Reduced home sale and listing activity are changing market dynamics in communities across Metro Vancouver.
Residential property sales in the region totalled 2,233 in October 2016, a 38.8% decrease from the 3,646 sales recorded in October 2015 and a 0.9% decrease compared to September 2016 when 2,253 homes sold. Last month’s sales were 15% below the 10-year October sales average.
“Changing market conditions compounded by a series of government interventions this year have put home buyers and sellers in a holding pattern,” Dan Morrison, Real Estate Board of Greater Vancouver (REBGV) president said. “Potential buyers and sellers are taking a wait-and-see approach to try and better understand what these changes mean for them.”
New listings for detached, attached and apartment properties in Metro Vancouver totalled 3,981 in October 2016. This represents a decrease of 3.5% compared to the 4,126 units listed in October 2015 and a 17% decrease compared to September 2016 when 4,799 properties were listed.
Last month’s new listing count was 9.5% below the region’s 10-year new listing average for the month.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,143, a 4.5% decrease compared to October 2015 (9,569) and a 2.3% decrease compared to September 2016 (9,354).
The sales-to-active listings ratio for October 2016 is 24.4%. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
“While sales are down across the different property types, it’s the detached market that’s seen the largest reduction in home buyer demand in recent months,” Morrison said. “It’s important to work with your local REALTOR® to help you navigate today’s changing trends.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $919,300. This represents a 24.8% increase compared to October 2015 and a 0.8% decline compared to September 2016.
Sales of detached properties in October 2016 reached 652, a decrease of 54.6% from the 1,437 detached sales recorded in October 2015. The benchmark price for detached properties is $1,545,800. This represents a 28.9% increase compared to October 2015 and a 1.4% decrease compared to September 2016.
Sales of apartment properties reached 1,178 in October 2016, a decrease of 23.7% compared to the 1,543 sales in October 2015.The benchmark price of an apartment property is $512,300. This represents a 20.5% increase compared to October 2015 and a 0.3% increase compared to September 2016.
Attached property sales in October 2016 totalled 403, a decrease of 39.5% compared to the 666 sales in October 2015. The benchmark price of an attached unit is $669,200. This represents a 25.7% increase compared to October 2015 and a 1.1% decrease compared to September 2016.
Contact Agnieszka Stryjecka for more detailed information on Vancouver Real Estate.
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