Unsold condo inventory rising
According to this article in todays Vancouver Sun condo inventories have risen sharply over the last six months.
Greater Vancouver real estate markets saw a 55 per cent increase in inventory of unsold presale condominium units over the last six months, which may trigger a slowdown in future development, PricewaterhouseCoopers reported today.
The rising inventory is likely a result of fewer buyers being able to afford Vancouver’s high-flying prices, Craig Hennigar, vice-president of PricewaterhouseCoopers Real Estate (PsC), said.
Hmm rising inventory, fewer buyers able to afford asking prices. But prices will keep going up right?
update: Here’s the same story in Fridays issue of the Province.
January 29th, 2007 at 1:18 pm
"unsold presale condominium units""unsold units in pre-sale inventory"Aren't all presale units unsold by definition? If not, what is a "sold presale condominium unit"?
January 26th, 2007 at 12:44 pm
Do these Pre-Sale Units still need to be built?? Or are they completed?
January 26th, 2007 at 11:15 am
Here's an article in today's province about the same story."Consumers have to have a higher income to be able to afford the average product and we very quickly have a diminishing pool of potential buyers."The supply of pre-sale condo units in new developments jumped by more than 55 per cent from 2,780 units in January, 2006 to 4,350 units at the end of December 2006, Hennigar said. In the high-rise category alone, unsold units in pre-sale inventory jumped almost 75 per cent between December 2005 and December 2006.
January 25th, 2007 at 7:38 pm
"Ontario’s once red-hot home construction market will experience its second straight cool-down year in 2007, the president of the Ontario Home Builders’ Association told an industry conference last week." LINK
January 25th, 2007 at 7:30 pm
"“In the highest growth markets, there were a lot of folks who panicked when they saw prices going up by 8, 10 or 12% a year and rushed to buy in,†says Kermit Baker, a senior research fellow at Harvard University’s Joint Center for Housing Studies. “Once prices started to fall [in high growth markets], speculators got an itchy trigger finger because prices went up so high that it was very difficult to buy; affordability had gotten out of hand and people worried that if they waited six to eight months to sell, they’d be left holding the bag. The result is a short-term adjustment.â€Steadier, more tempered growth translates into a stable real estate conditions because affordability remains in line with local economic conditions." Full Article
January 25th, 2007 at 7:19 pm
Things like wages and other fundamentals don't matter when you are admiring your new granite counter tops.
January 25th, 2007 at 7:16 pm
That's what I would want to believe if I "invested" in a Condo.