June 2019 Market Update
Vancouver Real Estate
Housing supply up, home sales and prices down in June
With home buyer demand below long-term historical averages in June, the supply of homes for sale continued to accumulate in Metro Vancouver.
Sales in Greater Vancouver totalled 2,077 in June 2019, a 14.4% decrease from the 2,425 sales recorded in June 2018, and a 21.3% decrease from the 2,638 homes sold in May 2019.
Last month’s sales were 34.7% below the 10-year June sales average. This is the lowest total for the month since 2000.
“We’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver. Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach,” Ashley Smith, REBGV president said.
The total number of homes currently listed for sale on the MLS® in Metro Vancouver is 14,968, a 25.3% increase compared to June 2018 (11,947) and a 1.9% increase compared to May 2019 (14,685).
“Home buyers haven’t had this much selection to choose from in five years,” Smith said. “For sellers to be successful in today’s market, it’s important to work with your local REALTOR® to make sure you’re pricing your home for these conditions.”
For all property types, the sales-to-active listings ratio for June 2019 is 13.9%.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $998,700. This represents an 9.6% decrease over June 2018 and a 0.8% decrease compared to May 2019.
IN SUMMARY
BUYERS: You have more supply to choose from than you've had in over 5 years. The higher the price point you are looking at, the more likely it is you can negotiate on price and favourable terms. Low Ball offers are becoming increasingly common, and some are being accepted.
SELLERS: Make sure you are working with a professional who knows how to market your home extensively to maximize its exposure. Price is the most important factor and if you need to sell, make sure to price ahead of the downward curve. Smartly priced properties properties are still selling in the first week.
INVESTORS: You know we are in the late stages of the Slump Phase and are targeting the properties and investment strategies that thrive in this environment.
Metro Vancouver: Breaking It Down By Housing Type
DETACHED HOMES
Sales of Detached properties in June 2019 reached 760, a 1.8% decrease from June 2018. The benchmark price for detached properties is $1,423,500. This represents an 10.9% decrease from June 2018.
TOWNHOMES
Sales of Townhomes in June 2019 reached 341, a 7.8% decrease from June 2018. The benchmark price for Townhomes is $774,700. This represents a 8.6% decrease from June 2018.
CONDOS
Sales of Condos in June 2019 reached 1,243, a 23.9% decrease from June 2018. The benchmark price for condo properties is $654,700. This represents a 8.9% decrease from June 2018.
