It’s no secret that the housing market in Metro Vancouver is catching up with the rest of Canada. Increasing prices for homeowners and sky-rocketing prices for those looking to buy their first place seem to be inevitable, but this story on housing trends might surprise you.
Introduction
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totaled 2,518 in May 2018, a 35.7 per cent decrease from the 3,893 sales recorded in May 2017.
May’s sales were also 25.6 per cent below the 10-year sales average for the month.
“Home buyers and sellers continued to adjust to new federal mortgage rules and higher interest rates last month,” Ashley Smith, REBGV president said.
If you’re thinking of buying or selling a home in Metro Vancouver, it’s important to understand these trends so you can make informed decisions about timing and pricing.
Information about prices by region
Looking at home sales and prices by region, we see that the average home price in Metro Vancouver has declined by 2.4% to $924,800 in the past year. This is largely due to a decrease in sales of detached homes, which have fallen by 11%. Meanwhile, apartment and townhome prices have remained relatively stable, with a 1.5% and 0.8% decrease respectively.
When breaking down sales and prices by region, we see a more mixed picture. In the City of Vancouver, for instance, detached home prices have actually risen by 3% in the past year to an average of $2,465,000. This is likely due to continued strong demand from buyers looking for single-family homes in Vancouver’s tight housing market.
Meanwhile, in other regions like Richmond and Burnaby, we see larger decreases in both home sales and prices. In Richmond, the average home price has fallen by 5% to $1,537,000 while sales have decreased by 8%. In Burnaby, the average home price has declined by 3% to $1,309,000 while sales are down 10%.
These regional trends are important to keep an eye on if you’re thinking about buying or selling a home in Metro Vancouver. Prices can vary widely from one municipality to another, so it’s important to do your research before making any decisions.
Long Term Trends
As Metro Vancouver’s housing market continues to cool, sales and prices are both down from last year’s highs.
Sales in the region were down 27.7 per cent in September compared to the same month last year, according to the latest data from the Real Estate Board of Greater Vancouver (REBGV).
The number of homes sold in Metro Vancouver has now declined for five consecutive months, and is down 31.6 per cent so far this year compared to 2016.
Meanwhile, the average price of a home in the region is down 5.9 per cent compared to a year ago, and is now sitting at $943,700. That’s a decline of nearly $60,000 from the peak price seen last spring.
Looking at specific property types, detached homes have been hit hardest by the downturn. Sales of detached houses are down 38.8 per cent from a year ago, while the average price has fallen 8.4 per cent to just over $1.4 million.
It’s a different story for condos and townhouses, which have seen only modest declines in both sales and prices so far this year. Sales of attached homes were down just 10 per cent in September compared to last year, while the average price was actually up slightly at $652,600.
Short Term Trends
There is no doubt that Metro Vancouver’s housing market is in a slump. Sales have been declining for more than a year, and prices have begun to follow suit.
The most recent data from the Real Estate Board of Greater Vancouver (REBGV) shows that sales in the region totaled just 2,253 in August 2018. This is a 35.8% decrease from the 3,520 sales recorded in August 2017, and it’s the lowest August total since 2000.
What’s more, the REBGV’s data also shows that the benchmark price for all homes in Metro Vancouver is now $1,089,100. This represents a 5.6% decrease from the peak price of $1,155,300 that was reached in December 2016.
These trends are worrisome for anyone who owns a home in Metro Vancouver or is thinking about buying one. However, it’s important to keep things in perspective. It’s worth noting that while sales and prices are both down significantly from their peaks, they are still well above where they were just a few years ago.
For example, the region’s benchmark price was just $776,600 as recently as June 2013. And while sales have fallen sharply over the last year-and-a-half, they were still nearly double what they were during the worst of the financial crisis (2009 – 2010). So while there is no doubt that
