Vancouver Sun

Downtown condo listings decrease for first time in months

Average price still dropped in November, and supply of units remains abundant

- JOANNE LEE- YOUNG jlee-young@postmedia.com

The number of downtown Vancouver condos listed for sale, but not selling, has been on the rise for most of this past year.

But after increasing steadily from a low of 438 listings last December, the number changed course recently and decreased 10 per cent, from 1,152 in October to 1,027 in November.

That is a small improvemen­t in a micro-market that includes Coal Harbour, Downtown, West End and Yaletown, where increasing inventory has been more pronounced and where median prices have been falling. When the inventory hit 1,085 listings in August, it was the first time the number of active listings had been over 1,000 since May 2014.

During the pandemic, condo sales have paled against those of detached homes, which have been faring well as buyers gravitate toward detached homes with more space and privacy, away from the city core.

Even with the November shift in downtown listings, there was still a record number of more than 2,000 condo listings across Metro Vancouver.

“Downtown is a different world,” said Vancouver realtor Ian Watt, who quoted the figures about downtown from SnapStats Publishing. “Metrotown, Brentwood (in Burnaby), Richmond and Surrey can just keep oversupply­ing demand. But how many more can they build in Yaletown?”

Vancouver realtor Steve Saretsky said in his latest report that across Metro Vancouver, condo sales were up 13 per cent year over year, but “the problem ... continues to be the persistent strength in new listings.”

“While sales remain quite strong, new listings remain even stronger,” he wrote. “This has created a scenario where inventory levels remain at a six-year high for the month of November.”

Considerin­g the low number of listings during the previous years that drove intense price gains, Saretsky says having the current 4.2 months of supply of listings to sell could be seen as a healthier balance.

It is still enough inventory to push down prices. In November, the average condo sold price per square foot tipped into negative territory, falling 0.5 per cent year on year.

Saretsky said reports about positive price increases in the condo market are based on the MLS benchmark price, “which is a lagging indicator.”

The benchmark price of a condo in November, as reported by the Real Estate Board of Greater Vancouver, was $676,500, which represents a 3.4 per cent yearon-year increase and a one per cent decrease from the previous month.

“There is no question the condo market has been undergoing a modest price correction since the pandemic,” wrote Saretsky.

 ?? MIKE BELL ?? The downtown micro-market includes Coal Harbour, above, Downtown, West End and Yaletown. A realtor says with more than 2,000 condo units on the Metro market, the region may have reached a healthier balance.
MIKE BELL The downtown micro-market includes Coal Harbour, above, Downtown, West End and Yaletown. A realtor says with more than 2,000 condo units on the Metro market, the region may have reached a healthier balance.

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