The month of June 2023 saw the largest release of pre-sale home inventory in Metro Vancouver in over a year.

Newly compiled data by MLA Canada shows over 1,800 units were released in June, following heightened marketing activity by developers in mid-April in May — possibly in response to forecasted increased demand from the Bank of Canada’s earlier months-long pause in hiking the policy interest rate.

A total of 16 project launches were recorded over the course of the month across the Real Estate Board of Greater Vancouver and Fraser Valley Real Estate Board jurisdictions.

This represents nearly a three-fold, month-over-month increase from the 646 pre-sale units released in May from within seven project launches.

Although there was a substantial increase in unit releases in June, 35% of these homes were sold in the same month.

For example, according to MLA Canada, over 100 units were sold within two weeks of launch at Wesgroup Properties’ future 30-storey Harlin tower in the River District of southeast Vancouver.

“While the market still faces headwinds, positive market conditions and the robust buyer response have instilled confidence in developers to move forward with their programs and contribute to ever-growing need for supply. With demand continuing to strengthen and property values appreciating, the market is expected to remain favourable in the Fall,” reads the market update.

“While the recent increase in interest rates adds greater uncertainty in the market over the short-term, the decision to raise rates now, rather than in September, is likely the better of the two options for the industry. By acting promptly rather than waiting until September, the Bank of Canada ensures that the market has time to adjust to the higher rates before the start of the Fall market.”

Looking ahead, a total of 625 pre-sale unit releases are expected for July 2023, including 482 concrete units, 104 wood-frame units, and 40 townhomes. This includes Shape Properties’ launch of its future Tower 3 at the City of Lougheed — the redevelopment of Burnaby’s Lougheed Town Centre mall.

Some projects, particularly those by smaller developers, are challenged by the inflationary environment on construction materials and labour. A recent report by RBC Economics indicates overall construction costs nationwide have soared by 51% since the start of the pandemic.

Strong Home Pre-Sales Activity in Metro Vancouver at The Start of Summer by Kenneth Chan | Daily Hive