If I had to give 2025 a label in Victoria real estate, this would be it: the year of breathing room.
Not a boom. Not a bust. And definitely not a return to the frenzy years people still talk about over coffee. Instead, 2025 was a year where the market slowed down just enough for decisions to be made with a bit more clarity. Buyers had time to think. Sellers had to be more intentional. And outcomes depended far more on pricing, condition, and expectations than on luck or timing.
By the end of this post, you should have a good sense of what actually drove the Victoria market in 2025, where demand truly came from, and what that means heading into 2026.
The big picture: steady prices, selective buyers
Looking at Greater Victoria as a whole, pricing held up better than many expected. Single family homes finished the year with an average sale price just over $1.3M, modestly higher than 2024. Condos and townhomes followed a similar pattern. Flat to slightly up, but without the sharp swings we saw earlier in the decade.
That stability, however, came with a clear trade-off: buyers were far more selective.
Homes that were well priced and well presented sold. Homes that were not sat longer, invited negotiation, or simply missed the moment. This was especially true in the middle of the market, where buyers had more choice than they’ve had in years.
Sales activity picked up, but confidence stayed cautious
Total sales volumes improved year-over-year, particularly for single family homes. That tells us something important. People were still moving. Life events did not stop. But the mindset had changed.
What I saw repeatedly was this:
Buyers came prepared, but not rushed.
Conditions were common again.
Price reductions were part of the process, not a failure.
This wasn’t hesitation. It was measured decision-making, and that tone defined much of the year.
Victoria is still a local market, and the data proves it
One of the most telling pieces of data in the 2025 annual reports is buyer origin.
More than 91% of all buyers lived in British Columbia, and nearly 76% were already in Greater Victoria. Buyers from elsewhere in Canada made up just over 7%, while international buyers accounted for less than 2%.
Even when we look only at out-of-town buyers, the story stays local:
About 64% were still from BC
Roughly 29% came from elsewhere in Canada
Less than 7% were from outside the country
This matters because it reinforces a long-standing truth about Victoria real estate. This market is driven by people who already live here or already plan to live here. Lifestyle, work, family, and long-term roots continue to outweigh speculation or global capital flows.
Micro-markets mattered more than headlines
If you zoom into individual municipalities, 2025 becomes even more interesting.
Oak Bay, North Saanich, and parts of Saanich East continued to command premium pricing, while Langford and Sooke delivered higher volumes at more attainable price points. Condos in the core remained active, particularly for buyers prioritizing walkability and simplicity over space.
What changed in 2025 was how forgiving the market was not.
Layout, condition, parking, strata health, street noise, and renovation quality all mattered more than they did a few years ago. The gap between a great property and an average one widened, even when headline prices appeared stable.
Interest rates helped, but psychology mattered more
From a national perspective, interest rates eased during 2025, and that certainly helped bring some buyers back into the conversation. But lower rates did not automatically translate into aggressive behaviour.
Many buyers remained cautious, shaped by the volatility of the last few years. Sellers, meanwhile, sometimes expected rate cuts to reignite urgency that simply wasn’t there.
The result was a market that worked best for people who aligned their expectations with reality, rather than betting on sentiment alone.
International and national influences stayed in the background
Despite plenty of global headlines, international buyers remained a very small part of the Victoria market in 2025. Less than 2% of all purchases came from outside Canada.
National housing conversations around supply, affordability, and policy set the tone, but they did not drive day-to-day outcomes here. In practice, Victoria behaved like it usually does: locally influenced, lifestyle driven, and resistant to sudden swings.
What 2025 rewarded, and what it punished
2025 rewarded:
Realistic pricing from the start
Homes that were clean, bright, and well maintained
Sellers who understood buyer trade-offs
2025 punished:
“Testing the market” pricing
Deferred maintenance without price adjustment
Assuming demand would overcome condition
This isn’t right for everyone, but for many sellers the choice was clear: price well and stay in control, or price high and let the market decide for you.
Looking ahead to 2026
If 2025 was the year of breathing room, 2026 will likely be the year where confidence decides direction.
I’m watching:
Inventory levels
Time on market
Buyer decisiveness, not just rates
Continued divergence between property quality and outcomes
The market doesn’t need drama to be healthy. A year like 2025 can be a gift if you use it properly.
If you’re thinking about a move in 2026, or just trying to understand how these patterns apply to your specific neighbourhood or home type, I’m always happy to talk it through. No pressure. Just a clear conversation about options and trade-offs.
