Vancouver Condo Market Goes Flat in April

Steve Saretsky -

With the Vancouver detached market cratering, home sales fell 31% in April to their lowest total since the Real Estate Board of Greater Vancouver began collecting data, all eyes are focused on the condo market. The resilient condo segment has been propelling the entire Vancouver Real Estate market forward.

However, with affordability quickly eroding, and borrowing costs inching increasingly higher the condo segment may finally be beginning to crack. Sales in the city of Vancouver dropped 18% year over year for the month of April, a five year low.

Vancouver condo sales April
Vancouver condo sales history for the month of April.

Meanwhile, price growth has been decelerating. The average and median sales price grew 12% year over year for the month of April. While this is still impressive growth it pales in comparison to the 30% annual growth homeowners have become accustomed to. Further, price growth appears to have stalled over the past four months. The average price per square foot now sits at $1098 in the city of Vancouver.

Vancouver condo prices
Vancouver Condo Average Price Per Square Foot

The sales to actives ratio still sits at a relatively high 41%, suggesting there is still some upwards pressure on prices moving forward. Although, it is down 25% from the same period one year ago. New listings also climbed a whopping 34% year over year, this is partly due to new housing completions ramping up to a record high in recent months. As a result, this pushed total active inventory up 8.5%.

Falling sales combined with a tightening of mortgage conditions and a staggering 42,000 housing units currently under construction, a record high, will surely alter market conditions moving forward.

Per Rate Spy, following last weeks mortgage rate increases from RBC, CIBC and TD bank, it appears likely the new mortgage qualifying rate will jump to 5.34% next week. In other words, the mortgage stress test benchmark is moving higher. Reducing borrowing power by an additional 1.5%.



Join the Monday Newsletter

Every Monday morning you'll receive a short and entertaining round-up of news on the Vancouver & Canadian Real Estate markets.

"*" indicates required fields

The Canadian Economy

Steve Saretsky -

Happy Monday Morning! We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC...

Steve Saretsky -

The calls for impending interest rate hikes continues. CIBC’s chief economist, Benjamin Tal, was out recently suggesting the Bank of Canada could hike its benchmark interest rate at least six times beginning in early 2022. “I think there is a risk of getting into the market at today’s rates,” noted Tal....

Steve Saretsky -

The BC Government announced it is looking at several cooling measures for the housing market in 2022. They have highlighted two measures. The first is an end to the blind bidding process, and the other is a mandatory “cooling off period” which will allow any buyer a 7 day recession...

Steve Saretsky -

The Bank of Canada continues to slowly drain liquidity after flooding the system with a firehose of cash during the pandemic. Bank of Canada governor Tiff Macklem announced the end of Canada’s QE program (also known as money printing). Furthermore, in Macklems words, “We expect to begin increasing our policy...

Steve Saretsky -

Consumer price inflation ripped higher in September, surging 4.4% year-over-year, the fastest pace of price increases in 18 years. Let’s discuss this further. We have an inflation problem and the Bank of Canada remains of the view that inflation will be transitory. Although they really can’t say otherwise, for if...

Get the Saretsky Report to your email every month

The Saretsky Report. December 2022