Twelve months ago, MLS sales of high rise, low rise and townhouse condos had been on a steady downward trend for the previous 10 to 11 months. At the rate of decline experienced in 2012, there wouldn’t be much of a market left in 2013. As it turned out, the threat of higher mortgage rates pushed a lot of the pent up demand that built up in 2011 and 2012 off the fence and sales bottomed out.
While MLS condo sales improved in 2013, they didn’t improve as much as MLS single family sales. Compared to total sales in 2012, sales in 2013 were down by 15% for high rise condos, 5% for low rise condos and 3% for townhomes. Sales trends and price trends in most Greater Vancouver MLS markets are flat and will likely stay that way in 2014.
There’s little pent up demand left in this market, any improvement in the local economy is expect to be modest and without more economic growth, net migration figures are unlikely to show much improvement. So like we’ve said before, welcome to the new normal. Get used to it because it may be around for longer than you think.