The Greater Vancouver Real Estate Board’s housing market statistics have been released for the month of September and it’s clear that the market momentum we saw this summer has carried into the fall.
The summer trend of above-average home sale volume and historically normal new listing activity persisted last month; this kept supply low, however, it didn’t apply the same pressure on home prices as it did in the spring. September saw home sales for all product types performed 20.8% above the 10-year average for the month, while new listings were down 1.2% from the same time period. The disparity between the volume of sales and listings is going to continue until more inventory is introduced, however, this scarcity restricts purchasing options and so we can expect to see rising home prices in the future.
The HPI benchmark price resumed its upward trajectory in September across all home types. We originally expected this price to plateau, and perhaps even drop, as we entered the fall months, however, this past month may have been a blip in the seasonal norms. Benchmark prices for detached homes, townhomes, and apartments are up 21.3%, 19%, and 8.1%, respectively, over the same month a year ago.
So What does this Mean for Development Land NORTH OF THE FRASER?
The development land market is still active, though not as active as it was in the spring of this year. The majority of activity is focused on development land designated for townhouse and wood-frame condos, which are easier to finance and provide a high-demand, more affordable kind of home for first-time purchasers. Land prices in the inner suburbs, particularly in Burnaby and Coquitlam, are not rebounding as quickly as they are in the Fraser Valley as home buyers flocked to the Fraser Valley during the pandemic in search of more space at a lower price point. Although interest for townhomes has been popular on Burke Mountain, the supply has been so depleted that this has pushed buyers further east as well.
Any available development land sites will present their own set of obstacles (such as servicing, assembly work, and/or location, etc.) as they have been picked over and the straightforward sites have been snatched up. Because of this, sellers are encouraged to be flexible in their pricing and terms while buyers need to be ready to put in some work and get creative to create an excellent development site.
Check out our curated summary of the Real Estate Board of Greater Vancouver’s September 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 September 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.