Market report sales activity shows signs of improvement

The majority of information reported to new multi-family homebuyers is actually data on re-sales or previously owned homes.

It is not uncommon for developers and builders to list a small fraction of supply on the multiple listing service. This makes it challenging for potential new-home buyers to get the latest on new projects, pricing and the new-home market.

In response to this need, Fifth Avenue Real Estate Marketing Limited produces and shares a quarterly report entitled The Fifth Dimension. The supporting data for this report is objectively collected and presented by Urban Analytics (UA), a leading provider of advisory services on the new multi-family home market. UA has been tracking this market in Metropolitan Vancouver since 1994.

In the recently released edition, overall sales activity in Metro Vancouver’s new-home market continues to be less than robust compared to previous years but is showing signs of improvement.

In the third quarter of 2019, 1,826 new-home sales were recorded, down 47 per cent from the same quarter last year but up eight per cent from last quarter.

Lowrise and townhome sectors performed particularly well compared to the last quarter, both up 11 per cent.

Market conditions have resulted in a lack of new high-rise project launches, which we predict will eventually lead to lower overall inventory levels in the coming year. High-rise projects that sold in the third quarter either offered a unique product, were well-priced, or had significant short-term buyer incentives.

The low-rise condominium sector continued to show signs of improvement compared to earlier in the year. A total of 646 low-rise condominiums were sold in the third quarter, down 46 per cent compared to the third quarter of 2018 but up 11 per cent from last quarter and up 156 per cent from the first quarter of 2019.

Notable sales activity recently occurred at the following projects: Dawson + Sawyer’s Fleetwood Village Condos (Fleetwood); Mosaic’s Parker (Surrey City Centre); Vesta Properties’ Latimer Village Condos (Langley); Polygon’s Elmstone at Westerleigh (Abbotsford); and Realco Properties’ Scott & Nicholson (North Delta).

The townhome sector has also shown noticeable signs of improvement over the past six months. A total of 563 new townhome sales were recorded in the third quarter of 2019, up 27 per cent from last quarter and up 17 per cent from the same quarter last year.

The recovery and forthcoming stability overall are driven by investor and end-user demand in suburban markets in the Valley and Tri Cities. Product in all suburban markets between $300,000 and $550,000 continues to absorb quickly. Adjusted townhome prices in Langley/Surrey are absorbing extremely well, too. While condominiums above $750,000 are moving slower, there are first signs of improvement in the large townhome niche. The primary detractor has been consumer concerns about the resale value of their current property and how long it will take to sell.

All in all, prices have stabilized and volume levels will improve. We project a fourth quarter result of 2,500+ units and foresee a probable 11,000 to 13,000 sales-year in 2020.

For a complimentary copy of this report visit - http://fifthave.ca/a-slowing-market-the-deeper-you-look-the-more-you-see/