Condo Sales Fall Again, Inventory Levels Remain Critically Low
The Vancouver condo market remains quite hot. Sales continue to fall, following a similar trend to (December Condo Report December 2016) however, because inventory is still at historically low levels buyers are still stuck competing for the few condos available. This is causing some multiple offer situations which can lead to price increases.
Here’s a five year history of Vancouver condo sales for the month of January.
Vancouver condo sales fell across the board from one year earlier. Using a larger data set, Vancouver west condos fell 30% year over year. Condo sales were also 7% below the 10 year average for January.
Average Days On Market
Vancouver West- 33 days
Downtown- 40 days
Yaletown- 23 days
West End- 23 days
Kitsilano- 29 days
False Creek- 35 days
Vancouver condos are selling quickly. This is primarily because inventory remains scarce, especially at the lower end of the market (anything under $600,000). However, days on market is up 3% from the same time one year ago. As we head towards the spring market things generally tend to sell quicker so it’s likely days on market drops in the coming months.
Months of inventory indicates how many months of inventory we currently have given the pace of sales and new listing hitting the market. It’s generally a helpful indicator to gauge supply and demand.
Vancouver West- 3.2
West End- 4.75
False Creek- 3.9
Months of inventory varies across the board. Some areas are in what’s considered a balanced market, however I wouldn’t look to much into that. For the most part these areas all favour the sellers still. It appears to be more a balanced market at the higher end. Further, the absorption rate (sales/new listings) for Vancouver West condos was 43%. This is something to keep a close eye on.
List/sells of over 75% tend to lead to price increases. Times, when our market is slowing tend to have list/sells below 50%.
Vancouver Condo Prices
As per the MLS benchmark Vancouver condo prices are down 5% from the peak in June. This is something I have been talking about for the past few months and it appears the benchmark has finally caught up. However, as you can see in the average price per square foot, it appears prices have rebounded a bit. From my perspective it looks like condos have gained some ground recently amidst multiple offers resurfacing a bit this month. Hard to put a finger on the exact number as it’s almost a case by case basis.