The momentum recently observed in Greater Vancouver’s residential resale market carried into November with increases in both sales volume as well as index prices for certain product types.
Across Greater Vancouver, sales increased by 55% year-over-year with a total of 2,498 homes trading hands in November. By product type, there were 825 detached home sales, 451 townhouse sales and 1,222 condo sales. Overall, sales for the month came in at 4% above the 10 year average.
2,987 homes were newly listed on the MLS in November, which was a 13.7% decrease compared to the same month last year and a 26.7% decrease from October 2019. Across Metro Vancouver, there are now 10,770 homes listed on the MLS which is a substantial decrease from both last month (12,236) and November 2018 (12,307).
The contraction in inventory, working in combination with continued strong sales, has pushed the sales-to-active listings ratios for multi-family products back into seller’s market territory. Townhomes are sitting at 24.9% and condos reached 29.3%. Detached homes are still considered to be in a balanced market with the sales-to-active listings ratio hovering around 17% for the second consecutive month.
Month over month, index prices increase for detached homes (0.3%) and townhouses (0.2%) while they decreased for condos by 0.2%.
SO WHAT DOES THIS MEAN FOR THE DEVELOPMENT LAND MARKET NORTH OF THE FRASER?
The stabilization observed in Greater Vancouver’s residential resale market over the last two quarters has been a welcome development for both buyers and sellers of residential development land.
Buyers that have been on the sidelines over the last 12-18 months are now starting to look more seriously for their next development site. However, expectations for both lower prices and longer transaction timelines are still present and will likely remain so until there is more competition from buyers in the development land market. Sellers of development land should be encouraged by this moderate increase in buyer activity but need to be aware of what the current market will bear in regard to both price and deal terms.
From a product standpoint, the focus of buyers is still on affordability and transit-oriented condo sites are at the top of many buyer’s wish lists right now. That being said, the interest in sites that offer compact single family development opportunities has increased substantially with numerous groups seeking deals of all sizes.
Check out our curated summary of the Real Estate Board of Greater Vancouver’s November 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 November 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.