Monthly Market Update - June 2020 Edition

Page 1

MONTHLY MARKET UPDATE — JUNE 2020

I

Greater Victoria Area - (2017-2020)

7 6

5.7 5.3

5.1

4.7

5

4.7

4.6

4

4.2

4.3

3

4.0

3.9

2.3 2.4

3.9

3.8

4.0 4.1

4.2

4.3 4.1

4.2 4.0

3.6

3.7 2.3

December

November

2020

October

2019

2.4

2.1

September

2018

2.3 2.1

August

2017

2.2

July

2.5

June

March

February

1

2.5

May

2.3

2.5

April

2

dustry, and practice of showing a home would adapt. As restrictions gradually begin to lift, we are certainly starting to experience a higher amount of interest from sellers for our listing services. While inventory continues to increase, we are still lacking somewhat in the most desirable single family price range of between $600K and $900K. Less choice for consumers leads to many buyers not finding their desired property and simply waiting for the property to come available. Well priced, desirable property in this particular range has been receiving significant interest, and sometimes multiple offers.

Greater Victoria - (2017-2020)

1000

900

Number of Sales

4.0

2.5

1100

800

700

600

500

563

300

200

4.3

4.1

2.7

Monthly Sales Comparison

400

3.4

5.6

3.1

January

There were 2,544 active listings for sale on the Victoria Real Estate Board MLS system in May. This is down approximately 16% from the same period last year; however it is also a roughly 10% increase over April. At the start of the COVID-19 crisis many sellers who were planning on listing this Spring simply pressed the pause button, opting instead to wait and see how the in-

Absorption Rate

Months of Inventory

n May, a total of 457 properties sold in the Greater Victoria Area. This represents a 59% increase in sales from the month prior (April) which, in the wake of the COVID-19 closures, saw our sales hit an unprecedented low of only 287 sales. While the increase in sales numbers is welcome news, our May numbers are still nowhere near the same time period from last year which ended with 848 sales in May 2019.

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2017

478

675

929

885

1006

1008

790

736

640

664

671

462

2018

431

545

688

774

755

708

651

594

533

598

462

375

2019

329

421

640

696

848

740

706

661

616

619

577

402

2020

411

563

608

287

457

The luxury market remains slow with property over the $1.5M price point having 8 or more months of inventory. The extreme luxury market over $3M

2481 BEACON AVENUE SIDNEY BC V8L1X9 | 1-877-656-0911 REACHUS@HOLMESREALTY.COM | WWW.HOLMESREALTY.COM When you buy or sell a home with Holmes Realty, a portion of the commission goes in support of local charities. Over $250,000 raised!


currently has 44 months of inventory; a challenging price range currently with a significant number of competing listings and very few sales.

Greater Victoria Area (Core, Westshore & Peninsula) Absorption Rates by Price Range May 2020

50

44.25

45

February had 253 single family home sales in Greater Victoria. Only 13 sold above the $1.5M mark. Of those, only 5 properties sold over the $2M mark with the highest priced sale for May being an Oak Bay water view home at approximately $2.7M. The lowest priced freehold, non-manufactured, home in the Victoria Area (not including Sooke) was a detached single family home in Langford, approximately 1,062sq/ft, for $524,900.

40

Months of Inventory

The benchmark price for a single family home in Greater Victoria Area was $780,500 in May, up from $775,900 the month prior. Townhouse benchmarks dropped from $597,000 to $595,300. Condominium benchmarks dropped from $521,400 in April to $519,400 in May.

35 30

25.50

25 20 15 10 5 0

2.78 3.12

1.25

Under $600K $600K to $800K $800K to $1M

5.88 $1M to $1.5M

8.38

$1.5 to $2M

May 2020

9.00

This is calculated by dividing an average number of sales into the number of homes currently on the market. The rate shows how many months it will take to exhaust the supply of homes. Generally, a value between 5 and 6 months is considered to indicate a healthy, balanced market. A value over 6 is considered a Buyers market, and values under 5 are generally a Sellers market.

Months of Inventory

The absorption rate is the rate at which available homes are selling, in a specific market area, during a given period of time.

Over $3M

Absorption Rates - Single Family Detached

8.00

8.00

What is an Absorption Rate?

$2M to $3M

6.60

7.00

5.66

6.00

4.60

5.00

4.00

3.00

2.00

3.74

4.29 3.94 3.70

4.23

4.00 3.793.64 3.13

3.00 1.88

1.00

0.00

2481 BEACON AVENUE SIDNEY BC V8L1X9 | 1-877-656-0911 REACHUS@HOLMESREALTY.COM | WWW.HOLMESREALTY.COM When you buy or sell a home with Holmes Realty, a portion of the commission goes in support of local charities. Over $250,000 raised!


Absorption Rate Greater Victoria Area - (2017-2020)

5.7

6

5.3

5.1

4.7

5

4.7

4.6

4

4.2

4.3

3.4

5.6 4.3

4.1

4.0 4.0

3.9

3.1

3

2.3

2.4

4.1

4.3 4.1

4.2 4.0

3.6

3.7 2.3

December

November

October

2020

2.1

September

2019

2.4

2.1

August

2018

2.3 2.2

July

2017

June

March

February

January

2.5

2.5

May

2.5

1

3.8

4.0

2.5 2.3

2

3.9

4.2

2.7

April

Months of Inventory

7


Monthly Sales Comparison Greater Victoria - (2017-2020) 1100

1000

Number of Sales

900

800

700

600

500

400

300

200

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2017

478

675

929

885

1006

1008

790

736

640

664

671

462

2018

431

545

688

774

755

708

651

594

533

598

462

375

2019

329

421

640

696

848

740

706

661

616

619

577

402

2020

411

563

608

287

457


Active Listings / Number of Sales Greater Victoria - (last 24 months) 3500

3000

2500

2000

1500

1000

500

0

Active Listings

Number of Sales


Absorption Rates - Single Family Detached May 2020

9.00

8.00

Months of Inventory

8.00

6.60

7.00

5.66

6.00

4.60

5.00

4.00

3.00

2.00

1.00

0.00

3.74

4.29 3.94 3.70

4.23

4.00 3.793.64 3.13

3.00 1.88


Absorption Rates - Condominiums May 2020

33.00

14.00

13.07

Months of Inventory

12.00

10.00

9.23

8.44 8.00

7.13

6.67 6.00

6.25 4.91

5.69 4.45

4.00

2.50 2.00

0.00

3.00


Absorption Rates - Townhouses May 2020

16.00

13.50

Months of Inventory

14.00

12.00

10.00

8.00

6.27 6.00

4.00

6.00

4.89 3.43

3.00

4.40

4.00 3.82

2.14

1.98

2.00

0.00

0.00

0.00


Absorption Rates - Manufactured Homes May 2020

6.00

5.40 5.00

Months of Inventory

5.00

4.00

3.00

2.14 2.00

1.00

0.00

2.18

2.00


Absorption Rates - Saanich Peninsula May 2020 14

13.07

12

10

8

6

7.13

5.66

6.00 6.27

4.23 4

3.13

2 0

2.00 2.18

n/a

n/a n/a

North Saanich

Sidney

Central Saanich


Saanich Peninsula Absorption Rates by Price Range May 2020

19.00

20

14.00

Months of Inventory

15

10.50 10

7.09 4.20

5

1.66 0

0.00 NO ACTIVE LISTINGS

Under $600K

$600K to $800K

$800K to $1M

$1M to $1.5M $1.5 to $2M

$2M to $3M

Over $3M


Victoria Absorption Rates by Price Range May 2020

13

12.00

12 11

Months of Inventory

10 9

7.20

8 7 6 5 4 3 2

3.00 1.91 1.64

1 0

NO SALES IN PAST 3 MONTHS

NO SALES IN PAST 3 MONTHS

$2M to $3M

Over $3M

0.00 0.00 Under $600K $600K to $800K $800K to $1M

$1M to $1.5M

$1.5 to $2M


Saanich East Absorption Rates by Price Range May 2020

50

45.00

45

Months of Inventory

40

33.00

35 30 25 20 15

10.50

10 5 0

0.00 NO ACTIVE LISTINGS

1.95 1.93

Under $600K $600K to $800K $800K to $1M

5.35 $1M to $1.5M

$1.5 to $2M

$2M to $3M

Over $3M


Oak Bay Absorption Rates by Price Range May 2020

18

16.20

16

Months of Inventory

14 12 10 8 6

4.00

4 2 0

NO SALES IN PAST 3 MONTHS

3.17

4.20 NO SALES IN PAST 3 MONTHS

NO SALES IN PAST 3 MONTHS

0.00

0.00 0.00 Under $600K

$600K to $800K $800K to $1M

$1M to $1.5M

$1.5 to $2M

$2M to $3M

Over $3M


Langford Absorption Rates by Price Range May 2020

15.00

16 15 14

12.00

13

Months of Inventory

12 11 10 9

7.91

8 7

5.31

6 5 4

2.76

3 2 1

1.05

NO SALES IN PAST 3 MONTHS

0.00

0 Under $600K

$600K to $800K

$800K to $1M

$1M to $1.5M $1.5 to $2M

$2M to $3M

Over $3M


Colwood Absorption Rates by Price Range May 2020

9

8.00

8

Months of Inventory

7

6.00

6 5 4

2.43

3 2 1 0

0.75

NO SALES IN PAST 3 MONTHS

NO SALES IN PAST 3 MONTHS

NO SALES IN PAST 3 MONTHS

$1.5 to $2M

$2M to $3M

Over $3M

0.00 0.00 0.00 Under $600K

$600K to $800K $800K to $1M

$1M to $1.5M


Metchosin Absorption Rates by Price Range May 2020

5

4.50

Months of Inventory

4

3

2

1.50

1

0

NO SALES IN PAST 3 MONTHS

NO SALES IN PAST 3 MONTHS

0.00 0.00 Under $600K

$600K to $800K $800K to $1M

NO SALES IN PAST 3 MONTHS

NO SALES IN PAST 3 MONTHS

NO SALES IN PAST 3 MONTHS

$1.5 to $2M

$2M to $3M

Over $3M

0.00 0.00 0.00 $1M to $1.5M


Greater Victoria Area (Core, Westshore & Peninsula) Absorption Rates by Price Range May 2020

50

44.25

45

Months of Inventory

40 35 30

25.50

25 20 15 10 5 0

1.25

2.78 3.12

Under $600K $600K to $800K $800K to $1M

5.88 $1M to $1.5M

8.38

$1.5 to $2M

$2M to $3M

Over $3M


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