Over the past month, our clients have been deeply curious about the state of the market and our take on the future direction of prices and supply. While can’t entirely predict the market, we can certainly sense that change is underway in terms of a shift in demand and a decrease in multiple offer scenarios across the City.
“The supply of homes for sale today is beginning to return to levels that we haven’t seen in our market in about four years,” Phil Moore, REBGV president said. “For home buyers, this means you have more selection to choose from. For sellers, it means your home may face more competition, from other listings, in the marketplace.”
The major points of discussion for prospective Buyers and Sellers is with respect to a bottom in prices, potential interest rate hikes and our new Mayor’s plans for densification and affordable housing.
New government policies, taxes and a changing lending climate have all had a part in stopping or even reversing the rising home prices we’ve seen in previous years.
For all property types, the sales-to-active listings ratio for October 2018 is 15.1%. By property type, the ratio is:
– 3% for detached homes
– 3% for townhomes
– 6% for condominiums
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.
On the East side, the benchmark price for a detached home has been on a slow, steady decline since the beginning of the year. The townhouse and half-duplex market has been dropping since the summer and the condo market has remained fairly flat.
On the West side, the benchmark price for a detached home has been on a slow, steady decline since mid 2017. Sales and prices for all product types did see a slight increase in October compared to September. There was a total of 374 sales, up from 269 sales in September.
This market provides EXCELLENT OPPORTUNITIES for move-up buyers to upgrade to a larger home as the higher priced properties generally take the biggest price hit. It is also a good opportunity to move to the Westside as the benchmark price for a detached home there has been steadily declining since mid 2017.
In a market like this we normally recommend to sell first with a longer completion date and then buy. There is a bit more time to think, check out the neighbourhood and have a building inspection. It’s a calmer market for people to make rational decisions and settle into their next home.
If you are thinking of making a change, give us a call and we can plan your next steps together.
If you’re interested in seeing the full market reports and stats, sign up for our Newsletter to receive more in-depth analysis and stats on all the neighbourhoods in the Lower Mainland.
*REBGV Editor’s Note: Areas covered by the 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. Visit rebgv.org for all of the detailed comparisons.
You can use this dashboard to help your search for a new property.
The save searches tab will show you all the searches you have saved. A saved search will let you come back to view new property listings with your given search parameters. For example if you are looking for a 2 bedroom apartment in Burnaby you can save that search and quickly check for new listings or even get us to send you an email when new properties are listed.
The saved listings tab will show all your saved listings. If you are interested in a few properties and want to save them to come back to later this gives you quick access to that.