Vancouver

Vancouver Condo Prices Make Largest Single Month Price Drop… Ever

Greater Vancouver condo prices are cooling down in a big way. Real Estate Board of Greater Vancouver (REBGV) numbers show price appreciation has fallen to a multi-year low in November. The slowing growth was accompanied by plummeting sales, and soaring inventory.

Greater Vancouver Condo Prices Dropped Over $15k Last Month

The price of a condo apartment in Greater Vancouver is higher than last year, but made a sharp decline. REBGV reported a condo benchmark of $667,800 in November, down 2.29% from the month before. The decline brings the annual rate of growth to just 2.3% across the board. In the city, prices are doing a little worse. Vancouver East’s typical condo price reached $551,400, up 2% from last year. Vancouver West saw the typical price come in at $781,900, down 3.6% from last year. Yeah, they’re falling behind CPI at best.

Greater Vancouver Condo Apartment Benchmark Price

The price of a typical condo apartment across Greater Vancouver, in Canadian dollars.

Source: REBGV, Better Dwelling.

The sharp monthly decline and tapering annual gains are worth paying attention to. The $15,700 monthly decline is the largest single month dollar decline the condo benchmark has ever seen. The 2.3% annual gain marks the 10th consecutive month of deceleration. The annual pace of growth is also the slowest we’ve seen since December 2013.

Greater Vancouver Condo Benchmark Price Change

The annual percent change of a typical condo across Greater Vancouver.

Source: REBGV, Better Dwelling.

Greater Vancouver Condo Sales Fall Over 46%

Sales of condos in Greater Vancouver are falling quickly. REBGV reported 810 sales in November, down 17.76% from the month before. Compared to the same month last year, sales are now down over 46.3% – a huge drop. The monthly decline is interesting, but not all that important. The annual decline is kind of a big deal though. This was the weakest November for condo sales since 2012.

Greater Vancouver Condo Sales Vs. New Listings

The number of condo apartments sold vs new inventory in Greater Vancouver.

Source: REBGV, Better Dwelling.

Greater Vancouver Condo Inventory Is Up Over 84%

The total number of new listings for condos climbed in Greater Vancouver. There were 1,660 new condo listings in November, down 28.23% from the month before. Even with the monthly decline, new listings were 10% higher than the same month last year. The rising number of listings helped to push total condo inventory much higher.

The total number of active listings for condos in Greater Vancouver is soaring. There were 4,602 active listings in November, down 4.6% from the month before. The monthly decline did little, with the month still coming in 84.44% higher than last year.

The rising inventory and falling sales sent the sales to active listings ratio lower. The ratio fell to 17.6% in November, compared to 67.80 in November 2017. Generally speaking, the market sees lower prices below 12%, and higher above 20%. The market is balanced between those two numbers. We’re “balanced,” but caution should be exercised when the ratio hasn’t yet stabilized.

Greater Vancouver Condo Sales To Active Listings Ratio

The ratio of sales to active listings in Greater Vancouver. Higher ratios mean more pressure on prices to rise.

Source: REBGV, Better Dwelling.

Greater Vancouver condos have printed huge price gains over the past few years. Those gains are slowing fast, as prices see multi-year lows for appreciation. The decline is mostly the result of rising inventory, and sales declines. Both of those issues aren’t something that fixes itself quickly.

Like this post? Like us on Facebook for the next one in your feed.

8 Comments

COMMENT POLICY:
We encourage you to have a civil discussion. Note that reads "civil," which means don't act like jerks to each other. Still unclear? No name-calling, racism, or hate speech. Seriously, you're adults – act like it.

Any comments that violates these simple rules, will be removed promptly – along with your full comment history. Oh yeah, you'll also lose further commenting privileges. So if your comments disappear, it's not because the illuminati is screening you because they hate the truth, it's because you violated our simple rules.

  • Reply
    Skylar 5 months ago

    Dreadful. I like it.
    Vindicating actually seeing this is the benchmark price, which is lagging and generally a puffed up Indicator.

  • Reply
    Saab 5 months ago

    Important to remember the benchmark is a six month average. For a sudden drop like that, it had to be REALLY big.

  • Reply
    Mtl_matt 5 months ago

    All that’s missing is record low construction starts and record high foreclosures for a really fun time.

  • Reply
    DB 5 months ago

    Interesting interview takeaway: I can see how it also can apply to Canadian RE
    now that I see the party is winding down here I guess it’s time to run for cover.

    Washington (CNN Business)Alan Greenspan says the party’s over on Wall Street.
    The former Federal Reserve chairman who famously warned more than two decades ago about “irrational exuberance” in the stock market doesn’t see equity prices going any higher than they are now.
    “It would be very surprising to see it sort of stabilize here, and then take off,” Greenspan said in an interview with CNN anchor Julia Chatterley.
    He added that markets could still go up further — but warned investors that the correction would be painful: “At the end of that run, run for cover.”

  • Reply
    Bluetheimpala 5 months ago

    Shiiiiittt slurrrryyy! Just wait. I don’t relish this reality but there is nothing to stop it. Tick tock. BD4L.

  • Reply
    Lessdenadalla 5 months ago

    Luxury market peaked in Q4 2016, detached in Q3 2017 and condo segment in Q2 of 2018. From now on, expect to see further sales and price declines. Nobody knows where’s the bottom, but judging on historical credit cycles it could be at least 4-5 years away. Fasten your seatbelts!

Leave a Reply

Your email address will not be published. Required fields are marked *