June real estate sales have surpassed all expectations. With 910 sales and just 4,003 active listings, the sales to new listings ratio was at 4.40 – the lack available properties favoured the seller over the buyer. Sales were the highest since June 2009 (with 956 sales). New listings also rose and were the highest they’ve been since June 2012 (at 1449) while active listings were substantially lower than normal – at their lowest level since June 2009 (at 3789 listings). The sales to new listings ratio of 68% was the highest since 2005, meaning that June was a great time to sell!
Here are the numbers for the entire month (with an new adaptive sales projection algorithm that I’m testing):
The Victoria Real Estate Board (VREB) has published their monthly statistics with further sales information and analysis. The 3-month average median price has been surging since the beginning of the year, while the 3-month average inventory continues to drop:
So how does this all stack up? New listings have been increasing steadily since April while the inventory (active listings) have been dropping. Not only is it a sellers market – there’s not much to choose from.
Finally … in behavioural economics, there is the concept of illusory correlation. An example would be to suggest that the sizzling sales in June 2015 match the sizzling hot weather. 😉 Truth is, in spite of slightly lower interest rates – I’m at a loss to figure out why the sales have been so high for the past few months. What is your theory?