Vancouver condo sales are on the decline, but a drop in new listings is leaving the city short on inventory. The latest from the Real Estate Board of Greater Vancouver (REBGV) shows condo inventory was lower than detached units in April. Even with a large drop in sales, this is resulting in prices pushing higher.
Condo Prices Rise
The benchmark price of condos in Vancouver moved higher. The price climbed 3.1% from last month to $554,100. This represents a massive 16.6% increase from the same time last year. Prices moved higher for the third month in a row, following 5 months of lateral movements.
Breaking down the REBGV territory, all regions saw a steep climb. Squamish saw the largest single month increase, with prices rising 4.5% from the month prior. This brings the benchmark in the area to $394,700, a 21.9% increase from the same time last year. The “slowest” rising prices last month were in Maple Ridge, where prices climbed 0.9% to $218,500. This brings the region up 18.1% from the same time last year. Even the “slowest” region saw prices increase faster than most Canadian cities.
Condo Listings Declined
Condo inventory is looking a little light. There were 1,983 listings in April 2017, a 17.85% decline from the same time last year. To give you an impression of how few listings that is, there were 2,091 detached homes listed during the same time. This means condos were more scarce than detached homes in April. Interesting considering the price point for detached units is so much higher.
Condo Sales Declined
Condo sales also experienced a massive drop from last year. 1,722 condo sales went through the REBGV, a 19.9% decline from the same time last year. The large drop was pretty close to the decline in inventory. This leads to a similar rate of absorption as last year, which buyers likely used to justify higher prices.
Sales did drop faster than condo inventory, but by not by a whole lot. The number of condos on the market is now lower than the “rare” detached units everyone was competing over last year. It’ll be interesting to see if Vancouver buyers will send prices parabolic like they did with detached homes in 2016.