May 2018 Market Update
Much is being made of the fact that sales this month are below the 10-year average. It’s true. Sales in Vancouver for the month of April were 24.5% lower than the 10-year average. The last time we saw sales that low was in April 2013 where there were 766 sales rather than the 771 we saw last month. Broken down, it’s the sales of condos that have slowed down the most (-2.9% m-to-m and -16% y-to-y) while house (+48.44% m-to-m and -31.4% y-to-y) and townhouse (+41.94% m-to-m and -18.29% y-to-y) sales appear to be on the upswing.
The changes made by all levels of government to slow our market appear to be having an effect, now also on the more affordable end of the market. As we expected, the market is adjusting to the new realities. Buyers are being increasingly cautious. Yet, while sales are low prices continue to rise. As of now, there has not been a rise in inventory levels. At 3261 active listings we are currently 13% below the 10-year average. If there’s to be any meaningful correction in prices then we will need to see this inventory level rise dramatically.
We view the current conditions in the market as an opportunity. For the first time in years, condominium buyers have some options in the marketplace. It’s become a much more pleasant experience to purchase. This is likely to continue for the next few months. Certainly into the fall when it will be interesting to see if the current trend continues.