug Porter, chief economist with BMO, believes the Bank of Canada will leave rates unchanged in October, cut in December, hold in January, and lower again in March, while others anticipate another cut this fall.
Thinking of opening a new door? Let’s talk! Whether you’re looking to buy, sell, or strategize for an upsize or downsize down the road, we can provide expert guidance tailored to your situation. Navigating the real estate market requires the right strategy, and we’re here to help. Contact Audra or Robert today to discuss your plans and make the most of market opportunities!
Warm regards,
Audra & Robert
The Victoria Pros Real Estate Team
For more statistics on the Victoria real estate market – click on the links to the right for the latest reports and data from the Victoria Real Estate Board, the British Columbia Real Estate Association, the Canadian Mortgage and Housing Corporation and the Canadian Real Estate Association.