Downsizing often brings up a mix of emotions. For some, it sparks thoughts of simplifying life or embracing a new chapter. For others, the idea of leaving behind a cherished home can be overwhelming. Deciding whether now is the right time to downsize is a complex and personal choice, especially in a place like Victoria, BC, where homes are full of memories and potential opportunities. While many consider downsizing for various reasons, there are both advantages and potential challenges to keep in mind.

Benefits of Downsizing

1. Unlocking Financial Flexibility

Downsizing can potentially provide financial advantages, especially for those who have built significant equity in their homes. For homeowners in Victoria, where property values have increased over the years, selling a larger home and moving to a smaller one might allow for additional financial flexibility. Reducing monthly expenses related to utilities, property taxes, and maintenance could also be appealing to some.

2. Lower Maintenance

Managing a large home can sometimes feel like a full-time job. Yard work, repairs, and regular upkeep are all part of homeownership, and they can become more time-consuming over the years. Downsizing to a smaller home, condo, or townhouse could reduce the amount of maintenance required, offering more time for other activities.

3. Increased Flexibility

Downsizing may also lead to increased lifestyle flexibility. Moving to a smaller home closer to urban amenities or downsizing into a condo could offer more convenience, with strata management often handling some maintenance responsibilities. This shift might provide more freedom to travel or engage in other activities.

4. Decluttering Life

Downsizing can be an opportunity to simplify one’s living space by reducing unnecessary belongings. Moving into a smaller home often involves reassessing personal possessions, which might lead to a more streamlined lifestyle. For some, this process can bring a sense of relief and clarity, as it encourages a more intentional approach to what’s truly needed.

5. A Fresh Start

For those seeking change, downsizing might feel like the start of a new phase in life. Moving into a smaller space could align with shifting priorities, such as focusing on experiences over possessions. Victoria offers a variety of options, from cozy homes to modern downtown condos, that might fit this vision of a fresh start.

Things to Think About

When considering downsizing, several factors might come into play:

1. Financial Considerations

Some may reflect on how downsizing could impact their financial situation. This includes thinking about the potential sale price of their current home, the cost of a new, smaller property, and any ongoing maintenance or strata fees.

2. Lifestyle Alignment

It could be worth considering how well a current home aligns with one’s lifestyle. If managing a larger home feels burdensome or there are rooms going unused, it might make sense to think about whether a smaller space could better fit current needs.

3. Readiness for Change

Downsizing often involves both practical and emotional shifts. Moving out of a long-held home can represent the end of one chapter and the beginning of another. Some may consider whether they’re prepared for this change in their life.

One of the most significant challenges when considering downsizing is the emotional attachment to a current home. Many homeowners have built years of memories in their homes, making the idea of moving difficult. Letting go of a space where important life events occurred can evoke a strong emotional response.

4. Future Plans

Long-term plans are another factor to weigh. Some may reflect on how a smaller home could fit with future goals, such as traveling more frequently, reducing home responsibilities, or simplifying daily life.

Final Thoughts

Downsizing is a personal decision, with both benefits and challenges. For some, the prospect of financial flexibility, reduced maintenance, and a simpler lifestyle may align with current goals. Others may find that the emotional ties to their home or the adjustment to a smaller space may present challenges. Whatever the case, there’s no right or wrong answer—just what feels right based on individual circumstances and needs.

If you’ve been considering whether downsizing might be the next step in your journey, I’d love to help you explore your options. Whether you're curious about the market or simply want to talk through your goals, let’s connect. Together, we can find a path that feels right for this next chapter in your life.

As we move into the final quarter of 2024, the Victoria real estate market continues to maintain its balance. Whether you're considering buying or selling or simply keeping an eye on local trends, September’s data offers valuable insights into what’s happening in the region. This update breaks down the key statistics and market dynamics to help you understand what the numbers mean for you.

Sales Activity: Consistent Growth

September was an active month in Victoria’s real estate market, with 571 properties sold in the Victoria Real Estate Board region September 2024, which represents a 15.8% increase from September 2023 and a 4.8% rise from August 2024. This growth signals a steady and sustainable pace, rather than the dramatic shifts seen in previous years.

• Single-family homes saw a total of 272 sales, marking a 19.3% increase compared to last year.

• Condominiums had a strong performance as well, with 189 units sold—an increase of 21.9% year-over-year.

Overall, the market is seeing healthy levels of activity, reflecting steady interest from both buyers and sellers.

Balanced Market: Fewer Extremes

One of the standout characteristics of the current market is its balance. The Victoria real estate market is no longer experiencing the sharp swings that often come with either a buyers’ or sellers’ market. Instead, there’s a more even distribution of power between both sides.

This balance is reflected in the Sales to Active Listings Ratio, which sits in the 14-20% range. Markets with a ratio above 20% typically favor sellers, while those below 14% lean toward buyers. Sitting comfortably in the middle, Victoria’s market offers both sides a level playing field, with neither experiencing undue pressure to make rushed decisions.

Inventory Levels: More Selection for Buyers

One positive trend for those looking to purchase is the rise in inventory. September 2024 ended with 3,361 active listings, representing a 5.3% increase compared to August 2024 and a 24.5% rise compared to the same month last year​. This increase gives buyers more options and allows for a more deliberate decision-making process, rather than feeling pressured by a scarcity of choices.

In balanced markets like this, properties typically stay on the market longer, and buyers have more time to explore their options. With less urgency, it’s a good time to take a step back and assess the choices available without rushing into a purchase.

Even though the market has found more balance, homes that are priced right and stand out in terms of location, design, or condition are still moving quickly. We’re seeing that when a property ticks all the right boxes—whether it's a prime location, a beautifully updated interior, or a competitive price—there’s still strong demand. In some cases, this can lead to multiple offers, especially for those homes that capture buyers' attention from the start. So, while the market overall has began to see more balanced conditions, the most desirable homes are still generating plenty of interest and may not stay available for long.

Pricing Trends: Slight Declines

On the pricing front, the Victoria market is seeing some minor adjustments. Prices have softened slightly, but not drastically:

• The MLS® Home Price Index (HPI) benchmark value for a single-family home in the Victoria Core was $1,279,700 in September 2024, down 2.8% from $1,316,100 in September 2023. This is also marginally lower than the $1,287,400 recorded in August 2024.

• For condominiums in the Victoria Core, the benchmark value stood at $553,400, a 5.1% decrease from September 2023​.

These moderate price shifts align with the overall balanced market conditions. There’s no extreme pressure driving prices up or down, allowing the market to remain stable.

Interest Rates: A Factor to Consider

Interest rates continue to influence buyer activity. Recently, rates have shown slight declines, which has brought some relief to those looking to finance their home purchases. Lower borrowing costs are making it more feasible for buyers to enter the market or upgrade their current living situation.

This has helped to keep demand steady, without creating the overheated conditions of earlier periods. The ability to secure a mortgage at a more favorable rate has likely contributed to the overall rise in sales, even as prices show modest declines.

Looking Ahead: Market Stability Continues

For the remainder of 2024, the Victoria real estate market is expected to remain in this balanced state. Increased inventory and stable prices should help sustain this equilibrium.

While the overall market is balanced, it’s important to note that there are still situations where competition may arise. Well-priced homes in highly desirable areas or with unique features can still attract multiple offers. However, for properties in other circumstances, the balanced market allows both buyers and sellers to move at a more measured pace.

What Buyers and Sellers Should Keep in Mind

In the current market, both buyers and sellers can benefit from thoughtful planning and a clear understanding of market conditions.

• For Buyers:

  • Take advantage of the increased inventory and stable prices to find a home that suits your needs. Consider your options carefully.

  • Be aware that while most properties may allow for more time to decide, well-priced homes in key areas can still attract competition.

  • Keep an eye on interest rates and secure pre-approval to understand what you can afford before beginning your home search.

• For Sellers:

  • Pricing your property correctly is crucial in a balanced market. Overpricing can result in extended time on the market, while a well-priced home will generate interest from serious buyers.

  • Make sure your home is presented in its best light, from being fully prepared to list to marketing materials. With more inventory available, you’ll want to make sure your property stands out.

  • Be prepared for a measured pace of offers. Properties may take slightly longer to sell in a balanced market, but with the right approach, the right buyer will come along.

Final Thoughts on Victoria’s Real Estate Market

September 2024 reflects a real estate market that’s more stable and balanced, providing opportunities for both buyers and sellers. With more inventory, moderate pricing, and lower interest rates, it’s a good time to carefully consider your options, whether you're thinking of buying or selling.

As the year progresses, staying informed about the trends and adjusting your approach based on market conditions will help ensure successful outcomes. This balanced market offers a chance for more thoughtful and deliberate decision-making—whether you're entering the market, staying put, or simply observing the trends.

Thinking about making a move in the Greater Victoria area? Connect with us to set up a complimentary, no-obligation consultation.

Information provided by the Victoria Real Estate Board  September 2024 statistics package.