Sunday, 17 November, 2019

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Greater Vancouver Pre-Sale Real Estate Makes A Big Jump, But So Does Inventory | Better Dwelling

Greater Vancouver pre-sale real estate buyers are returning. MLA Canada data shows a large increase in sales for September. Rising sales commitments were also met with more inventory though. The net impact is weaker inventory absorption than last year, but a lot more choices for buyers.

Greater Vancouver Pre-Sale Inventory Rises 42%

Greater Vancouver saw quite a few new pre-sales units released last month. There were 978 pre-sale units released in September, up 285% from a month before. This represents a 42.2% increase compared to last year. Last month’s numbers came in smaller than forecasted. Most likely, some of September’s inventory was delayed from a month before.

Greater Vancouver New Pre-Sale Real Estate Listings

The number of newly available pre-sale units of new homes across Greater Vancouver.

Source: MLA Canada, Better Dwelling.

Greater Vancouver Pre-Sale Contracts Rise Over 34%

The number of Greater Vancouver pre-sale units sold also made a big climb. There were 352 units sold in September, up 245.1% from the month before. This represents an increase of 34.9% compared to the same month last year. It’s a big increase, but the market was also met with a larger number of units released.

Demand Is Weaker Than Last Year, But Not By Much

Sales made a big increase from last year, but not as much as inventory did. The result is the sales to new listings ratio (SNLR) fell to 36%, compared to 38% this time last year. It’s not a big drop, but its still in range for weak price movements. Generally speaking, if the SNLR is below 40%, it’s a buyer’s market – where prices generally fall. Above 60% is a seller’s market, where prices generally rise. Between 40% and 60% is a balanced market, where prices are just right. Currently we are a little below the balanced mark.

Greater Vancouver New Home Pre-Sale Absorption

The ratio of sales to new listings of pre-sale homes across Greater Vancouver.

*MLA Canada number not available, Better Dwelling estimate based on inference data obtained from MLA.
Source: MLA Canada, Better Dwelling.

Greater Vancouver’s pre-sale market is a little weaker than this time last year.  There was a big rise in sales, however that was met with a bigger increase in inventory. Developers have been holding back inventory recently, waiting for sales to rise. Sales increased, and so did the number of pre-sale units for inventory.

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