If your Vancouver real estate crystal ball is a little cloudy, you’re not alone. The latest report from the Real Estate Board of Greater Vancouver (REBGV) threw a number of mixed signals that will likely confuse both sellers and buyers. This trend was particularly pronounced in the condo market, which represented more than half of all sales in the region. Vancouver condos saw stagnated prices, a stronger than normal seasonal decline, and the twist – an increased rate of absorption.
Condo Prices Stalled
The benchmark average of condos slipped just slightly in November to $512,100. By slightly, I mean slightly – it’s only a $200 decline from last month. This represents an 18% increase from last year, and a less than 0.5% slip from the August 2016 peak. The largest drop was in Vancouver East, which dropped 2.7% from the month prior to $437,800. Burnaby East on the other hand saw an increase of 2.5% to $539,000. The direction of pricing isn’t all that clear at this point.
Vancouver Condo Prices
Condo Sales Declined
Vancouver condo sales are declining very quickly, even when seasonally adjusted. 1,200 sales were booked in November, which represented a 1.9% from the month before, but a drop of 22.7% from the same time last year. The largest decrease was in the Delta region, that experienced a 48.6% increase in condo resales. Conversely, Port Coquitlam saw a 21% increase, the largest in the GVR. Declining sales aren’t necessarily a bad thing by itself, but it does obfuscate the appearance of demand.
Vancouver Condo Sales November 2016
Absorption Remains High
This is an indicator that should have everyone’s ears perking up, absorption is still insanely high – and got a little higher. The rate of absorption reached a whopping 83% for condos, a 20% increase from last month – but a 17% decline from the same time last year. The rate of absorption is what determines if it’s a buyer or seller’s market. When it’s higher than 20%, it’s a seller’s market that will likely experience higher prices, if it falls below 10% – it becomes a buyer’s market and should experience lower prices. That stated, stagnating prices and an increase in absorption is a peculiar combination.
Vancouver Condo Absorption
Like us on Facebook to get fresh real estate insights right in your feed.