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December 2018 & Year In Review – Market Update From Francis Piché



Greater Vancouver Housing Market – Current Statistics for December 2018 & Year In Review

Here is a quick summary of what happened in the Vancouver real estate market during the month of January. 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 francis@francispiche.com To view the email I sent to my subscribers, please click here

Dear Friends,

A new full moon, a new year! If you haven’t had the chance to see the total lunar eclipse yesterday, also called Blood Moon eclipse, it was simply spectacular. I was lucky enough to witness it from the Gordon Southam Observatory next to the Planetarium Star Theatre. See picture below.

Here is a little recap of last year’s market. We dealt with two different market speeds last year. The sales were growing from January until May. And then, we have seen a decrease in sales and price starting in June 2018.

Overall, Metro Vancouver home sales in 2018 were the lowest annual total in the region since 2000. Last year’s sales total was 25 per cent below the region’s 10-year sales average.

Last month’s sales were 43.3 per cent below the 10-year December sales average.

The MLS® HPI composite benchmark price for all residential homes in Metro Vancouver ends the year at $1,032,400. This is a 2.7 per cent decrease compared to December 2017.

The last time the MLS® HPI composite benchmark price for all residential homes in Metro Vancouver was around that level was in July 2017.

“As the total supply of homes for sale began to accumulate in the spring, we began to see downward pressure on prices (-2.7% year-over-year change) across all home types throughout the latter half of the year,” Phil Moore, REBGV president said.

“The supply of homes for sale will be an important indicator to follow in 2019. We’ve had record building activity in recent years and many projects will complete soon. This will provide additional housing options for home buyers across the region,” Moore said.

Additional housing options could mean lower prices to come if the demand isn’t increasing. There will be plenty of opportunities for Buyers with new inventory and new opportunities. It might be the perfect time to upsize or right-size!

It’s always important to remember the long-term goal of real estate and analyze your personal situation in the market.

We can never generalize the statistics in Real Estate as the market trends are very local. Although multiple offers aren’t the norm anymore, a home for sale can still receive multiple offers when the property is priced well, is situated in a compelling location and is in great condition.

With that said, in this market, it’s important to work with qualified and experienced agents that know how to best negotiate and how to provide sound advice to allow you to be successful in this changing market.

There are very distinct trends in the Real Estate market based on location. Some areas are still demonstrating a balanced Market for the Detached Homes and a Seller’s market for the Attached Homes. Take a look, it’s noteworthy!

Here are the strongest markets for Detached Homes:
***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.
***All stats are available to you in the complimentary SnapStats Report.

Pitt Meadows: 29% vs 23% in November 2018 (increase)
Port Coquitlam: 19% vs 17% in November 2018 (increase)
North Vancouver: 16% vs 11% in November 2018 (increase)
New Westminster: 15% vs 17% in November 2018
Maple Ridge: 16% vs 16% in November 2018
East Vancouver: 9% vs 8% November 2018
Coquitlam: 9% vs 13% in November 2018

Here are the strongest markets for Attached Homes:

Port Moody: 37% vs 19% in November 2018 (increase)
Port Coquitlam: 28% vs 29% in November 2018
North Vancouver: 21% vs 25% in November 2018
East Vancouver: 22% vs 24% in November 2018
New Westminster: 20% vs 21% in November 2018
Coquitlam: 20% vs 19% in November 2018
Westside Vancouver: 16% vs 16% in November 2018
Maple Ridge: 15% vs 21% in November 2018

And when you look at the overall picture, here is what we notice:

Last month’s sales were 43.3 per cent below the 10-year December sales average and last year’s sales total was 25 per cent below the region’s 10-year sales average.

Despite the difference between the Detached and Attached markets, the overall market in 2018 was in a Buyer’s Market with a 10% Sales-to-Active Listings Ratio. As a reference, the Sales-to-Active Listings Ratio was 25% in June 2018 and 11% in December 2018.

For a detailed look in by property type in 2018, see below. Detached homes were in a Buyer’s market vs the Townhomes and Condos in a soft Balanced market.

Below, we can see that the Home Price Index has decreased by 2.7% over last year.

And pricing is on the downward trend since June for all types of properties.

***It is very important to pay attention to local market trends as they tend to be VERY different. Look at the SnapStats Report and consult your realtor to establish the best winning strategies either for selling or buying. The SnapStats Report is a phenomenal report that you can consult for free to get familiar with the latest trends. Download the SnapStats Report here.

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.

Happy read, happy watch and HAPPY MAGIC with the new full moon!!

Cheers,

Francis
PS: If you are around, let’s go for coffee and let me introduce you to all my complimentary tools to best serve you!

Metro Vancouver Home Sales Decline Below Historical Averages In 2018

Metro Vancouver home sales in 2018 were the lowest annual total in the region since 2000. Last year’s sales total was 25 per cent below the region’s 10-year sales average.

“This past year has been a transition period for the Metro Vancouver housing market away from the sellers’ market conditions we experienced in previous years,” Phil Moore, REBGV president said. “High home prices, rising interest rates and new mortgage requirements and taxes all contributed to the market conditions we saw in 2018.”

“The supply of homes for sale will be an important indicator to follow in 2019. We’ve had record building activity in recent years and many projects will complete soon. This will provide additional housing options for home buyers across the region,” Moore said.

“As the total supply of homes for sale began to accumulate in the spring, we began to see downward pressure on prices across all home types throughout the latter half of the year,” Moore said.

The benchmark price of detached homes in the region declined 7.8 per cent over the last 12 months and 7.3 per cent since June 2018. Apartment homes increased 0.6 per cent over the last 12 months and have declined 6.4 per cent since June 2018. The benchmark price for townhomes in Metro Vancouver have increased 1.3 per cent since December 2017 and have decreased 5.3 per cent over the last six months.

 

December’s Statistics

 

Number of Sales: 1,072 or a 46.8% decrease compared to December 2017 when 2,016 home sold, and 33.3% per cent decrease compared to November 2018 when 1,608 homes sold. Sales of detached properties in December 2018 reached 348, a 43.6 per cent decrease from the 617 detached sales recorded in December 2017. Sales of apartment properties reached 535 in December 2018, a 34 per cent decrease compared to the 1,028 sales in December 2017. Last month’s sales were 43.3 per cent below the 10-year December sales average.Percent of Original List Price Received at Sales: 94.9% vs 95.5% in November.

Sales-to-Active-Listings Ratio: The sales-to-active listings ratio for December 2018 is 10.4%. By property type, the ratio is 7.1% for Detached homes12% for Townhomes, and 14.2% for Condominiums.

Total Inventory: 10,275, a 47.7 per cent increase compared to December 2017 (6,958) ) and a 16.5 per cent decrease compared to November 2018 (12,307). There were 1,407 detached, attached and apartment homes newly listed for sale on the MLS® in Metro Vancouver in December 2018. This represents a 25.6 per cent decrease compared to the 1,891 homes listed in December 2017 and a 59.3 per cent decrease compared to November 2018 when 3,461 homes were listed.

Benchmark Price: $1,032,400. This is a 2.7 per cent decrease compared to December 2017. The benchmark price for Detached Homes is $1,479,000. This represents a 7.8 per cent decrease from December 2017 and a 1.4 per cent decrease compared to November 2018. The benchmark price for Condo properties is $664,100. This represents a 0.6 per cent increase from December 2017 and a 0.6 per cent decrease compared to November 2018. The benchmark price of a Townhome is $809,700. This represents a 1.3 per cent increase from December 2017 and a 1.1 per cent decrease compared to November 2018.

Median Days on Market: 33 days vs 28 days in November 2018. If we take a closer look at Downtown Vancouver, the Median Days on Market was 34 vs 24 days in November 2018. For more information about your neighbourhoods’ sales and price statistics, I strongly encourage you to download the latest SnapStats Report.

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Francis Piché
421 Pacific Street
Vancouver, BC V6Z 2P5

Cell: 778-558-9948
Office: 604-685-5951
Email: francis@francispiche.com

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