Strong Sales Keep Upwards Pressure On Prices
For further context you can check out last month’s report here. The condo and townhouse market continued it’s torrid pace in May. Prices continue to rise amidst strong sales and historically low inventory levels. Demand remains red hot, mostly from first time buyers, as i’ve been preaching for quite some time, which was recently highlighted by Better Dwelling here. Let’s breakdown the numbers below.
Condo Sales
REBGV condo sales fell 5% year over year in May. However, they were still a whopping 41% above the 10 year average, as highlighted below.
Condo New Listings/ Inventory
REBGV new listings climbed 1% year over year. This is encouraging as new listings had been trending well below that in recent months. However, new listings are still 4% below the 10 year average and inventory levels are at rock bottom levels. Inventory dropped 31% year over year as new listings were simply not able to keep up with the demand.
Condo Sales/Actives Ratio
The sales/actives ratio which is a key indicator of demand levels in relation to active listings shows how strong the house lust is. REBGV condo sale/actives ratio hit 93% in May, a new record for any month.
REBGV- 93%
Vancouver East- 97%
Vancouver West- 80%
Richmond- 92%
Burnaby- 95%
Condo Prices
Prices continue to trend upwards. The average sales price for REBGV condos is now up 15% year over year.
Condo Summary
The condo market is on a torrid pace. I would say it’s reached a point where it’s hotter than it was last year. The sales/actives ratio is hitting new highs, and with it hovering near 100% this is going to keep a ton of pressure on prices to continue rising. It could take some sort of economic shock in order for prices to slow anytime soon.
Townhouse Sales
Townhouse sales climbed 11% year over year, and were 29% above the 10 year average. Townhouse sales are performing well across different areas and remain well above historical norms.
Townhouse New Listings/Inventory
REBGV Townhouse new listings were down 3% year over year and were 7% below the 10 year average. Inventory levels vary by area but for the most part aren’t doing a whole lot better than a year ago.
Townhouse Sales/Actives Ratio
The townhouse sales/actives ratio continues it’s upwards trend. Currently sitting at 85% for REBGV, it remains slightly below it’s all time high in March, 2016 (91%).
REBGV- 85%
Vancouver East- 70%
Vancouver West- 61%
Richmond- 79%
Burnaby- 85%
Townhouse Prices
Of course with the sales/actives ratio being extremely high and condo prices soaring, townhouses have naturally become more expensive and prices are on the upswing. The average sales price for REBGV townhouses is up 11% year over year.
Townhouse Summary
With every market segment extremely hot, there’s nowhere to turn for affordability. As condos ignited the townhouse market also caught on. The sales/actives ratio is extremely high and prices continue to rise. Again, it’s hard to see conditions changing anytime soon unless we see further government intervention or some sort of outside shock.
