MARKET UPDATE- NOVEMBER 2018
Property Sales continue to slow down across the Metro Vancouver Real Estate Market.
According to the Vancouver Real Estate Board, the total sale of homes in November remains below historical averages. With total sales of 1,608 the Vancouver Real Estate Board recorded a 42.5 per cent decrease from November 2017 as well as a further decrease in sales in comparison to October 2018 with a 18.2 per cent decline.
The housing market hasn’t seen a comparable decrease for the month of November since 2008.
Home buyers remain patient in pulling the trigger on the perfect home, allowing the number of available homes for sale to go back to typical historical level. This has resulted in prices coming down across all property types says Phil Moore, the REBGV president.
The MLS system recorded 3,461 newly listed homes in Metro Vancouver in November, which is a 15.8 per cent decrease compared to November 2017 when 4,109 were listed with the Multiple Listing Service. The number of homes listed in November has also decreased when compared to October 2018, with 4,873 homes being listed.
Currently, the total number of homes available for sale on the MLS system in Metro Vancouver is 12,307, recording a 40.7 per cent increase compared to November 2017 when only 8,747 homes were listed for sale and a 5.2 per cent decrease in comparison to October 2018.
The property sales-to-active ratio for detached homes is currently 8.9 per cent, 14.7 per cent for townhomes and 17.6 per cent for apartments. Therefore detached homes remain in a buyer’s market with townhomes now also entering into a buyer’s market, and apartments remaining in a balanced market. Overall the sales-to-active ratio for all property types is 13.1 per cent.
When the sales-to-active ratio dips below 12 per cent for a sustained period, downward pressure on homes occurs, while home prices climb when the ratio exceeds 20 per cent over several months.
According to Moore, home prices have been on the decline over the past 6 month depending on the type of property. Analysts will watch the first quarter of 2019 to see if demand picks up as its usually very active in the spring.
The current benchmark price for all property types in Metro Vancouver is $1,042,100 which is a 1.4 per cent decrease compared to November 2017 and a 1.9 per cent decrease to October 2018.
Detached home sales have further declined in comparison to the previous year, the Vancouver Real Estate Board records a 38.6 per cent decrease with 516 detached sales in November 2018 compared to 841 detached sales recorded in November 2017. The benchmark price is $1,500,100 documenting a 6.5% decrease from November 2017 and 1.6 per cent decrease compared to October 2018
Apartment sales are similar, recording an even higher decrease, 46.3 per cent, compared to the previous year, with 810 sales in November 2018 compared to 1,508 sales in November 2017. The benchmark price is currently $667,800, representing a 2.3 per cent increase compared to November 2017.
Meanwhile townhomes sales too record a decrease in sales, down to 282 sales in November 2018 compared to 446 sales in November 2017. The benchmark price for an attached home is $818,500.