The often debated Vancouver real estate market continues to mystify the masses. A flurry of confusing stats and mixed signals are bombarding Vancouverites. Perhaps most evident in a report released from Royal Lepage leader Phil Soper today. The report states that in the past month, sales in the Vancouver area have leapt forward by close to 50 per cent on a month-over-month basis, better than the seasonal average. “In the coming weeks, it is possible that six months of pent-up demand will be unleashed on the market, sending prices sharply upward again.” Quipped Lepage’s Soper. However, the report failed to mention sales are down 31% year over year across all segments for the Real Estate Board of Greater Vancouver. In fact, one could argue it’s more likely to see six months of pent-up supply, not demand. New listings have plunged by 24% year over year. Through the first three months of 2017 new listings are 19% below the 10 year average. Sellers appear reluctant to sell, perhaps due to a belief that their home will be worth more next year. Or simply an unwillingness to sell and be on the other side of the negotiating table, competing amongst a mob of buyers for the leftover scraps.
With sales hitting all time record highs just a year ago and pulling years of demand forward coupled with an Avalanche of new supply under construction it’s hard to fathom prices shooting sharply upwards again. However, one can never rule out the strength of the Vancouver market and Soper is accurate that parts of the market appear to be heating up. I spoke about it today with CKNW’s Simi Sara. Listen HERE.
