Greater Vancouver Housing Market – Current Statistics for July 2016
Here is a quick summary of what happened in the Vancouver real estate market during the month of July. 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
Happy August! Hope that you are enjoying the last few days of the Olympics. We have seen impressive world records in Rio…and a world record “implementation” of the new 15% foreign buyer tax in Metro Vancouver. Ouch! Thank you for the short term notice on that!I think we can all agree that the execution of the new tax was a real surprise. The BC government ignored the calls to exempt real estate transactions that were in the process of closing and didn’t grandfather the signed agreement prior to August 2nd. The new tax created various unfortunate situations, lots of frustrations and financial losses for both Buyers AND Sellers.
The tax is now added to the Property Transfer Tax and applies to all residential properties purchased by foreign nationals or foreign-controlled corporations.
“While we’re unhappy with the approach the government has taken, this tax is now law,” Dan Morrison, Board president said. “We must all ensure we’re doing what we can to help our clients understand and comply with the new tax.”
We have yet to see the complete ripple effect of this new tax. It certainly will create short-term volatility in the market. Who could have predicted the last move from the government? Nobody really. This is why the Real Estate market is so hard to predict. All we know is that the prices have historically gone up over a long period of time. This is good news for people that take the long-term approach of investing vs the short-term tactic of speculating in the Real Estate market.
Overall in July 2016, there was a decrease of 18,5% in sales vs July 2015 (last month’s sales were 6.5 per cent above the 10-year sales average for the month) and an increase of 6.9% in inventory from June 2016 and a decrease of 27.4% when compared to July 2015. Prices increased between 27.4% (condo) and 38% (detached home) over last year.
The Real Estate activity is not as “crazy” as it used to be when bidding wars were the norm. Home Buyers Alert! You might find new purchase opportunities especially for high-end products and luxury properties.
As for Sellers, it will be very important to monitor the market closely in your neighborhood and properly introduce your house in your local market. No time for laziness here. Hiring a competent realtor is key. Find one that has worked in all types of markets. Generating top dollars has a lot to do with the marketing strategy regardless of the market situation!
SPECIAL TOOLS FOR YOU! I’m very pleased to announce that last month 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 and enjoy the rest of the summer!
Home Sales Move Off Of Record-Breaking Pace In July
Metro Vancouver* homes sales resembled more typical levels in July. This is the first time since January that home sales in the region have registered below 4,000 in a month.“After several months of record-breaking sales activity, home buyer demand returned to more historically normal levels in July,” Dan Morrison, REBGV president said. Last month’s sales were 6.5 per cent above the 10-year sales average for the month.
Number of Sales: 3,226 or 18.9% decrease compared to 3,978 sales recorded in July 2015, and a decrease of 26.7 per cent compared to the 4,400 sales in June 2016. Sales of detached properties in June 2016 reached 1,077, a decrease of 30.9 per cent from the 1,559 detached sales recorded in July 2015. Sales of apartment properties reached 1,602 in July 2016, a decrease of 7.3 per cent compared to the 1,729 sales in July 2015.
Percent of Original List Price Received at Sales: 100%, which is 1.7% higher than July 2015.
Sales-to-Active-Listings Ratio: 38.6% vs 31% in July 2015. A seller’s market typically occurs when this ratio exceeds 20 per cent for a sustained period of time. ***The Sales Ratio in June 2016 was 53% in Downtown Vancouver and 18% in Vancouver Westside for the Detached Home Market.
Total Inventory: 8,351, a decline of 27.4% compared to this time last year (11,505), and a 6.9% increase compared to June 2016 (7,812). There were 5,241 homes listed for sale listing in Metro Vancouver last month, an increase of 2.5% compared to the 5,112 new listings reported in July 2015 and a 10.8 per cent decrease compared to June 2016 when 5,875 properties were listed.
Benchmark Price: $930,400 an increase of 32.6% over July 2015. The benchmark price for detached properties increased 38 per cent from June 2015 to $1,578,300. Condos increased by 27.4% over the last year to $510,600.
Median Days on Market: 11 days vs 19 days in June 2015. If we take a closer look at Downtown Vancouver, the Median Days on Market remained at 8 days since March 2016. For more information about your neighborhoods-level sales and price statistics, I strongly encourage you to download the latest SnapStats Report.