An article in The Sun yesterday gave up this information;
Supply has outpaced demand in some areas of Greater Vancouver, leading to 'a raised level of uncertainty for both the resale and new home market,' according to MPC Intelligence, which tracks the B.C. new housing market. Here's a look at what came into the market in the 61 days from Sept. 1 to Oct. 31, and what happened to that inventory.
Condominiums
Total: 3,082
Sold: 1,788
Unsold: 1,294
% unsold: 42%
Townhomes
Total: 710
Sold: 438
Unsold: 272
% unsold: 38%
Single Family
Total: 41
Sold: 9
Unsold: 32
% unsold: 78%
This is interesting, and begs the question - is this inventory languishing because -
a) supply has overridden demand in a physical sense? i.e. are there not enough people to fill the units?
b) prices have so far out-stripped reason that people are just not willing to pay that much?
C) the autumn slump that has been observed forever?
I am curious as to why townhomes have the smallest amount of unsold inventory. Did a lot of people buy up from condo's, but can't yet buy up to SFH? Are people less inclined to that product in general?
Are these numbers a harbinger of what's coming? Are the bulls too tired to run anymore? Will the bears wake up hungry in the spring?
I have no idea, but I am encouraged none-the-less.
2 comments:
"I am curious as to why townhomes have the smallest amount of unsold inventory."
Don't know about that. But a dozen couples (cousins and friends) got married in the last 2 years and decided to start a family. Thus, townhouses with a small yard/garden are the only option for them and their parents help with a substantial downpayments.
Must be nice to have nice parents.
I was wondering about the trend, and what you say sounds reasonable.
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