Absorption Rate - know your Market

The June numbers are in and the market looks to be strong and steady but with further weakening in the luxury segment.

Overall: market demand was slightly lower with 3.4 months of supply vs. 2.9 last month; there were 2108 active listings and 626 units sold. Prices remained relatively unchanged. Sales volume was down 14% from last month but still 4.5% higher than June 2018. Average days on market is up to 39 days vs. 32 last month. Sold units also took longer at 27 days vs. 20 days in May.
Detached: sales down 13% vs. last month but sales were 12% higher compared to last June. Detached home supply is up slightly to 3.6 months vs. 3.2 last month. Listing volume is similar to last month. Victoria and Vic West saw the larger decrease in demand, dropping to 3.8 months vs. 2.7 last month. Demand in most other core areas remained steady or saw an increase in demand. Westshore demand dropped to 3.9 months supply vs. 3.0 last month and Sooke really dropped with a 4.8 month supply vs. 3.0 last month. By price, under $1M is still hot with only a 2.6 months supply and only a 3% drop in sales vs. May. Even $1M-$1.5M is still very much in demand at 4.2 months supply vs. 5.0 last month. Sales over $1.5M continue to slow with no decrease in inventory. Oak Bay homes only seem to be in demand under $1.5M and are at a 2.5 month supply, above $1.5M we are at 18 month supply at the moment with only 4 sales and 73 listings.
Condo: demand remains strong with 3.1 months supply vs. 2.8 last month. Sales volume is down 11% over last month and was similar to a year ago. Demand in the core remained strong with only 2.8 months supply. Peninsula sales dropped significantly and now have a 5.6 month supply (balanced market). Westshore sales were very strong last month with a 30% increase in sales and supply is down to 2.9 months now vs. 4.3 a month ago. By price, condos under $500k are still in extreme demand at 2.3 months supply; volume was slightly lower but listings are down too so the ratio is similar. $500k-$650k sales increased and demand is still strong at 3.8 months supply. Sales over $650k were down significantly (25%) and we are moving towards a Buyer's market with 6.8 months supply.
Townhomes and half duplex: demand dropped to 3.3 months vs. 2.4 last month but the 1 week trend is strong so I expect to see continued strong sales in July. Victoria Core demand saw the largest decrease from 1.9 months supply last month to 3.0 months; Peninsula saw an increase in sales and demand is up with 3.4 months supply vs. 4.1 last month.