Greater Vancouver real estate is seeing the new condo pre-sale market get hit hard. MLA Canada, a prominent Vancouver real estate marketing and analytics firm, numbers show condo apartment sales fell in April. The decline in sales has led to weaker absorption of new project launches. Developers plan to delay thousands of units, in anticipation of better market conditions.

Greater Vancouver Condo Sales Fall Over 54%

Reflecting the resale market, new condo apartment sales are falling across Greater Vancouver. There were an estimated 173 sales in April, down 23.82% from the month before. The drop represents a 54.22% decline compared last year. Recently Greater Vancouver has seen an increase for April’s monthly number.

New Condo Inventory Is Down Slightly From Last Year

New condo listings for the month fell, when compared to last year. There were 865 new condo units launched in April, up 6.65% from the month before. This represents a 1.59% decline compared to the same month last year. Down slightly, but not a huge change. MLA estimates almost 5,000 concrete units have postponed launch for “more favorable market conditions.”

Greater Vancouver New Pre-Sale Real Estate Listings

The number of newly available pre-sale units of new homes across Greater Vancouver.

*MLA estimate.

Source: MLA Canada, Better Dwelling.

Weak Absorption Could Lead To Lower Prices

New inventory may not be launching, but declining sales may create a bit of an issue in the next few months. The sales to new listings ratio (SALR) fell to 20% in April, down 28.57% from the month before. This represents a decline of 53.49% from last year. The market is a seller’s market when the SALR is above 60% – where prices are expected to fall. Below 40%, and the market is considered a buyer’s market – where prices are expected to drop. Between 40% and 60% and the market is considered balanced, where prices are just right.

Greater Vancouver New Home Pre-Sale Absorption

The ratio of sales to new listings of pre-sale homes across Greater Vancouver.

*MLA Canada number not available, Better Dwelling estimate based on inference data obtained from MLA.

Source: MLA Canada, Better Dwelling.

The Greater Vancouver condo market has slowed down in recent months, so this isn’t just a pre-sale issue. Softer absorption most likely means near term weakness in prices, which has caused developers to delay projects.

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