MONTHLY MARKET UPDATE — JUNE 2022 EDITION
T
his past May has been the first month in our Greater Victoria Area real estate market where we have seen a significant shift in trends. A total of 761 properties sold in our region this May, 27.5% fewer than this time last year and a 7.6% drop from April 2022. This, in contrast to over 1,770 active listings for sale which is up over 30% from April. This correction is made even more apparent with the absorption rate climbing from 1.7 to 2.2 months of inventory in a single month. Between 5 and 6 months of inventory is considered by experts as a balanced market; however, we have for the last 16 months experienced absorption rates below 2 months of inventory, a very strong “Seller’s Market”. With this softening of sales numbers, increasing interest
Active Listings / Number of Sales Greater Victoria - (last 24 months) 3000
2500
1776
2000
1500
1000
761
500
0
Active Listings
rates, increasing listings inventory, and increasing absorption rates, we will without a doubt start to see some return to normalcy, some return to balance, here in our local market.
Absorption Rate
6
5.7
Months of Inventory
Greater Victoria Area - (2019-2022) 5.3
5.1
4.7
5
4.7
4.6
4
4.2
5.6 5.2 4.3
4.1
4.0
3.9
4.0
4.2
4.3 4.0
2 1
2.8
1.9
2.2
1.8 1.6
1.4
1.6
1.5
2.4 2.2
1.7
1.4
1.3
1.3
1.3
1.3
1.2
1.1
December
November
October
2022
1.4
September
2021
1.3
August
July
2020
June
2019
2.0 1.6
May
April
March
February
January
0
3.7
3.5
3
Number of Sales
Market transitions are rarely uniform. This is more than apparent when we examine the absorption rates for various price brackets. In the luxury market, the absorption rate for property between 2 and 3 million has jumped from 0.2 months of inventory in April, to 2.69 months of inventory in May. Above 3 million, the absorption rate has jumped from 3.67 months of inventory in April to 6.83 months of inventory in May. In Saanich East specifically, the absorption
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