Condo’s Now Driving Metro Vancouver’s Real Estate Market I’ve been highlighting for quite some time just how segmented the market really is. It’s why it bothers me when some real estate reports group all three markets (Single family, townhouse, and condos) and spew out one single number. The reality is that the detached market has taken the brunt of the correction. I’ve also argued in a previous post (Are we in Denial?) that there is a strong likelihood the correction will eventually trickle it’s way through the market as it did previously on the way up. Perhaps that’s all speculation at this point but the sales numbers indicate no market segment is going untouched. Regardless, as it stands right now, there’s a new conductor of the real estate gravy train. The condo market has taken over and is pushing full steam ahead in an effort to keep this train rolling. Below you’ll see a breakdown of sales composition by segment. Back in January, 2016 condo and single family homes had an equal share of the market at 43% of total sales across REBGV. By December 2016 condos were responsible for 54% of all sales, while single family homes plopped to

CMHC Highlights Shifting Market Conditions in Vancouver Today the boys over at CMHC (Canada Mortgage and Housing Corporation) released their first report of 2017 on the Vancouver real estate market. Full report here. To little surprise, CMHC once again declared Vancouver as overvalued. However, in the process they also announced a cooling market and no signs of overbuilding. Let’s break it down. Overheating CMHC believes there is now weak evidence of overheating in the market. REBGV detached sales were down 52% year over year in December, townhouses 40% and condos 25% so really no shock there. Meanwhile,  sales/new listings which is a key indicator of demand fell again for the second quarter. The general rule of thumb is a sales/new listings ratio above 75% puts upwards pressure on prices, while below 50% puts a downward pressure on prices. However, it’s important to note that this chart combines all three markets (detached, townhouse, condos). They are all performing differently. Much of the downfall is from the detached market. Price Acceleration The report calls for signs of moderate evidence of price acceleration. “The low supply of new and resale homes provided support to home prices. Going forward, a moderation in sales and additions