Vancouver condo

Vancouver Condo Prices Decelerate in June

Steve Saretsky -

The steady as she goes condo market has started to wobble. Despite the noise in the detached market, the condo market has been churning out rather impressive price appreciation. Those days appear to be nearing an end.

The average price per square foot, which has been an accurate gauge of condo prices in a sea of data confusion, officially peaked out in January 2018. Six months later prices have failed to push new highs, despite prices generally pushing new highs in the spring selling season. The average price per square foot now sits at $1034, a 5% increase year over year. While that’s still in positive growth territory, the deceleration of price growth has been noticeable in 2018.

Vancouver condo prices
Vancouver condo price growth

While condo prices have begun to stabilize, this is in large part due to a declining number of buyers. Who knows where they all went but Vancouver condo sales sank 32% year over year in June. There were a total of 475 condo sales this month,  the lowest since June of 2012.

Vancouver condo sales June
Vancouver condo sales for June

As sales have begun to slide, inventory has finally stopped falling. After nearly three years of consistent declines in overall inventory, it pushed higher by jumping 40% on a year over year basis for the month of June. While that’s certainly an incredible jump it’s important to note inventory is still dwindling near all time lows, this will help cushion condo prices in the time being.

Vancouver condo inventory
Vancouver condo inventory

Overall demand remains strong particularly in the one bedroom segment where the sales to actives ratio ticked in at 43%. That’s indicative of a sellers market and is holding up much better than two bedroom units which dipped down to 27%, the lowest mark for the month since June of 2014.

Vancouver condo sales to actives
Sales to actives ratio by bedroom

The number of Vancouver condos sold over the asking price also fell to 28%, down from 56% last year.



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