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Market Conditions - June and July 2025

Real Estate Market Conditions - Monthly Update

June and July 2025

Overview

A Steady Summer Market Takes Shape

Real estate activity across Victoria and the Gulf Islands remained healthy through May and June. “We observed a fairly robust real estate market in the month of June,” said 2025 Victoria Real Estate Board Chair Dirk VanderWal. “Recent market trends suggest that we have finally transitioned from a pandemic-driven market to more conventional patterns. We have experienced consecutive months of a healthy and balanced market that includes listing inventory levels we have not seen in a decade paired with steady sales.”
With demand remaining strong, inventory improving, and prices relatively stable, the local real estate market is well-positioned for a healthy summer season. The environment continues to favour strategic decision-making from both buyers and sellers.

Summary - Opportunities for Buyers

  • Inventory growth is providing more options and easing competition
  • Stable, if not falling, interest rates continue to support financing opportunities
  • Balanced conditions allow buyers time for careful decision making

Summary - Opportunities for Sellers
  • Market activity remains brisk, especially for well-presented and well-priced homes
  • Prices are stable, if not increasing, despite the global economic uncertainties
  • Balanced conditions are allowing sellers to plan with greater certainty

Spring Market Sales Strong

Despite global economic uncertainties, the spring market did not disappoint. In May, sales of single-family homes were essentially equal to last year’s and increased by 18.2% relative to April’s. June was the strongest since 2021, with sales essentially equal to May’s (typically the height of the spring market) and rising 17.5% higher than June 2024.
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Listings on the Rise

Active listings in May were up 8.5% relative to April and up 11.3% relative to May 2024. In June, inventory grew again, increasing 1.7% relative to May and 9.2% relative to last June. This gradual increase has brought welcome choice for buyers and supported balanced conditions across the market.
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Market Balance Holding

The sales-to-active listings ratio remained just above 20% in June. While typically a sign of upward pressure on prices, market conditions remain balanced overall, supported by strong inventory and steady demand. Buyers and sellers are finding firmer footing compared to previous years of volatility.
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Prices Relatively Stable

After a brief spike in April, the average sale price of single-family homes has returned to a level more consistent with the preceding months and with last year at this time. In May, prices were down 6.1% compared to April’s spike, but down only 1.4% compared to May 2024. June’s prices were about equal to May’s and were 3% higher than June 2024.
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Interest Rates & Economic Outlook

The Bank of Canada held its overnight rate at 2.75% in early June—the second consecutive pause following a string of cuts beginning in June 2024. This decision reflects the bank’s balance of the inflationary risks of tariffs with ongoing weakness in the economy from trade uncertainty. For the real estate market, this means:

  • Stable borrowing costs: With the overnight rate unchanged, mortgage rates held steady in May and June—supporting consistent buyer demand.
  • Potential for another rate cut in July: Slower than expected national economic growth boost expectations that the Bank of Canada may reduce rates at its July 30 meeting.
  • Market confidence: Anticipation of rate relief, even modest, helps sustain purchaser confidence—particularly when paired with steady supply.

If you’re considering buying or selling, give me a call for expert advice and to begin exploring your options.

Gina Jacobsen, PhD
REALTOR®
(250)539-0828
gina@ginajacobsen.com

Sources:
Victoria Real Estate Board MLS® STATISTICS
British Columbia Real Estate Association Economics
Canadian Real Estate Association