Greater Vancouver pre-sale real estate buyers are returning. MLA Canada data shows a large increase in sales for September. Rising sales commitments were also met with more inventory though. The net impact is weaker inventory absorption than last year, but a lot more choices for buyers.
Greater Vancouver Pre-Sale Inventory Rises 42%
Greater Vancouver saw quite a few new pre-sales units released last month. There were 978 pre-sale units released in September, up 285% from a month before. This represents a 42.2% increase compared to last year. Last month’s numbers came in smaller than forecasted. Most likely, some of September’s inventory was delayed from a month before.
Greater Vancouver New Pre-Sale Real Estate Listings
The number of newly available pre-sale units of new homes across Greater Vancouver.
Source: MLA Canada, Better Dwelling.
Greater Vancouver Pre-Sale Contracts Rise Over 34%
The number of Greater Vancouver pre-sale units sold also made a big climb. There were 352 units sold in September, up 245.1% from the month before. This represents an increase of 34.9% compared to the same month last year. It’s a big increase, but the market was also met with a larger number of units released.
Demand Is Weaker Than Last Year, But Not By Much
Sales made a big increase from last year, but not as much as inventory did. The result is the sales to new listings ratio (SNLR) fell to 36%, compared to 38% this time last year. It’s not a big drop, but its still in range for weak price movements. Generally speaking, if the SNLR is below 40%, it’s a buyer’s market – where prices generally fall. Above 60% is a seller’s market, where prices generally rise. Between 40% and 60% is a balanced market, where prices are just right. Currently we are a little below the balanced mark.
Greater Vancouver New Home Pre-Sale Absorption
The ratio of sales to new listings of pre-sale homes across Greater Vancouver.
*MLA Canada number not available, Better Dwelling estimate based on inference data obtained from MLA.
Source: MLA Canada, Better Dwelling.
Greater Vancouver’s pre-sale market is a little weaker than this time last year. There was a big rise in sales, however that was met with a bigger increase in inventory. Developers have been holding back inventory recently, waiting for sales to rise. Sales increased, and so did the number of pre-sale units for inventory.
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Like magic, inventory just appears every time it’s needed.
If Canada takes more action stopping money laundering, and requiring that foreign buyers pay a tax or are barred from purchasing residential real estate, how low will house prices go? (like many other sane countries do—those with money should only buy commercial real estate).
The problem with Canada is that if one posts comments criticizing someone because of their political views or gender, there is a police department dedicated to investigating such ‘hate crimes’, yet at the same time, a TV documentary did show an incident where a Chinese national was caught with a mil in undeclared monies inside a suitcase, and all the CBSA did was let him go, with the money.
A country can’t police the thoughts of their citizens while allowing crime like that to run amok. It’s a recipe for future civil disobedience because if citizens see that people laundering money through the borders are given free passes, then it means free passes for anything.
makes you wonder about the whole “supply and demand” argument doesn’t it?
These articles and really becoming grating. Why don’t you write an article when Real Estate prices actually goes down for and homes become affordable? Because it never will! It hasn’t for 2 decades are you confident in the next 2?