The June statistics from the Real Estate Board of Greater Vancouver reflect a more balanced market than what has been seen in recent memory. Month over month, sales volumes are down, the number of new listings are down and prices for all product types are relatively flat.
Compared to the 10 year June average, sales volume was down 28.7% and June’s sales to active listings ratio for all product types fell closer to the 20% plateau, which analysts say indicates a balanced market. Broken out by product type, single family homes appear to be creeping into a buyers’ market at 11.7% and townhouse (24.9%) and condo (33.4%) product have started to shift from strong seller’s markets towards a more balanced environment.
Townhouse prices were static across Greater Vancouver month-over-month, while condo prices grew by 0.4%. Single family home prices fell by 0.6%, in what was the largest HPI decrease for houses in the last 12 months. In Frontline Real Estate Services’ core markets of Coquitlam and Burnaby South multi-family pricing continued to rise, townhomes increased by 1.0% and 1.8% respectively and condos increased by 0.2% and 1.1% respectively.
So what does all of this mean? High costs (in the form of both prices and taxes), strict mortgage qualification rules and a relative abundance of supply of single family homes all indicate a quiet detached market heading in to Q3 2018. On the other hand, the multi-family market is experiencing ongoing resale price appreciation, continued seller’s markets conditions, and news of strong sales of new multi-family product. This all appears to forecast a steady multi-family market heading into the Summer months.
Developers working North of the Fraser are still seeking well located, efficient multi-family sites but, due to market uncertainty and rising construction costs, they have taken a more measured approach to acquisitions than in recent memory. Whether this measured approach has an effect on sky high land prices in Greater Vancouver remains to be seen.
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 June 2018 here.