Vancouver real estate made a sharp turn in the condo market. Real Estate Board of Greater Vancouver (REBGV) stats show that after flatlining for six months last year, prices spent the last five months climbing. In May the market generally saw higher prices, more listings, and less sales.
Prices Hit A New Record
Vancouver condo prices are back to setting records. The benchmark price hit $571,300, a massive 17.8% increase from the same month last year. This is also a 3.1% jump from the month prior. REBGV president Jill Oudil claimed single-family homeowners downsizing to condos added additional pressure to prices. This has resulted in deep pocketed Boomers competing in the same market traditionally driven by first-time buyers.
The average sale price also hit a new record for condos. In May 2016, the average sale price was $659,919, up 3.49% from just last month. The increased average indicates a premium being paid, which is likely attributed to a preference for luxury units.
Condo Inventory Is Slightly Higher Than Last Year
Interesting enough, inventory is also pushing new records. REBGV logged 2,433 listings for the month, a 22.7% jump from the month before. This represents a 0.78% increase from the same time last year. This is the highest inventory has been in at least 2 years.
Condo Sales Declined
Sales showed declines, which means absorption of listings was slightly lower. The board saw 2,150 sales, a decrease of 5.8% from last year. Worth noting that last year was a huge record for condo sales, so the decline in no way marks a cold market. Actually, absorption is slightly lower, but well within range of the first half of 2016. In case you forgot, the market was scorching hot last year.
The minor increase in inventory and the decline in sales shouldn’t technically send prices higher – but it did. A new set of deep pocketed Boomers entering the market without the need to take on massive debt loads might lead to a healthier mortgage book. However, it will most likely bring the floor of home prices up. So go ahead Vancouver millennials, order the avocado toast. It won’t make much of a difference for affordability anytime soon.
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