The condo and townhouse market has slowed from its previous pace from February through to mid-June. The foreign buyer’s tax as well as the new mortgage rules further slowed an already correcting market for condos and townhouses in Olympic Village as well as all areas of Vancouver. The correction has had a minimal effect on sale prices to date yet the upper end luxury condo market in the 3 million plus range has seen the biggest change with the new foreign buyers tax. Some buyers have decided to see how the market plays out over the next few months. This wait and see attitude is reflected in the reduced number of sales in October in Olympic Village and right across Vancouver.
The volume of sales has dropped off but the market is still very good in specific price ranges (see charts below). In fact, the sales to listing ratios for the month of October in Olympic Village remains in a balanced or seller’s market in a majority of the price ranges. The next four months will determine the impact of the foreign buyers tax and new mortgage regulations. I will provide monthly updates and if you would like more detailed information please call or email me.
Below is a chart that shows the number of sales per month for this year in False Creek Olympic Village. The data is specific to the area that falls under the name False Creek Olympic Village which is from Cambie Street East to Main Street and from 2nd Avenue north to Athletes Way. Olympic Village does have its’ own designated quadrant which is from Columbia Street east to Ontario Street and from West 1st Avenue to Athletes Way. However, it is important to encompass the immediate surrounding development to get enough data to properly assess the current market conditions.
Monthly sales volume for False Creek Olympic Village
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct |
| 18 | 29 | 43 | 29 | 36 | 36 | 25 | 21 | 16 | 13 |
The number of sales has steadily dropped off since mid-June but the market is still very healthy. If we look at the current absorption* rate for the month of October it is at 24% which is a seller’s market.
*Absorption rate is calculated by taking the number of homes that sold in a month and divide it by the total number of homes for sale at the end of the month.
- Buyer’s Market: 0-14%
- Balanced Market: 15%-20%
- Seller’s Market: 21%+
Olympic Village False Creek sales data for the month October 2016
- Number of Listings: 66
- Number of Sales: 13
- Absorption Rate: 24 percent
Olympic Village False Creek Sales Activity by Price Range
| Price Range | Listings | Sales | Absorption Rate |
| 0 – $500,000 | 6 | 1 | 16% |
| $500,001-$700,000 | 23 | 8 | 34% |
| $700,001-$1,000,000 | 22 | 1 | 4% |
| $1000,000-$1,500,000 | 8 | 2 | 25% |
| $1,500,001-$2,500,000 | 3 | 0 | 0% |
| $2,500,001-$5,000,000 | 3 | 1 | 33% |
| $5,000,000 plus | 1 | 0 | 0% |
| Total | 66 | 13 | 24% |
The most active price range for condos was between $500,000 and $700,000 which were all 1 bedroom, 1 bathroom condos ranging in size from 575 square feet to 725 square feet. There continues to be new developments in False Creek Olympic Village and many of the pre sales are not reported to the Real Estate Board of Greater Vancouver MLS system. If you were to take into account the additional pre sales for the month of October this would give further sales volume to the area which is already at a 24% absorption rate which is a seller’s market.
There are many buyers on the fence at the present time waiting to see how the new foreign buyer’s tax and new mortgage regulations will play out in the coming months. The next three to four months will be interesting as Vancouver real estate stabilizes from the early 2016 fury.
If you would like any further information on a specific type, location or price range of a property, please call or email me as I would be glad to answer any questions.
Written by Don Urquhart Vancouver real estate agent since 1987 – Olympic Village Specialist