[Harvey Specter]

New-home presales plummet in Lower Mainland

The rate at which presale condos and townhomes are being snapped up has plummeted across Greater Vancouver and the Fraser Valley – especially in downtown Vancouver, according to a July 18 report by a real estate marketing company.

MLA Advisory, the research arm of marketing firm MLA Canada, said in its mid-year report that the absorption rate of newly released presale units in June 2018 across the Lower Mainland was just 50 per cent, compared with 94 per cent in January this year. The monthly absorption rate is the proportion of units that are both released and sold within that month.



Overall, from January to June inclusive, 74 per cent of the 7,753 presale unit released in the Lower Mainland were sold. However, the pace of sales is slowing, with 79 per cent sales in 2018’s first quarter, and 69 per cent in Q2.

MLA said the more modest pace of sales was good news for homebuyers and the industry.

“The current pre-sale landscape is shifting from its once unsustainable, hyperactive growth to a balanced, more normal market,” said Suzana Goncalves, chief advisory officer and partner at MLA Canada. “This is good news for everyone to ensure more modest and realistic price growth, more choice for consumers and the need for higher quality product from the industry. The economic fundamentals including low interest rates, steady employment landscape, and continued demand to move to our sought-after city will allow for a steady shift into a balanced market.”

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And City of Vancouver is looking to allow for larger laneway homes...

An amendment to the laneway homes policy to permit larger, more livable homes. In addition, proposals will no longer to be reviewed by a board, but can be approved of by staff, like most other buildings.

https://council.vancouver.ca/2018071...2by-law-ZD.pdf