Following their detached counterpart, condo sales were historically weak in April. Sales fell 30% from last year, and hit their lowest total for the month since April 2001. Indeed the 18 year low comes as buyers shift to the sidelines and wait for sellers to lower their prices, particularly given the significant declines in the prices for a detached home.
Indeed buyers wishes are being granted as inventory in the condo market continues to grow at a rapid pace. Inventory for sale increased 75% year-over-year and pushed the months of inventory to 6.3. Anything above 6 months is considered to favour the buyer in terms of negotiations. New listings also increased by 5% from last year. While inventory is growing and now favour the buyers it is not overly elevated, although we suspect if this trend continues it will certainly become more of a problem.
Condo prices are declining noticeably now after peaking over a year ago. The average price per square foot for a Vancouver condo declined by 14.4% year-over-year. It’s important to note that the average price per square foot has historically been a very consistent and reliable price metric with much less volatility. This movement falls in line with what we are seeing from a feet on the ground perspective. No doubt the price discovery for condos has been much quicker than detached houses. Per the MLS benchmark condo prices were down a more conservative 7.5% year-over-year.
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