The second edition of our complimentary report on the multifamily residential real estate market in Metro Vancouver for 2018, The Fifth Dimension, has been released. The mid-year edition of this report furthers our efforts producing and sharing a succinct summary of market activity and commentary. As in years past, it is also the installment in which we share our first prognostications through to year-end and into 2019 and raise relevant issues for consideration.
Despite early quarter indicators supporting another 4,000+ units sold, a deceleration in sales activity in more central markets such as Downtown Vancouver led to a shortfall and sale mark of 3,254 new multifamily homes sold. This is the first quarter in nearly two years not to exceed the 4,000+ new units sold, our take on a peak performance market indicator. The market climate is shifting to be sure, but the sky is not falling. We are transitioning from a “supercycle” into a totally addressable, more normal market.
Some may dramatize this for effect using words like “plummet” or “crash”. Is this really the case? Or have costs and a lack of supply in contrast simply driven prices to ceilings that are causing more moderate demand with a number of exceptions including the Fraser Valley market for Condominiums and entry-level Townhomes. In this issue, we also highlight significant increases in hidden and not so hidden development and construction costs and surmise that increased costs will not enable major price adjustments for the foreseeable future.
Our aim is to provide a comprehensive, concise, informative and thought-provoking summary regarding new home sales, the majority of which are not recorded in MLS.