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Vancouver Housing Market Update


Vancouver Housing Report - February, 2019

Richmond currently is showing a supply of about 20 months when 777 homes are for sale and with the 5 % monthly SOLD rate. The Richmond market is projected to remain a Buyer's market for a while. 

On average, single family homes in Greater Vancouver experienced a monthly decline of $13,230 which was the same as the month before. The Fraser Valley's housing market was balanced with just about $500 monthly price decline.

The condo market showed 63% the condos in Greater Vancouver (Lower Mainland) experiencing decreasing prices. At the same time, 67% of townhouse markets were decreasing in values.

The Condo/Townhouse Markets are expected to continue in Buyers Market territory for the short term.

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Vancouver Housing Market Update


Vancouver Housing Report - January 2019 

The Real Estate Board of Greater Vancouver (REBGV) reported that home sales at 1,103 units declined 39.3% compared to January 2018. It showed a 2.9% increase compared to the previous month.

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

vancouver kitsilano home

Effect Of Strict Mortgage Rules

The mortgage stress test mandated by the Office of the Superintendent of Financial Institutions, came into effect in 2018. The rules requires borrowers to show they can service their mortgage at their contractual mortgage rate plus 2%, or the 5-year benchmark rate published by the Bank of Canada. This has resulted in the cooling of the housing markets by limiting the ability of buyers to qualify for mortgages as it reduced the loans buyers would be able to borrow to buy a home.

Declining Home Prices

The benchmark price for single family detached homes at $1,453,400 was 9.1% lower than a year ago. The townhosue benchmark price at 800,600 was 6.2% over the past six months. The condo benchmark price at $658,600 was 6.6% lower compared to six months ago.

The housing market is undergoing some major adjustments to higher interest rates, stricter mortgage rules and government policy measures that dampened the market. In a declining housing market, home buyers are more cautions and they prefer to adopte a wait-and-see attitude to see how the market turns out.

Sellers who are motivated to sell are now adjusting to the market and many are starting to reduce their listing prices.  

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October 2018 Greater Vancouver Housing Market Update


October 2018 Greater Vancouver real estate market video news update, Oct 18, 2018

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region dropped 34.9% compared to October 2017. Total sales for the month were 26.8% below the 10-year October sales average.

Home sale activity across Metro Vancouver remained below long-term historical averages in October.

The current supply has returned to the level about four years ago.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 12,984, a 42.1% increase compared to 9,137 in October 2017 and a 0.8% (13,084) fewer homes for sale compared to September 2018.

Tighter mortgage rules and declining single-family home sales and prices are alredy sending shock waves to the market. Waning demand for townhouses and condos the past few months are reported across the lower mainland of Vancouver and Fraser Valley. The big worry is what happens to home sales and prices if a recession hits in the next two or three years? Could home prices fall significantly and turn to a recession?  

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Canadian Housing Report & News


Are Australian house prices going to join the Canadian Club? - NEWS.com.au

Sun, 11 Nov 2018 20:15:00 GMT

Housing crash — is it time to panic? Remember — in a market where people expect price growth, even a short fall can make a big difference. The relatively brief ...

 

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Prices easing but Canada's housing market still 'highly vulnerable': CMHC - CTV News

Thu, 25 Oct 2018 17:58:38 GMT - Financial Post

Prices easing but Canada's housing market still 'highly vulnerable': CMHCCTV News... a decline in prices. Despite these factors, markets in Toronto, Vancouver, Victoria and Hamilton are still considered to have a “high degree of overall ...

Read more ...

 

 

Canadian Real Estate Prices Turn Negative According To The US Federal Reserve - Better Dwelling

Fri, 19 Oct 2018 13:40:27 GMT

Better DwellingCanadian Real Estate Prices Turn Negative According To The US Federal ReserveBetter DwellingSince prices were below the peak, they weren't in “bubble” territory. In a more technical sense, they were still experiencing the ..... Canada' ...

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Vancouver Sales Report - January, 2017


January 2017 Real Estate Sales Report

Residential property sales in the region totalled 1,523 in January 2017, a 39.5 per cent decrease from the 2,519 sales recorded in January 2016 and an 11.1per cent decrease compared to December 2016 when 1,714 homes sold.  View January, 2017 monthly statistical reports REBGV.

The total number of homes currently listed for sale on the Multiple ListingService® in Metro Vancouver is 7,238, a 9.1 per cent increase compared to January 2016 and a 14.1 per cent increase compared to December 2016.

Generally, analysts say that downward pressure on home prices occurs whenthe ratio dips below the 12 per cent mark for a sustained period,while homeprices often experience upward pressure when it surpasses 20 per cent overseveral months.

Sales of detached properties in January 2017 reached 444, a decrease of 57.6 per cent from the 1,047 detached sales recorded in January 2016.

Sales of apartment properties reached 825 in January 2017, a decrease of 24.7 per cent compared to the 1,096 sales in January 2016.The benchmark price ofan apartment property is $512,300.

Attached property sales in January 2017 totalled 254, a decrease of 32.4 percent compared to the 376 sales in January 2016.

East Vancouver Housing Market

The sales to listing ratio for East Vancouver reversed from the strong Seller Market to a balanced market for detached homes in July 2017, due to weaker demand for detached homes in the second half of 2016. Similarly, in the second half of 2016, townhouses' strong Buyer Market weakened and in January 2017, it entered into a balanced market. Condo demand in East Vancouver also weakened and the sales to active ratio is expected to become balanced by end March, 2017. 

Click here to view the latest Stats Centre Report for Vancouver East.

east van

HPI Prices For Detached Homes Declining

The year over year HPI price for East Vancouver is 16.7% higher, but compared to it's peak during $1,537,300 in September 2016, the January HPI price for East Vancovuer at $1,440,500 was 6% lower. The trend for lower home prices is expected to continue to decline in 2017.

hpi east van

The HPI price for detached home at $1.0 million is still a very lofty price tag for a single family home in East Vancouver. From current price level at over $1.4 million, wishing that East Vancouver detached home prices to reach $1.0 million, there is a price gap that requires a 30% decline from current price level.

We will report back from time to time, what the East Vancouvert housing market situation for 2017.