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More supply and less demand seen across Metro Vancouver housing market

I was surprised to see that September had fewer sales than August – it is usually a rebound month from the typical summer slowdown. With the substantial decrease in sales volume comes a slight drop in prices in all categories of properties. I don’t see a big jump in sales activity on the horizon, and the question is – will this “softening” of prices continue or turn into a full-on crash? Part of the answer depends on any future interference from the different levels of government, and part is on the shoulders of sellers and if they decide to bail out or hold on. Any questions please let me know, I’m always here to help you achieve your real estate goals.
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Home buyer demand stays below historical averages in August

August activity continued to be very slow, with fewer sales than in July and price drops in all main categories of homes. I do expect the volume sales and new listings to pick up in September, but Sellers shouldn’t be trying to set new price points. Buyers will still have to compete for the best properties but must continue to exercise self-control and restraint when it comes to offer prices. I’m starting to see more listing agents offer higher commissions to attract buyer agents to their properties, which is fair game. Buyers need to remain in control of their decisions and make sure they have all the information they need to make the right choices.

Click here for the REBGV report.

Housing supply up, demand down across Metro Vancouver

July was a very quiet month for sales activity in the Lower Mainland. Sales were down from June but new listings were also down. Both Buyers and Sellers are sitting back a bit to see where things are going. If you are choosing to sell in this market your home will need to show it’s best. It’s time to fix all the little things and polish everything. Expect offers to reflect the need for maintenance & repairs – and the amount a buyer will try to reduce your price by will outweigh the real cost of these items. Sales ought to pick up in September – they historically have. But the external pressures the government and banks have implemented to control the market have not been seen before so we’re really venturing into unknown territory. Average sales prices in all categories of homes were down in July for the first time in a long while. Is this due to the summer “dog days”, or is it the start of prices sliding downhill? Please contact me if you have any questions or if you want to talk about selling or buying in this market.

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Home seller supply grows as demand declines

With home sale activity dipping below long-term historical averages, the supply of homes for sale in Metro Vancouver* reached a three-year high in June.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,425 in June 2018, a 37.7 per cent decline from the 3,893 sales recorded in June 2017, and a 14.4 per cent decrease compared to May 2018 when 2,833 homes sold.

Last month’s sales were 28.7 per cent below the 10-year June sales average.

“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” Phil Moore, REBGV president said. “Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”

There were 5,279 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in June 2018. This represents a 7.7 per cent decrease compared to the 5,721 homes listed in June 2017 and a 17.2 per cent decrease compared to May 2018 when 6,375 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,947, a 40.3 per cent increase compared to June 2017 (8,515) and a 5.8 per cent increase compared to May 2018 (11,292). This is the highest this total has been since June 2015.

“With reduced demand, detached homes are entering a buyers’ market and price growth in our townhome and apartment markets is showing signs of decelerating.”

For all property types, the sales-to-active listings ratio for June 2018 is 20.3 per cent. By property type, the ratio is 11.7 per cent for detached homes, 24.9 per cent for townhomes, and 33.4 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 $1,093,600. This represents a 9.5 per cent increase over June 2017 and is virtually unchanged from May 2018.

Sales of detached homes in June 2018 reached 766, a 42 per cent decrease from the 1,320 detached sales recorded in June 2017. The benchmark price for a detached home is $1,598,200. This represents a 0.7 per cent increase from June 2017 and a 0.6 per cent decrease compared to May 2018.

Sales of apartment homes reached 1,240 in June 2018, a 34.9 per cent decrease compared to the 1,905 sales in June 2017. The benchmark price for an apartment is $704,200. This represents a 17.2 per cent increase from June 2017 and a 0.4 per cent increase compared to May 2018.

Attached home sales in June 2018 totalled 419, a 37.3 per cent decrease compared to the 668 sales in June 2017. The benchmark price of an attached home is $859,800. This represents a 15.3 per cent increase from June 2017 and is virtually unchanged from May 2018.

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Just sold in Richmond!

Sometimes things look like they happen in a flash but really the end result is the reward for years of planning and preparing.

Congratulations to my clients on the sale of their condo! They contacted me about moving in early 2106 – and the process began. Slowly. Raising 2 young kids and working full-time is a very difficult task as it is – never-mind looking for their next home, getting finances sorted, meeting with their lender, prepping their home to look it’s best, etc. How do you fit it all in? Well over a couple of years, and with one final push, they did – and it paid off. After 2.5 years of planning and working together, and one intense weekend of showings, we sold for substantially over their asking price!

The Metro Vancouver* housing market saw fewer home buyers and more home sellers in April.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,579 in April 2018, a 27.4 per cent decrease from the 3,553 sales recorded in April 2017, and a 2.5 per cent increase compared to March 2018 when 2,517 homes sold.

Last month’s sales were 22.5 per cent below the 10-year April sales average.

“Market conditions are changing. Home sales declined in our region last month to a 17-year April low and home sellers have become more active than we’ve seen in the past three years,” Phil Moore, REBGV president said. “The mortgage requirements that the federal government implemented this year have, among other factors, diminished home buyers’ purchasing power and they’re being felt on the buyer side today.”

There were 5,820 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2018. This represents an 18.6 per cent increase compared to the 4,907 homes listed in April 2017 and a 30.8 per cent increase compared to March 2018 when 4,450 homes were listed.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,822, a 25.7 per cent increase compared to April 2017 (7,813) and a 17.2 per cent increase compared to March 2018 (8,380).

“Home buyers have more breathing room this spring. They have more selection to choose from and less demand to compete against,” Moore said.

For all property types, the sales-to-active listings ratio for April 2018 is 26.3 per cent. By property type, the ratio is 14.1 per cent for detached homes, 36.1 per cent for townhomes, and 46.7 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 $1,092,000. This represents a 14.3 per cent increase over April 2017 and a 0.7 per cent increase compared to March 2018.

Sales of detached properties in April 2018 reached 807, a 33.4 per cent decrease from the 1,211 detached sales recorded in April 2017. The benchmark price for detached properties is $1,605,800. This represents a 5.1 per cent increase from April 2017 and a 0.2 per cent decrease compared to March 2018.

Sales of apartment properties reached 1,308 in April 2018, a 24 per cent decrease from the 1,722 sales in April 2017. The benchmark price of an apartment property is $701,000. This represents a 23.7 per cent increase from April 2017 and a 1.1 per cent increase compared to March 2018.

Attached property sales in April 2018 totalled 464, a 25.2 per cent decrease compared to the 620 sales in April 2017. The benchmark price of an attached unit is $854,200. This represents a 17.7 per cent increase from April 2017 and a 2.3 per cent increase compared to March 2018.

Click here to download the full stats package