I get asked all the time about our Real estate market and what’s going on. Everyone wants to know where prices are headed. Everything I tell you here is just my opinion being on the front lines and seeing what’s happening at open houses and with home sales in our Vancouver markets.
We believe we are getting close to the bottom of the market for prices. I say that for the following reasons.
Interest rates are creeping lower. This is a complete reversal from where everyone was predicting they were headed this time last year.
Open Houses for certain types of properties are seeing increased traffic. Where four months ago you might have 3 to 4 groups pass through your open house we are now seeing number back to 15 to 25 groups.
Multiple Offers are back on certain types of well priced properties. In the past three weeks I have been involved in four multiple offers on different properties. One of those homes sold $ 100,000 OVER asking price. Buyers are recognizing some good deals out there and are now seizing on the opportunities that exist
Tough to predict whether we will see a pick-up in sales this Fall or not. We have a federal election in October which tends to keep markets cool during periods of political change and uncertainty. I do strongly predict that late Winter / Spring 2020 we will see a pick-up in sales activity and a stabilization of home prices in the lower mainland.
I am sure you have heard the saying, “ be greedy when others are fearful and be fearful when others are greedy.” We think this is a good time for those that have the resources to look for opportunities. We like single family homes and small multi-family properties. I would be buying close to transit lines, busy streets for possible re zoning. I prefer markets that have in the past and present are less reliant on foreign buyers. I would be careful jumping into the pricier upper end of the market and focus more on houses priced below $ 2 million.
If any of you have questions and or would like more information on our ever changing Real Estate market we are always available to be of assistance.
Have a great summer!
The June 2019 Market stats are out and available for download. You get the following graphs and charts for both Vancouver East and Vancouver West.
With home buyer demand below long-term historical averages in June, the supply of homes for sale continued to accumulate in Metro Vancouver.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,077 in June 2019, a 14.4 per cent decrease from the 2,425 sales recorded in June 2018 and a 21.3 per cent decrease from the 2,638 homes sold in May 2019.
Last month’s sales were 34.7 per cent below the 10-year June sales average. This is the lowest total for the month since 2000.
“We’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver,” said Ashley Smith, REBGV president. “Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach.”
On the supply side, there were 4,751 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in June 2019. This represents a 10 per cent decrease compared to the 5,279 homes listed in June 2018 and an 18.9 per cent decrease compared to May 2019 when 5,861 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 14,968, a 25.3 per cent increase compared to June 2018 (11,947) and a 1.9 per cent increase compared to May 2019 (14,685).
“Home buyers haven’t had this much selection to choose from in five years,” Smith said. “For sellers to be successful in today’s market, it’s important to work with your local REALTOR® to make sure you’re pricing your home for these conditions.”
For all property types, the sales-to-active listings ratio for June 2019 is 13.9 per cent. By property type, the ratio is 11.4 per cent for detached homes, 15.8 per cent for townhomes, and 15.7 per cent for apartments.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12 per cent 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 $998,700. This represents a 9.6 per cent decrease over June 2018 and a 0.8 per cent decrease compared to May 2019.
This is the first time the composite benchmark has been below $1 million since May 2017.
Sales of detached homes in June 2019 reached 746, a 2.6 per cent decrease from the 766 detached sales recorded in June 2018. The benchmark price for detached properties is $1,423,500. This represents a 10.9 per cent decrease from June 2018 and a 0.1 per cent increase compared to May 2019.
Sales of apartment homes reached 941 in June 2019, a 24.1 per cent decrease compared to the 1,240 sales in June 2018. The benchmark price of an apartment property is $654,700. This represents an 8.9 per cent decrease from June 2018 and a 1.4 per cent decrease compared to May 2019.
Attached home sales in June 2019 totalled 390, a 6.9 per cent decrease compared to the 419 sales in June 2018. The benchmark price of an attached unit is $774,700. This represents an 8.6 per cent decrease from June 2018 and a 0.6 per cent decrease compared to May 2019.
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.