When it comes to investing, few options are as dependable as real estate, especially in Victoria, BC. Back in 1970, the average home in Victoria cost around $23,000. Today, the benchmark price for a single-family home in the Victoria core has soared to $1.28 million. This staggering rise shows why real estate is about time in the market, not timing the market.
Let’s look at it another way. In 1970, it took 836 ounces of gold to buy a median-priced home in Victoria. Fast forward to 2024, and due to significant real estate price growth, it now takes only 193 ounces of gold to buy a median home. While home prices have surged from $23,000 CAD in 1970 to $1.28 million CAD in 2024, gold hasn’t kept up at the same rate. Additionally, $1 CAD in 1970 has lost substantial purchasing power, now being equivalent to $7 CAD in 2024 due to inflation. This highlights how Victoria real estate has outpaced both gold and inflation over time.
Why invest in Victoria real estate?
1. Steady appreciation and mortgage rate opportunities
As of October 2024, the best 5-year fixed mortgage rate in Victoria is 4.19%, and the best 5-year variable rate is 5.30%. While higher than in previous years, these rates still offer buyers the chance to secure favorable terms before further potential rate increases. Even with these higher rates, history shows that time in the market is what truly matters for wealth-building. Victoria’s consistent real estate appreciation offers solid returns for those who stay invested(Ratehub.ca)(nesto.ca).
2. It’s not about your dream home first—it's about getting started
When it comes to buying a home, the key is not to focus on purchasing your dream home right away. It’s about getting into the market, building equity, and using that growth as a stepping stone. By starting with a modest property, you can benefit from market appreciation and use that equity to move up into a larger home in the future. Real estate is a long game—each step helps you build wealth over time.
3. Rental market trends
Victoria’s rental market continues to thrive, with the average rent for a two-bedroom unit reaching around $2,400 per month in 2024. For renters, these rising costs make buying a home an attractive option for long-term savings. For investors, high demand ensures a steady stream of rental income(Ratehub.ca).
4. Economic growth in Victoria
Victoria’s economy continues to grow, fueled by the tech sector and tourism, which keeps real estate demand high. Additionally, Victoria’s mild climate makes it an attractive destination for Canadians relocating from harsher parts of the country, further increasing demand for homes. Whether you’re a first-time buyer or looking to invest, real estate in Victoria offers great potential for long-term financial growth (WOWA)
The bottom line? Real estate in Victoria has not only outperformed inflation and other investments like gold but also remains a safe and reliable way to grow wealth. Whether you're looking to buy your first home or expand your property portfolio, now is a great time to get started. As a Victoria Realtor, I’m here to guide you through the process and help you make the most informed decisions.
Best regards,
Brock Webber
250-715-5414
https://www.southvancouverislandrealestate.ca/ - Search for homes in Victoria today!