The Greater Vancouver Real Estate Board’s housing market statistics are in for the month of June and it’s evident that the market is still levelling out after substantial growth earlier this year. If we reflect on the record-setting pace at which the market was moving earlier this year, we can see that it peaked in April and it has been pulling back since. The market momentum this past spring wasn’t sustainable, especially when considering the current uncertainty within the wider economic climate as we come out of the third wave of the pandemic.
Despite the slowing sales activity, benchmark prices rose month-over-month in June, albeit marginally, with townhouses gaining by 1.1%, condos by 0.1% and detached homes seeing a 0.03% increase. Over the past 3 months, we can see the steep upward trend of the benchmark price start to plateau, with the past month showing the smallest percentage increase since Winter 2020. We can anticipate prices to continue to plateau and perhaps even decline over the coming months, accompanied by an increase in days on market, as is typically seen over the summer months.
Along with sales decreasing over the past month, the number of active listings also decreased for townhomes and detached homes by 0.7% and 3.9% respectively while condos increased by a mere 1.4%. Considering these changes, we remain firmly planted in a seller’s market for all home types.
SO WHAT DOES THIS MEAN FOR THE DEVELOPMENT LAND MARKET NORTH OF THE FRASER?
While the resale market has cooled somewhat, the market for development land north of the river has remained busy over the course of the last month. We are seeing evidence of developers stretching on pricing and terms for development sites that will facilitate the construction of mid-market housing (i.e. townhouses, wood frame condos and compact single family homes) but the market for high-rise or luxury product remains quiet.
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 2021 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.