Greater Vacouver Housing Market Monthly Update
Housing Supply Up, Demand Down Across Metro Vancouver
August 03, 2018 - July's residential housing sales in Metro Vancouver* reached their lowest levels for that month since the year 2000.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,070 in July, 2018 a 30.1 per cent decrease from the 2,960 sales recorded in July 2017, and a 14.6 per cent decrease compared to June 2018 when 2,425 homes sold.
Last month's sales were 29.3 per cent below the 10-year July sales average.
"With few buyers active in today's market, we're seeing less upward pressure on home prices across the region" Phil Moore, REBGV president said. "This is most pronounced in the detached home market, but demand in the townhome and apartment markets is also relenting from the more frenetic pace experienced over the last few years."
There were 4,770 detached, attached and apartment properties newly listedfor sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in July 2018. This represents a 9.2 per cent decrease compared to the 5,256 homes listed in July 2017 and a 9.6 per cent decrease compared to June 2018 when 5,279 homes were listed.
The total number of homes currently listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver is 12,137, a 32 per cent increase compared to July 2017 (9,194) and a 1.6 per cent increase compared to June 2018 (11,947).
"Summer is typically a quieter time of year in real estate. This is particularly true this year", Moore said. "With increased mortgae rates and stricter lending requirements, buyers and sellers are opting to take a wait-and-see approach for the time being".
For all property types, the sales-to-active listings ratio for July 2018 is 17.1 per cent. By property type, the ratio is 9.9 per cent for detached homes, 20.92per cent for townhomes, and 27.3 per cent for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark 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 $1,087,500. This represents a 6.7 per cent increase over July 2017 and 0.6 per cent decrease compared to June 2018.
Sales of detached homes in July 2018 reached 637, a 32.9 per cent decrease from the 949 detached sales recorded in July 2017. The benchmark price for a detached home is $1,588,400. This represents a 1.5 per cent decrease from July 2017 and a 0.6 per cent decrease compared to June 2018.
Sales of apartment properties reached 1,079 in July 2018, a 26.85per cent decrease compared to the 1,468 sales in July 2017. The benchmark price of an apartment is $700,500. This represents a 13.6 per cent increase from July 2017 and a 0.5 per cent decrease compared to June 2018.
Attached property sales in July 2018 totalled 354, a 34.8 per cent decrease compared to the 543 sales in July 2017. The benchmark price of an attached home is $856,000. This represents a 12.1 per cent increase from July 2017 and 0.4 per cent decrease compared to June 2018.
* Areas covered by Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta.
The real estate industry is a key economic driver in British Columbia. In 2017, 35,993 homes changed ownership in the Board’s area, generating $2.4 billion in economic spin-off activity and an estimated 17,600 jobs. The total dollar value of residential sales transacted through the MLS® system in Greater Vancouver totalled $37 billion in 2017. The Real Estate Board of Greater Vancouver is an association representing nearly 14,000 REALTORS® and their companies.