MARKET UPDATE- DECEMBER 2018
Home Sales continue to decline, with 2018 home sales being the lowest since 2000.
The Greater Vancouver Real Estate Board recorded a total of 24,619 sales on the MLS in 2018, a significant decrease of 31.6 per cent from 2017 with 35,993 total sales among the detached, attached and apartment properties.
Last year’s sales also mark 25 per cent points below the regions 10-year sales average.
According to the REBGV president Phil Moore, rising interest rates, changes to mortgage requirements and high homes prices were contributors to the changing market in Metro Vancouver that has transitioned away from the seller’s market conditions.
The MLS recorded 53,614 home listings in 2018 a decrease of 1.9 per cent when compared to 2017 with 54,655 listings and a 6.9 per cent decrease to 2016.
Moore further states that it is important to watch the supply of homes for 2019 as many pre-sale buildings will be completing this year.
The composite benchmark price for 2018 is $1,032,400 a 2.7 per cent decrease compared to December 2017.
The benchmark price of detached homes declined further since June by 7.3 per cent and declined by a total of 7.8 per cent over the past 12 months.
The benchmark price for townhomes, however, increased since December 2017 by 1.3 percent, thus decreased by 5.3 per cent since June.
Apartment homes also increased by 0.6 per cent over the past 12 months and have decreased since June 2017 by 6.4 per cent.
Moore blames the supply of homes that started to accumulate in the spring and put downward pressure on prices across all home types throughout the second half of the year.
Looking at December, in particular, the MLS reports total sales of 1,072, a 46.6 per cent decrease compared to December 2017 and a 33.3 per cent decline from November 2018 with 1,608 homes sold.
Total homes listed were recorded at 1,407 across all property types, representing a 25.6 per cent decrease to December 2017 and 59.4 per cent decrease to November 2018 when 3,461 homes were listed.
The total number of homes currently listed for sale is recorded at 10,275 which represents a 47.7 per cent increase compared to December 2017 with 6,958 listings and a 16.5 per cent decrease in comparison to November 2018.
The sales-to-active ratio for all property types in December 2018 was 10.4 per cent, specific to each property type, the MLS recorded a 7.1 per cent ratio for detached homes, 12 per cent for townhomes and 14.2 per cent for apartments.
According to analysts, this shows that detached homes and townhomes are currently operating in a Buyer’s market as the downward pressure on home prices is at or has dipped below the 12 per cent mark. Apartments are however still in a balanced market.
Sales of detached homes in December 2018 have been on the decline with 348 recorded sales, representing a 43.6 per cent decrease compared to December 2017, with 617 homes sold. The benchmark price for a detached home is $1,479,000, a 7.8 per cent decrease from December 2017.
Apartment homes also recorded a decrease in total sales, with 535 sold homes in December 2018 and 1,028 recorded sales in December 2017, a 34 per cent decrease. However, prices for apartment homes slightly increased by 0,6 per cent from December 2017 to December 2018, with a new benchmark price of $664,100
Lastly, attached home sales reached 189, a strong decrease of almost 50 per cent compared to December 2017 with 371 sales. Here, too, the benchmark price slightly increased when compared to the previous year, by 1.3 per cent, however, records a 1.1 per cent decrease compared to November 2018. The new benchmark price for attached homes is $809,700.