Recently a global survey has ranked Vancouver’s luxury market as the second worse performer in the world and worse in North America. It has fallen 7.6% over the 6 months ending this March. Note they are referring to properties that are 3.5M and over, so it is not a market most of us are looking at.
It is true that the overall market is slowing. The sales-to-active listings ratio for all property types (detached homes, townhomes and condos) are all down from last month. Respectively, they are 14.1%, 36.1% and 46.7%. Generally, somewhere between 15% and 20% is considered a balanced market.
While the market is slowing the prices have only dropped for detached properties. Detached homes have dropped 0.2% since last month and up 5.1% in the last 12 month. Townhomes increased 2.3% in the past month, while condos increased 1.1%.
Compared to last year, sales volumes have dropped 33.4% for detached homes, 17.7% for townhomes and 24% for condos. So, inventory is continuing to build up. I suspect the sales-to-active listings will continue to get weaker as well, putting more downward pressure on prices.
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