July 18, 2018 Mid-Year Market Review 2018 Pre-sale at a 74% Sold Rate in the First Half of 2018

DOWNLOAD THE 2018 MID-YEAR REVIEW

The dedicated team of advisors and industry-leading professionals that make up MLA Canada’s Advisory division have released the 2018 Mid-Year Market Review. The Mid-Year Market Review summarizes the Greater Vancouver and Fraser Valley pre-sale market for the first half of 2018 and forecasts the next six months.

In the first six months of 2018, the Greater Vancouver and Fraser Valley pre-sale market saw a shift away from its hyperactive levels towards more balanced conditions. Even so, multi-family developments achieved a very strong 74 per cent sold rate for the homes that were released during that period.

“The current pre-sale landscape is shifting from its once unsustainable, hyperactive growth to a balanced, more normal market,” says Suzana Goncalves, Chief Advisory Officer and Partner of MLA Canada. “The economic fundamentals including low interest rates, steady employment landscape and continued demand to move to our sought-after city will allow for this steady shift to continue.”

STRONG Q1 AND Q2 PRE-SALE MARKET ACTIVITY

Over the course of 2018, MLA Advisory has been tracking pre-sale inventory releases and same month sales rates to assess current demand versus incoming supply in the Greater Vancouver and Fraser Valley housing markets. The mid-year data shows that although the market has experienced a slight downward trend for pre-sale absorption, the pre-sales market remains active and stable. The sold rate for the 7,753 pre-sale units released across Greater Vancouver and the Fraser Valley during the first and second quarters of 2018 was 74 per cent.

Burnaby North was the most active market, with nearly 1,600 units released in the first half of 2018 and a sold rate of over 91 per cent. New Westminster, West Coquitlam and North Surrey also saw a large number of projects come to market with strong sales, proving that demand remains high for transit-oriented communities.

Q3 AND Q4 PRE-SALE FORECAST

Looking ahead, MLA Advisory is forecasting over 7,700 new homes across Greater Vancouver and the Fraser Valley from July to December 2018. North Vancouver is expected to be the most active Greater Vancouver market for the remainder of 2018 with approximately 11 projects and nearly 1,500 homes scheduled to release. A review of the Fraser Valley shows Langley is leading with 10 new projects bringing over 900 much needed homes to the Lower Mainland.

To read the full Mid-Year Review, click here.