[GMD]

The number of new units coming on the market hasn't been particularly high in recent years (by historical Vancouver standards), but the number of units under construction right now is very high. So as all those units under construction complete in the next year or two, we should get a good test of the impact of supply on prices.

Supply in the single family dwelling market doesn't really move much as price increases, because it doesn't matter how much you can sell it for, there's (effectively) nowhere to build new ones in metro Vancouver. But this is not true for Condos and the Condo price surge of the last couple of years has been met with a huge supply response - its just that those units are mostly still being built.

At some level, it seems obvious that supply will have an impact on prices. Imagine if Shape finished all 30 planned condo towers at Lougheed Mall at once - they'd have to offer brutally low prices to move all those units at the same time. But there's lots of moving parts in the broader market so it is harder to see the impact of supply that obviously most of the time, but the next year or two should be a good test.