In the most recent quarter of 2018, Metro Vancouver’s multi-family housing market showed mixed results, according to recent numbers from Urban Analytics.
The first half of the year experienced a number of factors leading to a reduction in sales activity, including OSFI regulations and the NDP Government’s new taxation policies. In some circles, this has led to more hesitant – or at least less urgent – buyer choices. Overall, this led to a lower volume of condo and townhome sales for the first half of 2018, but showed some promising figures too, including the demand for new builds.
The volume of sales dropped by 28 per cent from the previous quarter and by 34 per cent from the same quarter in 2017. This can likely be attributed to lower buyer urgency among some groups, but it is also worth noting that it could be a reflection of the 18 per cent fewer units that were released to the market than in the previous quarter of 2018.
Closing the gap
For the first half of 2018, the number of multi-family units sold exceeded the number of units unsold, for the first time in almost three years. This is a positive sign for housing activity in the Metro Vancouver market.
New builds are in demand
Most new-build projects are completed with just a few units available for the general market and despite a lower sales volume in the region overall, only five percent of the nearly 10,500 multi-family homes due to be completed in 2018 are unsold.
What to expect for the rest of 2018
Urban Analytics is predicting a busy remainder of the year, as new projects launch and developers rush to approve new developments before the municipal elections in October. Increased competition combined with more hesitant buyer demographics will make it even more crucial for developers to position their projects in the context of market conditions.