Metro Vancouver Home Sales – The Real Estate Board of Greater Vancouver (REBGV) announced that the number of homes sold in Metro Vancouver during October. these are decreased by 45.5% from the year before. The largest monthly decline on record. The result is a direct consequence of BC’s 15% tax on foreign buyers. Which went into effect on August 2nd. It is had an immediate impact on housing prices.
Metro Vancouver Home Sales Down 45.5% in October as Rate Hikes Bite
In Metro Vancouver, home sales dropped in October around 19%. If we compared to the same month a year earlier around 45% from the previous month. Based on the most recent figures given by the Greater Vancouver Real Estate Board (REBGV).
Sales in the area have dropped over the previous few months.
The sharp decline in sales comes as mortgage rates have climbed in recent months. Further increases are expected in 2018. The Bank of Canada increased their benchmark interest rate again this year. Most recently, they increased in October.
Prices may be under pressure. As a result of buyers considering it more costly to finance a house purchase. because of higher mortgage rates. In Metro Vancouver, it appears to be this condition. Where property values have started to slowly decline. After making significant increases for years.
The average cost of all residential properties in Metro Vancouver in October was near to $1,066,700. This is roughly 5% below the record set during June with around 2% less than what it was in September.
Detached home sales decreased by 25% from a year earlier and by 50% from September. While attached home sales fell 40% from September and 15% from a year ago. Apartment sales were down 47% from September and 22% from a year ago.
Risky Businesses Making the Most Headway in the Market
House sales in Metro Vancouver declined in October. Also, prices continued to cool after hitting record highs in the spring.
Residential real estate sales in the area reached a total with around 2,153 in October, based on the Real Estate Board of Greater Vancouver (REBGV). Around 14 per cent decline from the 2,513 sales recorded in October 2017.
Also, October’s sales dropped by about 35% from the month’s 10-year average.
Positively, sales of condos and townhouses increased over the previous year. While those of detached homes continued to decline. This is probably, due to more people are looking for more affordable housing options. As single family home costs continue to rise.
The REBGV said that the benchmark price for all residential properties in Metro Vancouver is now around $1,075,400. Around 0.8% compared to September and 3.9% less than in May 2018, its price’s high.
Sales of attached homes (condos and townhomes) totaled around 1,246 in October. Around 16 per cent increase from 1,067 sales in October 2017. The benchmark price for an attached home is now around $683,700. Around 0.4 per cent decrease from September and a 3.7 per cent drop from its peak price reached in June 2018.
Detached home sales reached 907 last month, a 19 per cent decline from the 1,146 detached homes
Why is Home Affordability So Important for Millennials?
One of the most important concerns for millennials is house affordability. When considering purchasing a home. As housing prices continue to rise. The living wage is pricing out a number of millennials. They are pressured to reside with their parents or lease an apartment.
With interest rates expected to rise again in 2018. Home affordability will become even more of a concern for millennials. If you want to purchase a house in Metro Vancouver. This is the time to act. Before prices become even more unaffordable.
ture of the market will depend on how interest rates move and how the economy performs.
If interest rates stay low. We could see a rebound in the housing market. If rates rise too much. The market could suffer as a result. The key will be to watch how the economy performs. If job growth remains strong and wages continue to grow. We could see a healthy housing market despite higher interest rates.
What about the Luxury Real Estate Market?
The luxury real estate market in Metro Vancouver is still going strong. Despite the recent interest rate hikes. In October, sales of houses cost over $4 million increased with almost 9%. If we compared to the same month last year.
There is still high demand for luxury properties in the region, especially from buyers from Mainland China. Many of these buyers are considering a secure investment opportunity. They see Vancouver as a stable and desirable place to live.
The recent interest rate hikes are not deterring these buyers. Who are often paying cash for their purchases. In fact, many analysts believe that the increased rates may be adding to a increase in luxury market pricing. As buyers compete for a limited number of properties.
Whatever the reason, the Metro Vancouver luxury real estate market is still booming. If a luxury home in the area has gone on the market to sell or buy. The timing is right now to take action.
The Future of the Market
The Metro Vancouver housing market is down .% in October as interest rate hikes start to bite. The market is still performing well in some locations. The fuith interest rates on the rise. In the near future, this tendency is generally going to continue. If you want to purchase a house in Metro Vancouver. Before responding, you might want to wait for the market to settle.
Conclusion
The data is clear: the Metro Vancouver housing market is in a slump. In compared to the previous year, sales have dropped with almost 45%. House prices have begun to stagnate or even decline in some cases.
