Below are three charts showing absorption rates from the CREB monthly reports. The absorption rate is the number of months it would take to clear inventory assuming sales remain constant.
Absorption rate = Total inventory/monthly sales
Here is the July report. Note the blue band indicating a balanced market. Between 2-3.5 months inventory.
In the August report the absorption rate just exceeds the balanced market. The blue band has been moved up slightlyt 2.1-3.6.
For September the absorption rate heads up as sales decline and inventory increases. As this value goes way outside the balanced market range the label is conveniently moved up.
Blogger paranoia or a deliberate move by the CREB?
Source CREB statistics: here