Greater Vancouver condo buyers are having a sudden shift in sentiment. Real Estate Board of Greater Vancouver (REBGV) numbers show price growth continued the trend of rapid price deceleration in September. The deceleration was most likely due to rising inventory and falling sales. The condo market has now exited a seller’s market for the first time in years.

Greater Vancouver Condo Prices Are Up Over 7.4%

The price of a typical condo is a little cheaper in Greater Vancouver. REBGV reported a benchmark price of $687,300 in September, down 1.17% from the month before. The annual pace of growth is still much higher, reaching 7.4%. This month’s buyers are probably pretty happy saved over $8,000 on a typical condo.

Greater Vancouver Condo Apartment Benchmark Price

The price of a typical condo apartment across Greater Vancouver, in Canadian dollars.

Source: REBGV, Better Dwelling.

Worth noting that the annual pace of growth is decelerating very quickly. Last month’s 7.4% follows 8 consecutive months of deceleration. The annual pace of growth is the slowest we’ve seen since August 2015. Let’s not pretend these are bad price gains – it would be a monster climb for any other market. The concern is the speed at which those gains are tapering, indicating a correction may be brewing.

The annual percent change of a typical condo across Greater Vancouver.

Source: REBGV, Better Dwelling.

Greater Vancouver Condos See Median Sale Price Fall Over 5%

The median sale price of a condo in Greater Vancouver is falling lower. REBGV reported a median sale price of $680,000, down 5.55% when compared to last year. The median sale price is not adjusted for quality or size, unlike the benchmark. The indicator is popular with international buyers however.

Greater Vancouver Condo Median Sale Price

The median sale price of a condo apartment across Greater Vancouver, in Canadian dollars.

Source: REBGV, Better Dwelling.

Greater Vancouver Condo Sales Fall Over 44%

Condo sales are falling across Greater Vancouver. REBGV reported 812 sales in September, down 20.78% compared to the month before. When compared to the same month last year, sales are down 44.03%. Both the monthly and annual decline are way larger than expected.

Greater Vancouver Condo Sales Vs. New Listings

The number of condo apartments sold vs new inventory in Greater Vancouver.

Source: REBGV, Better Dwelling.

Greater Vancouver Condo Inventory Soars Over 92%

There’s a whole lot more condo inventory across Greater Vancouver. REBGV reported 2,417 new listings in September, up 39% from the month before. When compared to the same month last year, new listings were 10.92% higher. The rise in new listings helped to push new inventory to highs we haven’t quite seen in some time.

The total number of active listings for condos is higher – way higher. REBGV reported 4,613 active listings in September, up a massive 92.04% when compared to the same month last year. The decline in sales and a rise in active listings pushed the ratio to 17.6, the lowest seen since January 2015. A seller’s market is above 20, a buyer’s market is below 12, and between those numbers is “balanced.”

Greater Vancouver Condo Sales To Active Listings Ratio

The ratio of sales to active listings in Greater Vancouver. Higher ratios mean more pressure on prices to rise.

Source: REBGV, Better Dwelling.

The market is technically “balanced,” but the rapid decline means the market could just be making a brief stop. The speed at which sales are falling and inventory is rising shows a rapid shift in sentiment. The backdrop of higher interest rates and tighter lending conditions aren’t likely to help this trend reverse either.

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