MLA Advisory released their 2018 Mid-Year Market Review this week, a summary of the pre-sale and resale activity in Greater Vancouver and Fraser Valley for the first half of 2018.
Q1 & Q2 2018 MEDIAN RESALE CONDOMINIUM PRICES
MLA Advisory selected 10 sub-markets and mapped out the median resale prices from January to June 2018 for newly built one- and two-bedroom condominium units completed since 2015. On the lower end of the spectrum, a one-bed condominium in Langley has a median price of $387,500 while in Vancouver West, the average price tag for a one-bedroom unit is $687,500 and a two-bedroom unit is almost double at $1.1 million.
RESALE SALES-TO-ACTIVE LISTINGS RATIO
The sales-to-active listings ratio refers to the rate at which homes are selling and how this affects prices. When the sales-to-active listings ratio is above 19 per cent, there is upward pressure on home prices; between 12 to 19 per cent, the ratio indicates a balanced market with nominal movement in home values; and a buyer’s market occurs when the ratio falls below 12 per cent resulting in downward pressure on housing prices.
The resale market for detached homes has wavered between a balanced and buyer’s market for most areas of Greater Vancouver prior to 2018. This slowdown has transcended into the Fraser Valley which is hovering between a seller’s and balanced market, with most sub-markets now experiencing sales-to-active listings ratios under 20 per cent. This trend will continue for the detached market as single-family homes continue to experience minimal growth or reduction in prices during the remainder of 2018.
The resale townhome market remains a seller’s market. MLA Advisory anticipates price growth of approximately 4 to 6 per cent for resale townhomes over the next six months. There will be nominal price changes for townhomes closer to the urban core while areas towards the Fraser Valley will experience more stable price increases as demand remains strong around that region.
Resale condominiums experienced an increased number of listings likely in response to the provincial government’s announcement to introduce further measures to curb speculation. Despite the decrease in sales to listings ratio, the condominium market continues to be the top performing product type as it remains in a seller’s market. Most markets continue to experience modest price growth, and subsequently, MLA Advisory is anticipating stable growth of 5 to 7 per cent for resale condominiums over the remainder of 2018.
To read the full Mid-Year Review, click here.