Sales of new-build homes across Metro Â鶹´«Ã½Ó³»fell by 19 per cent in 2018, according to a report by real estate data company Altus Group issued January 9.
This is a further drop after new home sales fell in the metropolitan region by 33 per cent the previous year.
In its , Altus Group said, “The frenzied pace in the [Metro Vancouver] market has softened with the sales rate at launch moderating, while price growth has stopped and even pulled back in certain segments of the market. A key challenge that has become more apparent as of late has been the price sensitivity of consumers, with higher-priced projects, or those priced above the competition, experiencing below-average sales rates.”
Altus Group reported that the Metro Â鶹´«Ã½Ó³»market had started 2018 as “the tightest of the markets examined, in terms of available new homes, with only 1.8 months of inventory.” However, it added, “[In 2018], new project launches, particularly along transit lines and in the Fraser Valley, have added much needed inventory and boosted the supply to 3.3 months' inventory – although this remains the lowest in the country.”
Altus Group is predicting that sales of new homes in Metro Â鶹´«Ã½Ó³»will slip further in 2019 – although they will remain “at or close to the 10-year sales average for the market.”
The report authors wrote, “The Metro Â鶹´«Ã½Ó³»market, which is currently exhibiting the most potential for downside risk, is expected to see a modest decline in sales volumes as consumers react to higher borrowing costs and developers react to escalating construction costs in the face of lower revenue opportunities.”
