New Listings & Sales Continue Downward Trend
The Vancouver real estate market continues to turn heads midway through April. A puzzling phenomenon is underway as new listings evaporate and sellers refuse to cash out in perhaps the hottest sellers market of all time. The drought of new listings is rippling through all market segments. Let’s start with the detached market.
Detached sales are down 43% compared to the same time last year. Not much has changed here. However, new listings are also down 42%, this is keeping prices firmed up. Demand is not nearly what it was a year ago, so obviously if new listings should return to more normal levels we could start seeing prices move downwards. However, until that happens it’s merely speculation. Here’s the 10 year correlation between sales and new listings.
The condo market is also experiencing a drop in sales and new listings. Sales are down 29% year over year, new listings also plunged 29%. Sales are still tracking above normal levels and i’d argue they’d be higher if we had more inventory. The demand is definitely there right now.
The townhouse market is still humming along, and favouring the sellers. It’s not as hot as the condo market but not as cold as the detached market either. Again a similar pattern can be seen with sales and new listings falling. Sales are down 20%, new listings are down 14%.
The big story remains the drop in new listings. It has helped the detached show signs of life once again, while keeping prices relatively flat (depending on area and price point). Meanwhile, the drop in new listings in the condo market has made things even worse, sparking irrational bidding wars and higher prices. According to a recent survey, 41% of Canadians with plans to sell their property are doing so to cash in and make a profit, however 62% say the cost of buying another house is making them “reluctant to sell.”
Perhaps this answers the recent plunge in new listings…