Greater Vancouver Housing Market – Current Statistics for August 2016
Here is a quick summary of what happened in the Vancouver real estate market during the month of August. If you would like a complimentary copy of the complete SnapStats report, including neighborhoods-level sales and price statistics, please give me a call at 778-558-9948 or email me at firstname.lastname@example.org. To view the email I sent to my subscribers, please click here
What is the ripple effect of the new 15% foreign buyer tax in Metro Vancouver? How is the market going?Those are the questions I get on a regular basis lately. Even CBC, French channel, asked me the same questions in a TV interview. 🙂 It is very interesting to see how the market is very specific and local.
Please see a Special 1-Page Report on the Detached homes that shows the year over year variance and month to month variance in different areas.
It is clear that the detached home market has slowed down. Prices haven’t changed that much yet and if you look at the SnapStats Report, which I highly recommend that you download every month from my newsletter, you will see that the sales ratios vary from different areas.
For instance, the sales ratio in Vancouver Westside was at 11% in August vs 18% in July, which means the market went from a Balanced market to a Buyer’s market. On the other hand, North Vancouver Detached market was sitting at 33% in August vs 45% in July. North Vancouver is in a Seller’s Market.
The Attached market remains strong. We still see multiple offers and Buyers MUST be prepared as always. I cannot stress enough how crucial the preparation is. Contact me for the specifics as to how to increase your chances to win in a multiple.
Botton line, you need to consult your realtor to establish the best winning strategies either for selling or buying because the location, types of products and the inventory level affect the pricing, which varies in different areas.
HINT: As you know, I love to negotiate, and I always enjoy generating savings or profits for my clients. I just LOVE IT! My hint is simply this – and this one is for the Buyers – Capitalize on the current market uncertainty and take advantage of the window of opportunity to buy properties in some areas where the competition is low. That would certainly be my talk track substantiated with facts and statistics in order to negotiate the best deal when I can. Ask me about Private Client Services to get the new hottest listings (Buyers Alerts)!
The reality is that I don’t foresee the “drop” in sales in the detached market for a long time. The BC economy is a leader in Canada. The job market is healthy. The interest rates are low and they should stay the same until the end of 2017 as per Scotiabank. Vancouver has the reputation of an emerging super prime market. The population is growing every year with new immigrants and the city is ranked among one of the best places to live in the world. What it means to me is that Vancouver will remain a strong Real Estate market in Canada for a while. It might be a great opportunity for some buyers to reconsider entering the market while the window is open.
SPECIAL TOOLS FOR YOU! I have added two more tools to my online suite to help you navigate the financials behind buying a home. If you are interested in how much a much a mortgage will cost you ‘upfront’ and ‘monthly’, check out the “Mortgage Tool”. Try playing around with the size of your downpayment to see how it will affect your monthly costs.
If you are looking to invest, please have a look at the “Investor Tool”. Use the interactive toggles on the left to see how changes to the purchase price, down payment size, and rent all affect your monthly cash flow. Will your property be cash flow positive? Remember that you can download every calculation you make to excel in the ‘Summary’ tab.
If you have any questions, please send me an email and I would be happy to help you for your Buying or Selling needs.
Watch the Real Estate Board of Greater Vancouver video below for the overall monthly summary or get the market speed for your home in your neighborhood with Market Speedo and the SnapStats report.
Once again, for the ones that like to read, simply scroll down below for the market summary.
Happy read & happy watch!
Metro Vancouver Home Sales Return To Typical August Levels
For the second straight month, home buyer demand in Metro Vancouver* moved off of the record-breaking pace seen earlier this year and returned to more typical levels.
From a historical perspective, last month’s sales were 3.5 per cent below the 10-year sales average for the month.
“The record-breaking sales we saw earlier this year were replaced by more historically normal activity throughout July and August,” Dan Morrison, REBGV president said. “Sales have been trending downward in Metro Vancouver for a few months. The new foreign buyer tax appears to have added to this trend by reducing foreign buyer activity and causing some uncertainty amongst local home buyers and sellers.
“It’ll take some months before we can really understand the impact of the new tax. We’ll be interested to see the government’s next round of foreign buyer data.”
“In aggregate, we continue to see an imbalance between supply and demand in most communities. However, we’re also seeing fewer detached sales in the highest price points and fewer detached home sales relative to all residential sales,” Morrison said. “This is causing average sale prices to show a decline in recent months, while benchmark home prices remain virtually unchanged from July.”
The average price is the simplest home price measure to explain but is not the most accurate since it may be skewed by the mix of properties. More high-end or low-end sales will skew the number up or down. Based on the Consumer Price Index, MLS HPI® benchmark prices are a more reliable and stable indicator of typical home prices across regions over time.
Number of Sales: 2,489 or 26% decrease compared to 3,362 sales recorded in August 2015, 10.2 per cent less than the 2,771 sales in August 2014; and one per cent less than the 2,514 sales in August 2013. August 2016 sales also represent a 22.8 per cent decline compared to last month’s sales. Sales of detached properties in August 2016 reached 715, a decrease of 44.6 per cent from the 1,290 detached sales recorded in August 2015. Sales of apartment properties reached 1,343 in August 2016, a decrease of 10.1 per cent compared to the 1,494 sales in August 2015.Percent of Original List Price Received at Sales: 99.5%, which is 1.2% higher than August 2015.
Sales-to-Active-Listings Ratio: 29.3% vs 28% in August 2015. A seller’s market typically occurs when this ratio exceeds 20 per cent for a sustained period of time. ***The Sales Ratio in August 2016 was 42% in Downtown Vancouver and 11% in Vancouver Westside for the Detached Home Market.
Total Inventory: 8,506 a decline of 21.9% compared to this time last year (10,897), and a 1.9% increase compared to July 2016 (8,351). There were 4,293 homes listed for sale listing in Metro Vancouver last month, an increase of 0.3% compared to the 4,281 new listings reported in August 2015 and a 18.1 per cent decrease compared to July 2016 when 5,241 properties were listed.
Benchmark Price: $933,100 an increase of 31.4% over August 2015 and a 4.9 per cent increase over the last three months. The benchmark price for detached properties increased 35.8 per cent from August 2015 to $1,577,300. Condos increased by 26.9% over the last year to $514,300.
Median Days on Market: 12 days vs 21 days in August 2015. If we take a closer look at Downtown Vancouver, the Median Days on Market is 10 days vs 8 days in July 2016. For more information about your neighborhoods-level sales and price statistics, I strongly encourage you to download the latest SnapStats Report.