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January 2019 – Market Update From Francis Piché



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,

It’s been a slow start so far in 2019 and it might be the time to consider really good opportunities for home buyers… “Employment is high, rates are low, and homes prices are essentially flat. 2019 is shaping up to be a year of rare opportunities,” said the CEO of Royal LePage Canada

Last month’s sales were 36.3 per cent below the 10-year January sales average and were the lowest January-sales total since 2009.

“REALTORS® are seeing more traffic at open houses compared to recent months, however, buyers are choosing to remain in a holding pattern for the time being,” Phil Moore, REBGV president said.

Will the upcoming spring season trigger buyers to change the market dynamic? There are certainly more choices available to them, which makes it easier to find the gem.

As you know, we can never generalize the statistics in Real Estate as the market trends are very local. We can still see high demand for certain products. The price range of the property, the location and the overall condition of the home are important factors that make a real difference when selling a house.

Pricing a property appropriately with a sound marketing plan can accelerate the sale for Sellers and a strategic buying plan coupled with unique purchasing “tricks” can make a Buyer very happy in a negotiation. This is why, It’s VERY 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 dynamic market.

There are very distinct trends in the Real Estate market based on location. Some areas are still demonstrating a balanced Market and others remain in a Buyer’s Market. 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: 18% vs 29% in December 2018
Port Moody: 13% vs 8% in December 2018 (increase)
Port Coquitlam: 12% vs 19% in December 2018
Maple Ridge: 12% vs 16% in December 2018
North Vancouver: 11% vs 16% in December 2018
New Westminster: 10% vs 15% in December 2018
East Vancouver: 8% vs 9% December 2018

Here are the strongest markets for Attached Homes:

Port Moody: 30% vs 37% in December 2018
New Westminster: 27% vs 20% in December 2018 (increase)
Maple Ridge: 22% vs 15% in December 2018 (increase)
Coquitlam: 16% vs 20% in December 2018
Port Coquitlam: 15% vs 28% in December 2018
North Vancouver: 15% vs 21% in December 2018
East Vancouver: 14% vs 22% in December 2018
Burnaby: 14% vs 14% in December 2018
Westside Vancouver: 10% vs 16% in December 2018

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

Sales have declined since the mortgage stress test was introduced at the beginning of last year. Last month’s sales were 36.3 per cent below the 10-year January sales average and were the lowest January-sales total since 2009.

The overall market in January was in a Buyer’s Market with a 10% Sales-to-Active Listings Ratio.

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

Below, we can see that the Home Price Index has decreased by 7.2% since July 2018.

And pricing is on the downward trend 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!

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!

Home Listings Increase While Buyers Remain In Holding Pattern

 

Home listings continue to increase across all housing categories in the Metro Vancouver housing market while home buyer activity remains below historical averages.

Last month’s sales were 36.3 per cent below the 10-year January sales average and were the lowest January-sales total since 2009.

“REALTORS® are seeing more traffic at open houses compared to recent months, however, buyers are choosing to remain in a holding pattern for the time being,” Phil Moore, REBGV president said.

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. “Home prices have edged down across all home types in the region over the last seven months,” Moore said.

“Economic fundamentals underpinning our market for home buyers and sellers remain strong. Today’s market conditions are largely the result of the mortgage stress test that the federal government imposed at the beginning of last year,” Moore said. “This measure, coupled with an increase in mortgage rates, took away as much as 25 per cent of purchasing power from many home buyers trying to enter the market.”

January’s Statistics

Number of Sales: 1,103 in January 2019, a 39.3 per cent decrease from the 1,818 sales recorded in January 2018, and a 2.9 per cent increase from the 1,072 homes sold in December 2018. Sales of detached properties in January 2019 reached 339, a 30.4 per cent decrease from the 487 detached sales recorded in January 2018. Sales of apartment properties reached 559 in January 2019, a 44.8 per cent decrease compared to the 1,012 sales in January 2018. Last month’s sales were 36.3 per cent below the 10-year January sales average and were the lowest January-sales total since 2009.Percent of Original List Price Received at Sales: 95.1% vs 94.9% in December.

Sales-to-Active-Listings Ratio: The sales-to-active listings ratio for January 2019 is 10.2%. By property type, the ratio is 6.8% for Detached homes11.9% for Townhomes, and 13.6% for Condominiums.

Total Inventory: 10,808, a 55.6 per cent increase compared to January 2018 (6,947) and a 5.2 per cent increase compared to December 2018 (10,275). There were 4,848 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2019. This represents a 27.7 per cent increase compared to the 3,796 homes listed in January 2018 and a 244.6 per cent increase compared to the 1,407 homes listed in December 2018.

Benchmark Price: $1,019,600. This represents a 4.5 per cent decrease over January 2018, and a 7.2 per cent decrease over the past six months. The benchmark price for Detached Homes is $1,453,400. This represents a 9.1 per cent decrease from January 2018, and an 8.3 per cent decrease over the past six months. The benchmark price for Condo properties is $658,600. This represents a 1.7 per cent decrease from January 2018, and a 6.6 per cent decrease over the past six months. The benchmark price of a Townhome is $800,600. This represents a 0.5 per cent decrease from January 2018, and a 6.2 per cent decrease over the past six months.

Median Days on Market: 43 days vs 33 days in December 2018. If we take a closer look at Downtown Vancouver, the Median Days on Market was 30 vs 34 days in December 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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