The Victoria real estate market has entered a period of balance as we move through the fall. In August 2025, 525 properties sold across the region, representing a 3.7 % decline compared to August of last year and a sharp 22.8 % drop from July’s unusually strong activity. Within that total, sales of single-family homes rose by just over 6 % year over year, while condominium sales slipped by nearly 16 %. Inventory has risen steadily, with about 3,600 active listings at month’s end — 12.8 % higher than a year ago, though down slightly from July. This increase in available homes has pulled the sales-to-active-listings ratio to roughly 14.6 %, which is just below the threshold for a balanced market and points to a mild tilt toward buyer’s conditions. Pricing has remained stable overall, with the benchmark value for a single-family home in the Victoria Core sitting at $1,308,100 in August, up 1.6 % year over year but a touch lower than July’s $1,338,800 peak. Condominium benchmarks in the core have softened slightly, with values down about 1.4 % from last year. Well-priced and well-presented homes are still attracting offers, while mis-priced or less desirable properties are spending longer on the market.
Local economic conditions continue to support housing demand. Victoria benefits from a tight labour market, with one of the lowest unemployment rates in Canada, supported by the stability of its public sector, government services, and lifestyle-driven in-migration. Broader provincial data shows unemployment closer to 6.2 %, highlighting how the capital region is performing better than much of British Columbia. At the same time, inflationary pressures, higher living costs, and global trade uncertainties are tempering confidence, which makes the direction of interest rates especially important for real estate.On September 17, 2025, the Bank of Canada reduced its policy rate by 25 basis points, bringing the overnight rate to 2.50 %. This marked the first rate cut since March and reflected progress on inflation, which is now hovering around 2.5 %, as well as concerns about slowing economic growth. The cut is expected to filter into mortgage lending, particularly for variable and adjustable-rate products, providing a modest boost to affordability. Many economists anticipate additional cuts in the months ahead if inflation remains contained, which would further ease borrowing costs.Against this backdrop, conditions present a mixed but strategic opportunity for both buyers and sellers. Buyers now benefit from more selection and greater negotiating power, and with rates moving downward, this is a favorable window to enter the market before renewed competition emerges. Sellers, meanwhile, can still achieve strong results, especially in the single-family segment, provided they set realistic asking prices and invest in proper preparation and marketing. Those who act sooner rather than later may enjoy a “first-mover” advantage before additional listings crowd the market.Overall, Victoria is in a balanced but steady phase. The recent rate cut is supportive of both activity and affordability, suggesting that the coming months could offer a timely opportunity for buyers to make their move, while motivated sellers can still capitalize on stable prices by positioning their properties carefully.