Loan Approvals and Multiple Offers Booming in Condo Market
As I mentioned in a recent post, there’s an Entry Level Feeding Frenzy in the condo market. Prices and sales are picking right back up from the dark winter months, despite the detached market crumbling.
I believe there’s a strong possibility this could be fuelled in part from Christy Clark’s first time buyer loan program.
As CTV News reports, 356 first timers have already been approved since the program began taking applications January 16, 2017. Just to put that into context, in January there were 828 condo sales in Greater Vancouver, and 276 sales in the Fraser Valley.
Although some of the loans will go to buyers in other markets such as Victoria, or the Okanagan. Nonetheless, the condo market in the lower mainland was not ready for any surplus of demand. It was and is still in the process of recovering from record low inventory levels.
This especially holds true in the Fraser Valley where entry level condos were in high demand. The Fraser Valley condo market didn’t heat up until February 2016 and with or without the home loan program still had plenty of wind left in the sails. In January condo sales were up 42% year over year. Meanwhile, the sales to actives ratio still sits at an unhealthy 45%. (Anything above 20% is a sellers market).
Perhaps even more worrisome, the trend is still alive and well today. Multiple offers are booming in the Valley. Through the first 11 days of February, 37% of condos sold over asking price.
Despite the detached market crumbling, the good times roll on for the condo market…