Condo Prices Hit New Highs, Inventory Remains Scarce

The Vancouver condo market remains as hot as ever. Similar to Vancouver Condo Report January 2017 inventory remains at record low levels despite sales falling. Multiple offers are heating up as buyers compete for the dismal amount of supply available. Full break down of the February numbers below.

Sales

Area/Year20172016201520142013
Vancouver West368549397321252
Downtown 851511037359
Yaletown6068564744
West End4861523432
Kitsilano 3236312827
False Creek1831212514

Vancouver West condo sales fell 33% year over year for the month of February. Sales were virtually right on par with the 10 year average of 371 sales. Unlike the detached market, the drop in condo sales is more a result of ultra low inventory levels than from a big drop off in demand. Inventory is 21% lower than February 2016.

Average Days On Market

Vancouver West- 21 days
Downtown- 18 days
Yaletown- 27 days
West End-27 days
Kitsilano- 11 days
False Creek- 17 days

Average days on market Vancouver Condos
Average Days on Market for Vancouver West Condos

Vancouver condos are selling quickly. Again this comes as no surprise as there is simply not enough inventory. Activity is picking up and has brought the average days on market down from 34 days in December and January to just 21 days in February. This month, 32% of Vancouver condos sold over asking price, up from last month but down from February 2016 which saw 48% of condos sell over asking.

Inventory Levels

Vancouver West- 1.9
Downtown- 1.8
Yaletown- 2.1
West End- 1.5
Kitsilano- 1
False Creek- 2.7

month of inventory REBGV
Months of Inventory Breakdown

Inventory levels are at all time lows for the month of February. It is currently at critical levels. Sellers are simply not selling, new listings were down 33% year over year. Ultimately this could get worse before it get’s better. It is not a fun time to be a Vancouver condo buyer as scarce inventory has resulted in bidding wars. The graph below highlights just how few inventory is available.

Vancouver condo inventory
Vancouver Condo Inventory Falls 21%

Vancouver Condo Prices
Vancouver condo price per square footClick Here to Access Average Price Per Square foot Prices. 

Summary

Vancouver condo prices are hitting new highs in many buildings. After a small drop of about 5% during the fall and winter months it appears to be fighting it’s way back to new highs. This is a little surprising due to the state of the detached market, however with inventory at record lows and the sales to actives ratio at a staggering 54% there is reason to believe prices will continue to climb in the spring. Unless we see a substantial increase of new listings don’t expect things to change anytime soon.