MARKET UPDATE- March 2019
Prospective home buyers remain on the sidelines in March
Total home sales in the residential sector for March 2019 totalled 1,727, representing a 31.4% decrease from sales recorded in March 2018 with 2,517 homes sold. Last month’s sales were also 46.3 % below the 10-year March sales average, actually marking this the lowest total for the month since 1986.
Ashley Smith, REBGV president states, “housing demand today isn’t aligning with our growing economy and low unemployment rates. What policymakers are failing to recognize is that demand-side measures don’t eliminate demand, they sideline potential home buyers in the short term.”
MLS or Multiple Listing Service recorded 4,949 newly listed homes comprising of the detached, apartment, and attached residences. This reflects an increase of 27.2% compared to homes listed in February 2019 and an 11.2% increase in comparison to the 4,450 newly listed homes in March 2018.
MLS current listings are 12,77 or 52.4% higher than March 2018, whereby listings totalled 8,380. In comparison to February 2019 MLS recorded an increase of 10.2%, with 11,590 homes listed the previous month.
The sales to activity ratio in March 2019 was 9.4% for detached, 15.9% for attached (townhouse) and 17.2% for condos. Overall, across all property types, the sales to activity listing ratio were 13.5%.
March 2019 Sales-to-active listings ratio
The key is to price homes for the market. Well priced homes attract more buyers and open houses have experienced more traffic.
The general rule of thumb for analysts is home prices adjust downward when the sales to activity ratio drop below 12% for a sustained time. Home prices increase when this ratio exceeds 20% for a sustained period of time.
Metro Vancouver benchmark price for all residential homes currently sits at $1,011,200 as indicated by the MLS Home Price Index composite. That is a 7.7% decrease over March of 2018 and a 0.5% drop compared to February 2019.
March 2019 saw detached housing decrease 26.7% (529) from March 2018 (722). Currently, the detached home benchmark sits at $1,437,100 a 10.5% decrease from March 2018 stats and 0.4% drop compared to February 2019.
The benchmark price for apartments is currently $656,900. This represents a 5.9% decrease from March 2018 and a 0.5% decrease from February 2019.
Lastly, Townhomes or attached homes, sales totals for March were 325 showing a 27.1% decrease over March 2018 where sMLS recorded 446 sales. The attached home benchmark price currently sits at $783,600 a 6% decrease in comparison to March 2018 and a 0.7% decrease over last month.
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