Lower Mainland homebuyers will have fewer brand new pre-sale condo units to choose from in August, a new monthly forecast suggests.
MLA Advisory, the research branch of real estate marketing firm MLA Canada, estimates upwards of 600 new pre-construction homes will be released throughout the Greater Vancouver and Fraser Valley region this month as the market undergoes a prolonged cooldown.
That’s down from the more than 1,000 pre-sale units released in August 2018 and represents a 42-percent decline, according to MLA’s July 2019 Pre-Sale Real Estate Insights.
“This year-over-year decrease in inventory is due to a number of townhome projects releasing minimal inventory to test interest within the marketplace in addition to postponed project launches,” reads the MLA report.
Last August’s unit total was bolstered by a number of new higher-density concrete buildings, which are typically taller than their wood-frame counterparts and contain more homes.
Although this August’s overall projected volume is lower, the 600 units are spread across seven new projects, which matches the number of communities launched at this time last year. And a backlog of unsold previously released units also creates more choice for home shoppers.
Of the new units expected to hit the market this month, roughly a third are in townhome and lower-density wood-framed communities in the Fraser Valley.
MLA notes that wood-frame projects are making “great strides in the market,” whether in Greater Vancouver or the Fraser Valley.
Between January and July, MLA estimates that homebuyers have entered into contracts to purchase a third of the 1,500 pre-sale condos released in wood-frame projects this year.
“This is an indication of strong and stable demand from end-users and ﬁrst-time home buyers searching for value in a more affordable product type,” the MLA report reads.
West Coquitlam, Abbotsford, Delta and North Burnaby are some of the markets MLA says are appealing to homebuyers due to their relative affordability.
“The bright spots in the market continues to show us that well-conceived homes priced competitively and providing value to end users in their markets remain active,” says MLA Partner Suzana Goncalves.
“Developer reputation, location including proximity to transit or arterial routes, and strong utility within price ceilings are all top of mind factors for today’s buyers,” Goncalves explains.
Here’s What to Expect for Vancouver’s New Condo Market as Summer 2019 Ends by Josh Sherman | Livabl