Over the last few weeks I have noticed a gain in inventory each week. Although this normally is a sign of a slowing market, in our case inventory has been so tight it has actually hurt the market rather than help. A little easing on inventory is a good thing. However we all should pay attention to this stat because there comes a point where inventory levels can reach critical mass and lead to falling prices.
I have mentioned numerous times in recent months that the strong seller’s market has been almost entirely built on a lack of supply rather than an abundance of demand. As supply levels increase and lending rates rise, supply is increasing at the same time demand is falling.
For urban condo owners in America’s Vancouver we very well may have peaked for our units in the city center. So peaking is not necessarily the precipice of doom but could simply mean that prices may soften a bit of the properties may sit a little longer before receiving offers. This is a normal cycle. But for those looking to capitalize on the highest possible price, now could very well be the time. One never knows how the future plays out, but the data shows trends towards a slightly more friendly market for buyers.
I was unable to catch the CCRA review of the Waterfront Block 21 Modera project but I will review the video feed as soon as the City releases and report on how the CCRA ‘ruled’ on its design.
Kirkland Tower had a pending unit return to active this past week. It looks like occupancy is delayed again until July and that may have been the last straw for the buyer, or perhaps the interest rate got too high and the buyer was priced out. Kirkland has had a little tougher time than other builders in getting this project to the finish line. It will be the crème de la crème when complete, but they better get it done soon, financing conditions are worsening and the stock market took a sniper shot to the head this month.
Over all things remain solid and secure in Downtown Vancouver’s urban market.