It looked like Vancouver’s condo market was picking up, but it hasn’t made up its mind. Real Estate Board of Greater Vancouver (REBGV) data shows condo prices fell in July. Over the past year, this segment has been relatively weak compared to the rest of the country. Just a few months ago that looked like it was going to change, but now a pullback is already slowing growth.
Greater Vancouver Condo Prices Made a Slight Decline In July
Greater Vancouver condo prices were flat last month, bringing a halt to growth. The benchmark (“typical”) condo reached $736,900 in July, down 0.1% ($700) from the previous month. Prices remain 8.4% ($57,100) higher than they were last year. Significantly higher, actually. Though it’s a little more complicated when the recent picture is unpacked.
Greater Vancouver Condo Benchmark Price
The price of a “typical” condo apartment across Greater Vancouver.
Source: REBGV; Better Dwelling.
Price growth is slowing, and hasn’t moved much over the past few years. Annual growth was 8.9% ($60,300) in June, so the market lost about half a point of growth in a month. Prices are only 2.8% ($20,100) higher than they were 3 years ago, said REBGV. Not exactly the kind of epic returns shown when the annual trend is isolated. Inside of the City was similar to the region, but more extreme.
Greater Vancouver Condo Benchmark Price Change
The annual percent change of REBGV’s benchmark price for a condo apartment.
Source: REBGV; Better Dwelling.
Condos In The City of Vancouver Fell By Thousands In July
Most of the country is seeing suburban growth take the lead, so it isn’t surprising to see the City of Vancouver lag. In Vancouver East, the benchmark price slipped to $632,300 in July, down 0.7% ($4,500) from the month before. Over in pricey Vancouver West, the benchmark reached $829,300, down 0.2% ($1,700) over the same period. Not exactly earth-shattering declines, but declines nonetheless.
Annual growth in the City was booming, but things are cooling down already. July condo prices were 7.1% ($41,900) higher than the same month a year before. Vancouver West was up 4.5% ($35,700) over the same period. Both regions lost about a point in their rate of growth.
Condo Prices Are Pretty Much Flat Over The Past 3 Years
Over the past 3 years though, the market hasn’t been so kind. The Vancouver East condo benchmark is up just 2.3% ($14,200) over that period. Higher annual gains, but they were making up lost time. The increase over the last year doesn’t even cover the current rate of inflation.
Over in Vancouver East prices are actually lower than they were 3 years ago. The benchmark for the region is currently 0.7% ($5,800) lower than it was 3 years ago. Not a lot of money to lose, and price stability is nice. However, it might have been annoying to see the largest price run in Canadian real estate history and be left out.
Greater Vancouver condo prices broke out of its rut earlier this year, but it’s already beginning to cool. The region has lagged the market since the start of the pandemic, and has barely moved over the past 3 years. Somewhat of a mixed view. It’s either a great deal or a terrible one, we’ll find out. Any read giving a clear answer on what’s happening in this segment is only seeing what they want. Not the complicated and mixed picture that exists.
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Condos will be the first to go down in value. Always go for those scarce resources. For example big lot deatched houses within 15mins drive from city center because those units will never be built again. If you consider investors who buy those units and change them into high density units, their supply will only go down. Thats how you retain value, plus those have the side benefits of affording you access to the while city which you cant do if you are off to one side of the city in a suburb.