-- Colliers International’s residential real estate report indicates that second quarter market performance pushed sales volumes to 5,117 new multifamily homes at the halfway point of 2013
September 12, 2013 – Colliers’ report on new multifamily home sales in Metropolitan Vancouver states that during the second quarter of 2013, 2,913 new multifamily home sales were recorded. This figure represents a 43 percent increase over the previous quarter in 2013, but a 17 percent reduction from the same quarter in 2012. The significant year over year performance gap reported last quarter has been reduced from 45 percent to 29 percent, and is thought to be a positive indicator of a more stable market this fall.
“While the quarter was not as active as last year, sales in the second quarter, combined with early reports on third quarter performance and recent reports on the general state of the resale market, signal a more stable market this fall,” commented Scott Brown, Senior Vice President, Colliers International Residential and Commercial Marketing Services. “The sales volume achieved is a strong indicator of the sustained end user demand that exists in our market and this type of demand is less volatile than pure investment demand. With that being said, we may need to reset our expectations of the market overall if the investor demand remains highly selective.”
Colliers expected a somewhat stronger performance and a half year total closer to the half year figure in 2012. “While we anticipated another 200 to 400 sales, 2,900+ sales is a decent quarter when compared to a longer term horizon than 2012. With that figure and expected market stability, we project a year-end total of 8,500 to 9,000 homes sales – a number well beyond 2008 and a better projection than 2009 and 2010,” explained Brown.
As for supply, released and unsold inventory increased by 39 percent. Despite the significant increase in released and unsold inventory, standing inventory (completed and unsold units) rose by just 10 percent over the past year. “We do project another increase in inventories during the third quarter of 2013, but we are expecting to see declines in the fourth quarter of 2013 and/or the first quarter of 2014,” added Brown.
A full copy of the report entitled MarketShare is available on request.