There is 'low evidence of overbuilding' housing in Metro Vancouver: report

A new home under construction in Vancouver. (Shutterstock)

A new analysis of the stability of the housing market in Metro Vancouver has found that there is currently “low evidence” of overbuilding and overheating.

“In the single-detached segment, unsold inventory levels have trended up slightly over the past year to sit at 1,080 homes at the end of February 2019. Overall, the completed and unsold stock is low relative to the local population in the Vancouver census metropolitan area, while the purpose-built rental apartment vacancy rate remains well below the threshold for the detection of overbuilding.”

Metro Vancouver – Housing Market Assessment, Q2 2019. (Canada Mortgage and Housing Corporation)

Moreover, CMHC says the overall sales-to-new-listings ratio was below the 75% threshold that defines overheating, with the market significantly slowing down over the past four quarter, resulting in “balanced or buyers’ market conditions” — especially for apartments and townhouses.

“Resale market conditions softened throughout 2018 and into 2019 as home buyers adjusted their expectations in light of evolving financing conditions and housing policies from all levels of government; moreover, the moderation of market conditions has been broad-based and extends across all price ranges,” states the report.

“While lower-priced segments continue to see firmer market conditions, a much greater availability of homes is observed at all price points compared with the first half of 2018.”

CMHC also found “moderate evidence” for overvaluation, as imbalances in price levels have narrowed compared to previous quarters.

Metro Vancouver – Housing Market Assessment, Q2 2019. (Canada Mortgage and Housing Corporation)

There is 'low evidence of overbuilding' housing in Metro Vancouver: report

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