Urban Development Institute has released its British Columbia State of the Market for Q1-2023, produced with exclusive data from Zonda Urban.

All eyes remain on the west coast, waiting to reveal if Canada’s most desirable real estate market is on the rebound. The news is mostly positive. Despite earlier forecasts of a gloomy market, Metro Vancouver experienced a six per cent increase during the first quarter of this year compared to Q4-2022. A total of 2,143 new homes were added to the area.

BC residents are riding a small but steady wave of optimism, driven by improved rental conditions and the possibility of future rate cuts. It’s worth noting that the forecast remains cloudy on rate hikes in July. The current rate is at a 22-year-high of 4.75%, its last raise in early June.

Outer Metro Contributing to New Home Starts

The Outer Metro accounted for 44% of all new home starts in Metro Vancouver. Building began on 6,670 new homes in Q1-2023, with a slight drop of 2.9% — or 197 units — from the previous quarter.

New home starts were broken down into three types : Townhomes, apartments, and single-family. There were 558 townhomes, 5,543 apartments, and 569 single-family new homes starting in the first quarter.

Active Sales of Concrete Condos Holding Steady

At the end of the first quarter, 161 new concrete condominium projects were actively selling across Metro Vancouver. That’s only one less compared to last quarter and one less year-over-year.

The inner metro region accounted for most of the projects, with 54% (87 condos) actively selling. Within the City of Vancouver, 36% (58 projects) were active, while the Outer Metro had 16 products or 10%.

1,288 concrete condos were sold in the first quarter, an increase of 54% from Q4-2022, but still down 69% year-over-year.

Townhomes Up Nearly 30% Since Q4-2022

320 townhome sales were recorded in the first quarter, a 29% increase from Q4-2022.

The Outer Metro took up 60% of sales in Metro Vancouver, while the Inner Metro accounted for 31%. 9% of the sales took place in the City of Vancouver.

1,000 new townhomes were released and unsold at the end of the quarter, marking an 8% decrease from the fourth quarter of 2022. The Outer and Inner Metros accounted for the majority of inventory, with 41% and 39% respectively. Meanwhile, the City of Vancouver represented 20%.

Slowed But Not Stalled : Metro Vancouver New Home Growth Up in First Quarter by Erin Nicks | Livabl