Housing supply up, demand down across Metro Vancouver

July’s residential housing sales in Metro Vancouver* reached their lowest levels for that month since the year 2000.


The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,070 in July 2018, a 30.1 per cent decrease from the 2,960 sales recorded in July 2017, and a decrease of 14.6 per cent compared to June 2018 when 2,425 homes sold.


Last month’s sales were 29.3 per cent below the 10-year July sales average.

“With fewer buyers active in today’s market, we’re seeing less upward pressure on home prices across the region,” Phil Moore, REBGV president said. “This is most pronounced in the detached home market, but demand in the townhome and apartment markets is also relenting from the more frenetic pace experienced over the last few years.”


There were 4,770 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in July 2018. This represents a 9.2 per cent decrease compared to the 5,256 homes listed in July 2017 and a 9.6 per cent decrease compared to June 2018 when 5,279 homes were listed.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 12,137, a 32 per cent increase compared to July 2017 (9,194) and a 1.6 per cent increase compared to June 2018 (11,947).


“Summer is traditionally a quieter time of year in real estate. This is particularly true this year,” Moore said. “With increased mortgage rates and stricter lending requirements, buyers and sellers are opting to take a wait-and-see approach for the time being.”

For all property types, the sales-to-active listings ratio for July 2018 is 17.1 per cent. By property type, the ratio is 9.9 per cent for detached homes, 20.2 per cent for townhomes, and 27.3 per cent for condominiums.


Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.


The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,087,500. This represents a 6.7 per cent increase over July 2017 and a 0.6 per cent decrease compared to June 2018.


Sales of detached properties in July 2018 reached 637, a decrease of 32.9 per cent from the 949 detached sales recorded in July 2017. The benchmark price for detached properties is $1,588,400. This represents a 1.5 per cent decrease from July 2017 and a 0.6 per cent decrease compared to June 2018.


Sales of apartment properties reached 1,079 in July 2018, a decrease of 26.5 per cent compared to the 1,468 sales in July 2017. The benchmark price of an apartment property is $700,500. This represents a 13.6 per cent increase from July 2017 and a 0.5 per cent decrease compared to June 2018.


Attached property sales in July 2018 totalled 354, a decrease of 34.8 per cent compared to the 543 sales in July 2017. The benchmark price of an attached unit is $856,000. This represents a 12.1 per cent increase from July 2017 and a 0.4 per cent decrease compared to June 2018.


Source: Real Estate Board of Greater Vancouver

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North Van home sales continue to make gains, as we’ve become used to. However, there are some huge differences between the different market segments.


Detached- As we’ve seen since the mid-point of 2016, the sales of detached homes has settled down drastically from the previous couple of years. That being said, the detached market did push up just onto the sellers’ side of the market in October, meaning that more than 20% of homes listed for sale, were selling, 22.1% to be precise. This trend makes a lot of sense, when you consider the increase in the benchmark price for townhomes has continued to push upwards. However, the benchmark price for a detached home in North Van has slipped from $1.713 million to just $1.7 million from last month, but, is still up from $1.665m a year ago. Inventory of available homes was 367 listings and 81 sales, at an average of 26 days on market.


Townhomes- This market has continued to outpace historic sales, and has been in a very strong sellers’ market with 71.2% of homes listed, selling within the month. The benchmark price has jumped almost 15% year over year from just $849,900 last year, to $977,000 now. If you’re in a townhouse and looking to make the move to a detached home, now would be a great time as the gap in benchmark pricing has fallen by 26% from last year. Inventory of available homes was 52 listings and 37 sales, at an average of 26 days on market.


Condos- The condo market is the fastest paced segment again this month with 75% of listed homes selling. Not only that, multiple offers are also pretty common still with the average selling price 101% of sale price, indicating many are selling over asking price. This would be a great time for home owners looking to move up to a townhouse or detached home, as the condos are selling fast, over asking price, helping to narrow the gap in pricing on the move up. Inventory of available homes was 167 listings and 125 sales, at an average of 18 days on market.


To recap, the current market holds some great opportunities to upsize in any way. I believe you can expect to greater pressure on the low end of the markets, especially condos and townhomes, however, I do expect the low end of the detached market is also likely to receive increased activity.


If you would like some greater insight into your personal situation and how you could be impacted, please call now! 604-818-9909

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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.