The Greater Vancouver Real Estate Board has released their statistics for the month of September and they show that buyer demand continues to diminish, especially relative to the number of listings coming to market.
Looking at the numbers, sales price as a percent of list price only showed minimal changes across all product types; townhomes actually increased by 0.9% whereas condos and detached homes stayed relatively static compared to the previous month. Where there was significant change, however, was in the average days on market as all product types saw a significant increase. Detached homes lead the way spending 16.1% more time on the market, followed by townhomes and condos at 14.8% and 10.7% respectively.
Yet again, benchmark pricing saw a month-over-month decrease across all product types, however, they remain above the pricing reported in September of last year. We anticipate the downward pressure on pricing will continue as interest and inflation rates proceed to increase. Benchmark prices this past month were as follows:
- Detached Homes: $1,906,400 (- 2.4% MoM)
- Townhomes: $1,048,900 (- 1.9% MoM)
- Condos: $728,500 (- 1.6% MoM)
As it stands, we sit firmly in a balanced market for detached homes and townhomes, whereas condos sit on the cusp but remain in seller’s market territory, though we don’t expect this to last much longer.
What does this mean for development land?
You’ve heard us previously encourage “buying the dip”, but right now most developers are anticipating that the dip is still ahead of us for the Greater Vancouver land market. In fact, many developers anticipate seeing discounts on land in the near future as pressure increases on over leveraged land owners & sellers. And so, the staring contest between buyers and sellers continues.
There seems to be a unanimous sentiment around the toughest time of the declining market is yet to come, however, what has been up for debate is just how challenging it will be and how long it will continue for. The sting of interest rates has significantly impacted buyers in the market, as lending poses to be increasingly challenging; particularly for those that signed up new sites at the peak of the market.
Please note: areas covered by the Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta.
View the Real Estate Board of Greater Vancouver’s entire stats package for September 2022 here.
This representation is based in whole or in part on data generated by the Real Estate Board of Greater Vancouver which assumes no responsibility for its accuracy.