Monthly Market Update - August 2020 Edition

Page 1

MONTHLY MARKET UPDATE — AUGUST 2020

A

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

4.1

4.3 4.1

4.2 4.0 3.7

2.3

2.4

2.3

2.1

December

November

October

2020

2.1

September

2019

4.2

3.6

August

2018

2.2

July

2017

June

March

February

1

2.4

2.5

May

2.3

2.5

4.0

3.8

3.5

April

2

3.9

4.0

3.9

2.3 2.5

demand for well priced, desirable property particularly in the $600K to $900K price range.

1100

1000

Number of Sales

4.3 4.0

2.5

Greater Victoria - (2017-2020)

563

800

700

600

500

400

300

200

5.2 4.1

2.7

Monthly Sales Comparison

900

3.4

5.6

3.1

January

There were 2,653 active listings for sale on the Victoria Real Estate Board MLS system in July. This is down approximately 10% from the same period last year. Less choice for consumers is driving very strong

Absorption Rate

Months of Inventory

total of 979 properties sold in the Victoria Real Estate Board this past July. This represents a near 40% increase in sales numbers from this same period in 2019, and a near 20% increase from June 2020. Sales of condominiums were up over 10% from July 2019, and single family home sales were up just over 60% from July of 2019. These impressive numbers are generally believed to be princpally an effect of the delayed spring market.

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

808

979

The luxury market under $1.5M has also started to see increased demand and increased sales numbers. On the peninsual we are seeing property in this price range is actually performing particularly well with absorption rates dropping below 4 months of inventory between $1M and $2M. The extreme luxury market over $3M has also been experiencing a robust amount of interest. Currently, there is 8 months of inventory over the $3M pricepoint, down from a peak of 44 months earlier this year.

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!


July had 514 single family home sales in Greater Victoria. Of those, 169 sold over the $1M mark. 61 sold above the $1.5M mark. 30 sold over $2M and there were 13 sales over $3M. The highest priced sale for July was an Oak Bay water front home selling for pproximately $7M. The lowest priced freehold, non-manufactured, home in the Victoria Area (not including Sooke) was a detached single family home in Langford, approximately 1,233sq/ft, for $500,000.

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

9

8.40 7.58

8 7

Months of Inventory

The benchmark price for a single family home in Greater Victoria Area was $800,500 in July, up from $790,900 the month prior. Townhouse benchmarks rose from $590,100 to $597,000. Condominium benchmarks rose from $512,800 in June to $516,100 in July.

5.68

6 5 4

3.01

3 2

1.64 1.34 1.48

1 0

Under $600K

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

$1M to $1.5M

$1.5 to $2M

$2M to $3M

Over $3M

Absorption Rates - Single Family Detached July 2020

4.00

What is an Absorption Rate?

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.

3.45

3.50

2.63 2.50

3.00

2.92

3.00

2.22

2.42 2.30 2.15

2.70 2.56

2.00

2.58

1.901.97

1.56 1.50

1.29

1.00

0.50

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 5.2 4.3

4.1

4.0

3.1

3

2.5 2.3

2

4.1

4.2 4.0

2.4

2.3

2.1

December

November

2020

2.1

October

2019

4.3

3.7

September

2018

4.2

3.6

August

2017

4.1

2.3 2.2

July

2.5

June

March

February

January

1

2.4

May

2.5

2.5

4.0

3.8

3.5

2.7

2.3

3.9

4.0

3.9

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

808

979


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 July 2020

4.00

3.45

Months of Inventory

3.50

2.63 2.50

2.22

2.42 2.30 2.15

2.00

1.56 1.50

1.00

0.50

0.00

3.00

2.92

3.00

1.29

2.70 2.56 1.901.97

2.58


Absorption Rates - Condominiums July 2020

8.00

7.00

Months of Inventory

7.00

6.00

6.09

6.00

5.95

6.00

5.00

4.00

4.00

3.97

3.21

3.10 3.19 3.00

2.12 2.00

1.00

0.00

2.83


Absorption Rates - Townhouses July 2020

16.00

15.00

Months of Inventory

14.00

12.00

10.00

8.00

6.00

4.20

4.50

4.00

2.00

0.00

2.76 2.87 1.00

1.67

2.65 1.57 0.00

2.14 2.10

2.78


Absorption Rates - Manufactured Homes July 2020

8.00

7.20

Months of Inventory

7.00

6.00

5.00

4.00

4.00

3.00

2.00

1.00

0.00

2.00

2.00

7.50


Absorption Rates - Saanich Peninsula July 2020 7

6.09

6

5

4

3

4.00

2.92 2.56 2.15

2.65

2.12

2

0

2.00

1.57

1

n/a

n/a n/a

North Saanich

Sidney

Central Saanich


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