Greater Victoria’s real-estate market yielded a balanced end to the summer buying season with August sales declining 3.7% compared to last year, while average prices for single-family homes and townhomes rose by 2.3% and 5.5%, respectively, according to the latest Victoria Real Estate Board data.

 

The single-family-dwelling sub-market saw 268 of the month’s 525 overall sales in August through the Multiple Listings Service, an increase from 252 last year. The average price paid was $1,294,407 with a median of $1,137,500. Last August, the average was $1,264,686 with a median of $1,158,640.

 

Victoria-based real-estate agent Ryan Cook (see website) with brokerage Re-Max Camosun, says single-family homes continue to dominate south Island real-estate and in instances where a desirable location meets a value-driven price, even solicit bidding wars.

 

“Well-priced houses will sell quickly in this market, especially in the urban core, and especially in the range of $1 million with a suite,” Cook says. “Multiple offer scenarios have seen a resurgence over the summer, partly due to buyers being cognizant of what could happen to prices should interest rates start to fall, and having watched prices creep up over the last year despite stable, albeit still somewhat high, mortgage rates.”

 

On September 17th, Canada’s overnight lending rate set by the Bank of Canada could see its first dip since March, when the central bank lowered its rate to 2.75% and held it there after seven straight rate cuts stepped down from a peak of 5%. Cook believes the case for a drop can easily be made in light of Canada’s economic performance, and the challenges posed by domestic policies plus international tariffs. 

 

“There is a segment of buyers and sellers holding off on making major decisions until a clearer picture emerges on interest rates heading into 2026,” Cook says. “There is a significant portion of homeowners reaching the five-year mark on their mortgage set at historically low rates. There will be lots of people considering a sale at this juncture, although, if they cannot qualify for a mortgage on a new home at today’s stress-tested rates, they may opt to remain in place and renew with their existing lender. So you could say, the market is waiting for a rate movement from both the sellers’ camp, and the buyers’ camp.”

 

And speaking of rising house prices, so far in 2025, the average price between January through August has reached $1,308,286, an increase of 3% over 2024’s $1,270,057 annual average. The highest year ever for Victoria house prices was 2022 when the average price was $1,333,869. 2025 is unlikely to surpass 2022’s number, yet for a ho-hum year, this year’s average is skirting close to the all-time record.

 

Meanwhile, the struggling condominium market in Victoria had its second-slowest month of sales of 2025 in August, reaching just 152 purchases at an average price of $583,282 and a $526,500 median. This compares to 181 sales last August, when the average was $597,262, and the median reached $540,000. So far this year, only January had less condominium buying action, reaching 146 deals.

 

“The condominium segment remains under pressure due primarily to a lack of buying activity in downtown Victoria and periphery areas,” Cook notes. “The West Shore and the Saanich Peninsula are not as impacted as is Victoria. What this means, however, is buyers still have the upper hand in this segment in the core region, and for first-time buyers especially where every dollar counts, this gives them an opportunity to negotiate with sellers who may be willing to meet buyer expectations.”

 

Townhomes saw 66 sales in August at an average price of $870,978 and a median of $799,950. Last August saw 72 sales at a significantly lower average of $823,291 and a median of $767,000.

 

New active listings for the month reached 1,081 units, compared to 1,043 units in August of last year. Total active inventory on MLS was 3,600 units, compared to 3,191 in 2024.

 

As for a fall outlook, Cook says there could be a rise in listings mated to a drop in interest rates, which would in turn drive more interest and potentially more buying activity overall. Currently, all three main market segments are expected to post stronger annual averaged values compared to 2024, with sales relatively flat for both the condominium and townhome segments. Single-family home sales have seen decent gains throughout the year, and as already cited, a 3% price increase through August. C

 

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