RSS

Q2 2025 South Island Real Estate Market Report: What Buyers and Sellers Need to Know Now

Q2 2025 South Island Real Estate Market Report: What Buyers and Sellers Need to Know Now

Thinking about buying or selling a home in Victoria, BC, or the surrounding areas like Westshore or the Cowichan Valley? The latest Q2 2025 data is in—and it paints a clearer picture of where the South Island real estate market is heading.

Whether you're an investor, first-time buyer, or seasoned seller, here's what’s really happening behind the headlines—and what it means for your next move.


Big Picture: Balance is (Temporarily) Back in Victoria Real Estate

After several years of volatility, the Greater Victoria real estate market, as well as Westshore and Cowichan Valley, is showing signs of equilibrium. But don’t mistake balance for stagnation—strategy matters now more than ever.

  • Greater Victoria home sales in May hit 753, up from April’s 635 but slightly below May 2024’s 768.

  • Inventory is up 37% above the 10-year average, sitting at 3,333 active listings.

  • Months of Inventory (MOI) is at 4.4—an indicator of a balanced market.

  • Median Days on Market (DOM) is 23 days, up from the 10-year average of 19.

Cowichan Valley Leans Heavily Towards a Buyer’s Market

  • MOI is at 6.1, with 141 sales and 863 listings—well above the historical average.

  • Detached homes are taking about 26 days to sell.

  • Townhomes are sitting even longer—some over 45 days.


Victoria Real Estate Trends by Property Type

Victoria Core: Homes for Sale and What They’re Worth

Detached Homes (SFD)

  • Sales: 189

  • Benchmark Price: $1,326,600 (↑ 1.3% YoY, ↓ 1.4% MoM)

  • Inventory: 582

  • Median DOM: 17 days

Takeaway: Well-priced homes are still moving, but overall sales volume is below the 10-year average.

Condos

  • Sales: 169

  • Benchmark Price: $564,100 (↓ 0.9% YoY)

  • Inventory: 619

  • Median DOM: 30 days

Takeaway: Buyers are pushing back on pricing. Overpriced condos are sitting.

Townhomes

  • Sales: 42

  • Benchmark Price: $859,700 (↑ 1.6% YoY)

  • Inventory: 141

  • Median DOM: 20 days

Takeaway: Strong interest remains, but rising inventory = more negotiating room for buyers.


Westshore Real Estate Market Update

Detached Homes

  • Sales: 103

  • Benchmark Price: $1,051,200 (↑ 2.2% YoY, ↓ 1.2% MoM)

  • Inventory: 492

  • Median DOM: 29 days

Takeaway: Still active, but buyers are taking their time with more inventory to choose from.

Condos

  • Sales: 36

  • Benchmark Price: $528,800 (↓ 2.1% YoY)

  • Inventory: 233

  • Median DOM: 28 days

Takeaway: A cooling segment—price drops and longer DOM are becoming common.

Townhomes

  • Sales: 31

  • Benchmark Price: $717,700 (↑ 0.6% YoY, ↑ 2.2% MoM)

  • Inventory: 147

  • Median DOM: 23 days

Takeaway: Stable, but buyers still hold negotiation power.


Cowichan Valley Real Estate Market Snapshot

Detached Homes

  • Sales: 103

  • Benchmark Price: $806,800 (↑ 4% YoY)

  • Median DOM: 24 days

Takeaway: A solid showing for rural BC, but softening is expected in coming months.

Condos

  • Sales: 10

  • Inventory: 51

  • Median DOM: 34 days

Takeaway: Especially older units are lingering longer than usual.

Townhomes

  • Sales: 12

  • Inventory: 82

  • Median DOM: 46 days

Takeaway: This is now firmly a buyer’s market. Room for negotiation is growing.


What Smart Buyers, Sellers, and Investors Are Doing Right Now

Buyers

With homes for sale in Victoria, Westshore, and Cowichan sitting longer, savvy buyers are negotiating upgrades, price reductions, and credits at closing.

Sellers

Positioning matters more than ever. If you want to sell your home in Greater Victoria, pricing properly and marketing effectively will determine your success.

Investors

Pay attention to the condo and townhome markets. Rental returns could improve soon as units sit longer and sellers become more flexible.


GST Removed on New Homes for First-Time Buyers

As of May 27, 2025, the federal government has eliminated GST on newly built homes priced up to $1 million for first-time homebuyers in Canada.

  • This could save buyers up to $50,000.

  • Homes between $1M–$1.5M are eligible for partial rebates.

  • Applies to pre-sales, owner-built homes, and new construction bought after May 27.

👉 More details on the GST rebate


Featured Listings: Homes for Sale on Vancouver Island

Luxury & Acreage

Oceanview & Family-Friendly

New Construction in The Properties – Duncan

  • 3203 Woodrush – $1,099,900 | Custom specs welcome

  • 3206, 3214, 3211, 3218 Woodrush – From $1,049,000 | New homes with views

Affordable & Entry-Level


Bank of Canada Holds Interest Rates Steady at 2.75%

As of June 4, 2025, the BoC held the overnight rate at 2.75%, following earlier rate cuts totaling 2.25% since mid-2024.

Governor Tiff Macklem cited trade uncertainties—especially with the U.S.—as the reason for the pause.

The next interest rate announcement is set for July 30, 2025. Buyers and investors should stay tuned.


Looking to Buy or Sell in Victoria, BC?

Whether you're looking for homes for sale in Oak Bay, a new townhome in Langford, or acreage in the Cowichan Valley, we’re here to help you navigate the current market with clarity, strategy, and impact.

📞 Contact The Webbers today and let’s talk about how to make your move a smart one.

MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.