The February residential market stats from the Real Estate Board of Greater Vancouver are in and paint a picture of a market that, while quiet compared to historical averages, is showing signs of increased competition for buyers as we head into a much-anticipated Spring market.
Across the board, sale price as a percent of asking price is up, average days on market are down, and while sales volume was down 32.8% year over year and 42.5% compared to the 10-year February sales average, it was up 34.5% compared to January 2019. These increases in month-over-month sales volumes were primarily responsible for the increase in sales to active listing ratios observed across all product types. The overall sales to actives ratio ended the month at 12.8%, which was an increase over the ratio of 10.2% observed in January.
Benchmark pricing for all product types was down 0.3% month-over-month, making February the 8th consecutive month of declines for this metric, but more granular analysis indicates a reversal of this trend for two product types in our core markets north of the Fraser. Condos in Coquitlam saw a 1.5% price increase (breaking a streak of 5 straight months of declines) and detached homes in New Westminster saw a 0.5% increase, breaking a 3 month streak of declines and registering price appreciation for the fifth time in the last twelve months.
What does this mean for development land north of the Fraser? There is a sense of optimism heading into the Spring market that has rarely been seen over the last year. Sales centres are busy with both window shoppers as well as buyers putting pen to paper on new multi-family homes. Several of our developer clients are now comfortable that revenues for multi-family product types have stabilized to the point that it makes sense to acquire accurately priced sites. Well located, well priced multi-family sites are likely to gain popularity heading into the second quarter of 2019, especially among established, well-capitalized groups that have spent the last 10-12 months (or longer in some cases) on the sidelines. The single family market remains slow and well supplied which will likely keep buyer urgency for these development sites in check throughout the Spring.
Check out our curated summary of the Real Estate Board of Greater Vancouver’s February stats in infographics below.
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 February 2019 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.