Single family homes in Vancouver continued to feel some down pressure, but the condo market appears to be stabilizing. The latest numbers from the Real Estate Board of Greater Vancouver (REBGV) show that prices moved higher, sales dropped, and available inventory is being consumed at a strong pace for the industry.
Prices for condos in Vancouver are still on the way up, despite the rest of the market lagging. The benchmark average for a condo in October was $512,300 – a 0.3% increase from the month before, and a 20.5% increase from the same month last year. Not the booming market of yesteryear, but performing better than the average Vancouver home. Single family detached units are actually declining.
Not all areas in the Vancouver region are treated equally however. Statistics from the REBGV are for the whole Vancouver region – including the suburbs. Maple Ridge logged the least expensive condos, with an average benchmark price of $205,500. West Vancouver was not surprisingly the most expensive, with an average benchmark condo price of $899,800.
Vancouver Condo Benchmark Prices
Sales dropped, which is somewhat expected when prices reach higher levels. October logged 1,178 condo sales, which is a decrease of 23.7%. The largest decline was in Vancouver West, where it dropped by 31.5%. Conversely, Maple Ridge had a massive increase of more than 60%. Declining sales by itself isn’t much of a problem, but listings only fell 8%. This means inventory is building faster than it had last year.
Speaking of sales vs listings, absorption rates increased from last month. The current rate of absorption for Vancouver condos is 68%, a change of 14% from last month. This number is very high for industry standards, but 18% lower than last year. Generally speaking, absorption rates above 20% mean prices will continue to rise, below 10% means prices will come down. Between that is a balanced market. In a market that’s as high flying as Vancouver, momentum and individual buyer/seller circumstances propel movements faster though.
Vancouver Condo Absorption
The market may not have been as hot as last year, but demand and prices for condos hasn’t dropped as quickly as single family homes. Vancouver real estate may be wobbly, but it isn’t quite crashing.