New Listings Beginning to Normalize In First Few Weeks of May
Early numbers are starting to suggest the listing purge could be nearing an end. Over the last few months new listings have been abnormally low, helping reignite multiple offers across various market segments and areas. New listings have been trending 20-30% below last years levels as sellers patiently sit on the sidelines. However, in the first couple weeks of May, sellers are emerging once again. While it’s still early, it’s an encouraging sign for a market that’s in desperate need of inventory.
REBGV Detached
Detached sales have been trending well below normal levels. Despite gathering some momentum in recent months they are still dwindling behind last years totals. Through the first 15 days of May, sales are down 17% year over year. With that being said, the current 747 sales are not far off the 10 year average. Meanwhile, new Listings are virtually identical to last year for this time period. A nice turnaround after a pathetic start to 2017. Time will tell if this recent uptick is sustainable. For the first 15 days of May new listings are just 4% below the 10 year average. Not bad.
REBGV Townhouse
REBGV townhouse sales are up nearly 26% year over year. This is a substantial uptick and perhaps highlights the shift away from the detached market which has become a pipe dream for most locals. With that being said, sales are still slightly off from it’s 2015 high. Townhouse new listings are close to normal and have climbed year over year by 8%. Here’s how it shakes up.
REBGV Condo
The condo market continues to perform exceptionally well. The introduction of the BC Government’s first time home buyer program has added additional FOMO to the market. This has pushed up prices and has sales trending upwards. Through May 15, the condo market had 993 sales, just above last years high of 991 sales. Much of the price gains have been due to ridiculously low inventory levels. New listings in the condo market have been almost 20% below last years levels. However, through early parts of May new listings have been surging and are now above last years totals. Condo buyers should hope this trend continues, although inventory levels remain critically low.
Summary
As always, a two week data set is much too small to draw an immediate conclusion. However, early signs point to new listings recovering across all market segments. This is an encouraging sign for inventory starved buyers. There’s no question it will take months for overall inventory levels to begin creeping upwards again. Therefor, despite new listings picking up don’t expect any break on prices, at least not yet.
