Greater Vancouver Sees Biggest Single-Month Surge Of Inventory In Half A Decade

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Written on July 28th, 2020

Wondering why the market has been so heated during the pandemic? Condo owners decided they wanted more space after being cooped up and working from home. This set the entry level detached market on fire and we saw a trickle up effect. Read on to find out more.

A lot of Greater Vancouver condo owners all had the same idea – last month was the perfect month to sell. Real Estate Board of Greater Vancouver(REBGV) data shows June saw the largest single-month surge of new condo apartment listings in at least half a decade. While sales did also rise from last year’s lows, the number of new listings were enough to push prices lower from peak.

Greater Vancouver Condo Prices Fall Further From Peak

Greater Vancouver condo apartment prices have been slipping for several months, but are still higher than last year. Across REBGV the typical condo apartment cost $680,800 in June, up 3.6% from a year before. In the City, Vancouver East condos had a benchmark of $588,400, up 3.1% from a year before. In Vancouver West, the condo benchmark reached $789,300, up 6.0% from a year before. While all of these numbers are higher than last year, all of these benchmarks are dropping further from the peak.

All three benchmarks are seeing the rate of growth rise, but prices falling further from the peak. The 3.6% 12-month increase for June is higher than the month before. However, June was also the third consecutive month of price declines. Greater Vancouver condo prices are now down 5.6% from the peak in June 2018. Just a month before, they were only down 4.8% from the peak. Prices are higher than a year before due to the delayed seasonal curve, but are still falling from the peak.

Greater Vancouver Condo Sales Are Higher Than Last Year

Greater Vancouver condo sales are moving higher than last year. REBGV saw 1,105 sales in June, up 69.2% from a month before. This represents an increase of 17.4%, when compared to the same month last year. Last year was a multi-decade low, at nearly half of June 2016’s volume. Easy beat, but a beat during a pandemic nonetheless.

New Listings For Vancouver Condos See Highest Level In Half A Decade

Greater Vancouver hasn’t seen this many new listings for condos in a single month for a very long time. REBGV saw 2,818 new condo listings in June, up 55.8% from a month before. This represents an increase of 34.1% compared to the same month last year. No single month has seen this many new listings in at least half a year.

The big surge of new condo listings helped to push inventory higher than the month before, but it’s still lower than last year. REBGV reported 5,192 active listings in June, up 17.94% from a month before. Despite this big increase, inventory is still 13.2% lower than the same month last year. Other than last year, Vancouver hasn’t seen this kind of condo apartment inventory since June 2015.

Greater Vancouver condo prices haven’t seen a return to their 2018 peak, and are falling from the annual high. Prices have consistently slipped since the onset of the pandemic, despite a bump in sales. Even though total inventory is lower, new listings are hitting the market at such a rapid pace, it’s killing price gains.

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© Better Dwelling July 2020

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