Availability of New Townhouses in Vancouver Hits Record Low as Demand Climbs
In the first three months of 2017, Metro Vancouver’s inventory of newly built, family-friendly townhouses hit a record low, according to the Urban Development Institute
No new townhouses for sale. That’s what the UDI’s quarterly state-of-the-market report concluded, even though new home construction is once again on the rise.
According to UDI CEO Anne McMullin, in the second quarter of 2013, there were closer to 50 new, unsold townhouses in Vancouver and up to 725 across Metro Vancouver. However, standing inventory has been close to zero over the last year.
Although townhouses are relatively affordable and family-friendly, there are more demands on developers—for example, more pre-sales before building starts, and many single family neighbourhoods are restrictive when it comes to the construction of more duplexes, row houses and laneway homes. That may be a part of the reason there were just 16 townhouses across Metro Vancouver for sale during the first months of 2017.
A Great Time for Selling a Townhouse
“The trade off is that there is a lot of competition and higher prices for the townhouses that are available,” says, Ariane Benjamin, realtor at vancouvertownhouse.ca. “This is a great time for selling a townhouse.”
While home sales in the overall market have slowed over the last year, competition for townhouses and other more affordable, family-friendly homes is still going strong.
Inventory for New Townhouses in Vancouver Still Dropping
Another factor is that the inventory of homes for sale has been dropping. According to Canada Mortgage and Housing analyst Braden Batch, homes for resale typically makes up 80 percent of the inventory available for sale in a given market, but in Metro Vancouver the resale supply “has been absolutely decimated” within the last year.
“Vancouver is a funny market,” says Ariane. “At this point there are more million-dollar homes for sale than those under $750,000—and that’s what’s in demand.”
For anyone buying or selling a townhouse, the team at vancouvertownhouse.ca focuses exclusively on townhouses in Vancouver, North Vancouver, Burnaby, and New Westminster. For a free consultation, call 604-779-1500 and ask for Ariane Benjamin.