Monthly Market Update
Monthly Market Update
June 2026
Greater Victoria Real Estate Update – for April 2026
The Spring Market Has Arrived
The Greater Victoria real estate market gained momentum in May, with 713 properties changing hands. While sales were down 5.9% compared to May of last year, they were up nearly 11% from April, showing that buyers are becoming more active as we move into the summer market.
The biggest story continues to be inventory. There are now more than 4,000 homes available for sale across Greater Victoria—the highest level we've seen in over a decade. Buyers have more choice than they have had in years, and that is changing how people shop for homes.
Instead of rushing to make offers, buyers are taking their time, comparing properties, and carefully evaluating value. For sellers, this means pricing correctly from the start is more important than ever.
Home Prices Remain Stable
Despite the increase in available homes, Victoria's housing market remains remarkably stable.
• The benchmark price for a single-family home in Victoria sits at $1,339,000, virtually unchanged from a year ago.
• The benchmark price for a condominium is $551,400, down 1.9% from last year.
While some condo markets are experiencing softer conditions, detached homes continue to hold their value well.
Buyers Are Still Waiting... For Now
A recent survey found that more than one in five Greater Victoria households plans to purchase a home within the next three years. That's a significant amount of pent-up demand waiting on the sidelines.
What's people back?
Surprisingly, it's not just affordability or mortgage rates. Across Canada, economic uncertainty has become the biggest factor influencing real estate decisions. Concerns about inflation, global conflicts, and the broader economy are causing many buyers and sellers to delay major financial decisions.
However, industry experts believe many of these buyers will eventually return to the market as confidence improves.
Inflation and Mortgage Rates
Inflation rose to 2.8% in April, driven largely by higher gasoline prices linked to ongoing conflict in the Middle East. Some economists believe inflation could climb above 3% later this year if energy prices remain elevated.
The good news is that core inflation—which excludes volatile items such as food and energy— continues to ease. As a result, the Bank of Canada has kept its key interest rate unchanged at 2.25%.
Most economists now expect mortgage rates to remain relatively stable through the remainder of 2026, although significant rate cuts appear unlikely in the near term.
Population Growth Hits Pause
For only the second time in British Columbia's history, the province's population declined in 2025.
The decrease was primarily caused by federal policies reducing the number of nonpermanent residents, including international students and temporary workers. While permanent immigration remains strong, overall population growth has slowed considerably. T h
is has had a noticeable impact on housing demand, particularly in condominium and rental markets that traditionally rely on newcomers.
Financial Pressures Growing
Recent data from Equifax shows more Canadian homeowners are feeling financial strain.
Homeowner insolvencies increased more than 11% compared to the previous quarter.
Mortgage delinquencies in British Columbia rose 36% year-over-year.
Average non-mortgage debt among homeowners climbed to $82,400.
As many homeowners continue adjusting to higher mortgage payments following renewals, careful financial planning remains essential.
Looking Ahead
The second half of 2026 is shaping up to be a balanced market characterized by:
✔ More inventory and greater buyer choice
✔ Stable home prices
✔ Cautious but growing buyer activity
✔ Mortgage rates likely remaining near current levels
✔ Strong pent-up demand waiting for greater economic certainty
While we may not see a dramatic rebound this year, most experts agree that the housing correction appears to be entering its later stages. Buyers have opportunities they haven't seen in years, and well-prepared sellers can still achieve excellent results with the right pricing and marketing strategy.
Thinking About Making a Move?
Every neighbourhood and property type is performing differently in today's market. Whether you're buying, selling, or simply curious about your home's current value,We’d be happy to provide a personalized market update and discuss your options.
Please feel free to reach out anytime.
Michele Holmes, Mark Rice PREC and Eric Smith PREC Coldwell Banker Oceanside Real Estate
Helping clients on the Saanich Peninsula and across Greater Victoria make confident, informed decisions in every market.
