Monthly Market Update - August 2021 Edition

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MONTHLY MARKET UPDATE — AUGUST 2021 EDITION

T

Our sales numbers are down from this same period in 2020; however it’s worth noting that the Q3 and Q4 of 2020 saw an unprecedented surge in demand caused by COVID-19’s influence on the market. Looking further back, our current market is still outperforming both 2019

Monthly Sales Comparison Greater Victoria - (2018-2021)

1400

1200

Number of Sales

he Greater Victoria real estate market continued to experience very strong demand throughout July. Despite the high seasonal temperatures, and summer holidays, the ongoing inventory shortage kept the absorption rate low and buyer demand high. The gradual drop in sales numbers we have experienced since this past March is due in part to limited inventory; however, we historically see sales begin to taper off this time of year.

1000

843 800

600

400

200

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

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

979

989

990

795

631

2021

646

863

1173

1116

1049

942

835

Absorption Rate

Greater Victoria Area - (2018-2021)

Months of Inventory

7 6

5.7 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 4.0

3.9

3.1

3

4.1

3.8 3.5

2.7

4.1

4.2 4.0 3.7

1.4

1.3

1.3

1.3

2.4 2.2

December

November

October

2021

September

2020

August

July

2019

June

2018

May

February

April

January

2.0 1.6

March

1.8

4.3

2.8

1.5 1.9

4.2

3.6

2.5

2 1

4.0

3.9

and 2018 sales numbers. Concerning active inventory numbers, July 2019 ended with 2,949 active MLS listings available to the market. This past July, less than half of that number was available with only 1,270 active listings. Despite this inventory crunch, this July there were some 273 more sales than during the same period in 2019! Strong demand and higher than average sales numbers have supported strong benchmark pricing throughout the Greater Victoria Area. The luxury market has started to see increased demand with the provincial travel restrictions having been lifted. Many out of town buyers have been dropping into our office this past month looking for information on Real Estate.

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!


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

Over the last few quarters the market has been gradually accumulating high end inventory. In these last few weeks there have been several significant sales of property over 3M+ dollars.

Absorption rates have remained historically low, below two months of inventory in all of our municipalities. On the Peninsula, the absorption rate was 1.60 months of inventory in Central Saanich, 0.59 months of inventory in Sidney, and 1.35 months of inventory in North Saanich. The absorption rate for of the high-end luxury market dropped significantly over the past few months as demand has increased. From 7.50 months of inventory over $3M in June of this year, to only 3.37 months in July. The highest priced sale during July 2021 was a luxury Metchosin home for 12M. The lowest priced non-strata, non-manufactured, freehold, property in the Victoria Area (not including Sooke) sold for $550,000, an 856 sq.ft. Victoria home.

3.37

4

Months of Inventory

3

3

2

2

1.05 1

1

0

0.41 Under $600K

0.29 0.29 0.32 $600K to $800K $800K to $1M

$1M to $1.5M

0.58

$1.5 to $2M

$2M to $3M

Over $3M

Absorption Rates - Single Family Detached July 2021

1.80

1.60

1.60

Months of Inventory

The benchmark price for a single family home climbed from $809,100 in July 2020 to $993,100 last month. Townhouses climbed from $580,500 in July 2020 to $701,500 last month. Finally, condominium benchmarks have jumped from $481,400 in July 2020 to $533,500 in July 2021.

July 2021

4

1.52 1.35

1.40

1.20

1.00

1.09 0.93

1.04

0.86

0.80

0.75

0.69

0.66

0.59

0.60

0.46 0.40

0.30

0.27

0.20

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 - (2018-2021)

Months of Inventory

7

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 4.0

3.9

3.1

3

4.1

3.8

4.1

4.2 4.0 3.7

2.8

2.5

1.5 1.9

4.3

3.6

3.5

2.7

2

1.4

1.3

1.3

1.3

2.4 2.2

2.0

1.8

1.6

December

November

October

2021

September

2020

August

2019

July

June

2018

May

April

March

February

January

1

4.0

3.9

4.2


Monthly Sales Comparison Greater Victoria - (2018-2021) 1400

Number of Sales

1200

1000

800

600

400

200

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

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

979

989

990

795

631

2021

646

863

1173

1116

1049

942

835


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 2021

1.80

1.60

Months of Inventory

1.60

1.52 1.35

1.40

1.20

1.00

1.09 0.93

0.86

0.80

0.75

0.69

0.66

0.59

0.60

0.46 0.40

0.20

0.00

0.30

0.27

1.04


Absorption Rates - Condominiums July 2021

3.50

3.20

3.10

Months of Inventory

3.00

2.50

2.00

1.70 1.50

1.31

1.50

1.38 1.06

1.07

1.00

0.87 0.54

0.50

0.00

0.60


Absorption Rates - Townhouses July 2021

2.50

2.17

Months of Inventory

2.00

1.50

1.00

1.00

0.86 0.74

0.72 0.60

0.65 0.53

0.49

0.50

0.17 0.00

0.27 0.14


Absorption Rates - Manufactured Homes July 2021

8.00

Months of Inventory

7.00

6.75

6.00

5.00

3.86

4.00

3.00

2.00

2.00 1.62

1.00

0.00

0.00


Absorption Rates - Saanich Peninsula July 2021 4

3.10

3

2

1.60

1.35

1.62 1.07

1

0.59 0.65 n/a

0

SINGLE FAMILY

n/a

CONDOS

North Saanich

0.17 n/a

TOWNHOMES

Sidney

0.00

MANUFACTURED

Central Saanich


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