Tightening Inventory Keeps Condo Market Competitive
This is a follow up to the Vancouver Condo Report April 2017 which outlined much of what you need to know about the current market. However, I’m always looking to provide more value, and more in depth analysis for you. In this post i’ll cover the average days on market, the sales/actives ratio, and the percentage of multiple offers.
Here’s what we know so far, Vancouver condo sales fell by 21% year over year, new listings plopped by 24%, while prices continued to trend upwards.
Days On Market
The median days on market for Vancouver West condos was 9 days in April. That’s down from the 10 days in March. This is historically very low and highlights just how favourable it is for sellers right now. The typical procedure of hosting weekend open houses followed by offer dates is alive and well. See the chart below for a breakdown of each area.
As I always like to explain, the sales/actives ratio is a key indicator of the temperature of a market. It’s basically how many sales are happening in a given month divided by new listings. Anything above 20% is considered a sellers market. As you can see the sales/actives ratio for Vancouver West condos currently reads 68%, this indicates a very hot sellers market. These types of levels are completely out of the norm, and should not be expected long term.
Number of Multiple Offers
Multiple offers continue to run rampant amidst a flurry of buyers competing for the little inventory available. In April, 44% of Vancouver West condos sold over asking price. This is down slightly from a year ago when it was 56%. However, the trend appears to be up, which is partly seasonal.