March 2019 Market Update
Vancouver Real Estate
Prospective home buyers remain on the sidelines in March
Metro Vancouver home sales dipped to the lowest levels seen in March in more than three decades.
Sales in Greater Vancouver totalled 1,727 in March 2019, a 31.4% decrease from the 2,517 sales recorded in March 2018, and a 16.4% increase from the 1,484 homes sold in February 2019.
Last month’s sales were 46.3% below the 10-year March sales average and was the lowest total for the month since 1986.
“Housing demand today isn’t aligning with our growing economy and low unemployment rates. The market trends we’re seeing are largely policy induced. For three years, governments at all levels have imposed new taxes and borrowing requirements on to the housing market,” Ashley Smith, REBGV president said.
The total number of homes currently listed for sale on the MLS® in Metro Vancouver is 12,774, a 52.4% increase compared to March 2018 (8,380) and a 10.2% increase compared to February 2019 (11,590).
For all property types, the sales-to-active listings ratio for March 2019 is 13.5%.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,011,200. This represents an 7.7% decrease over March 2018, and a 0.5% decrease compared to February 2019.
It is a very polarizing market - while most property types in most areas are still dropping in price, there are pockets that have seen a bounce back in price since their lows in November. Higher levels of activity are seen in condo's under $800,000 - and well priced homes are selling in the first week. Detached home sales in the Vancouver West area were up 23% over March 2018.
The Sales to Active Listings Ratio has inched up for all property times over the last few months, with Condo's and Townhomes entering "Balanced Market" conditions. Detached homes remain in Buyers Market territory.
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 March 2019 reached 532, a 26.9% decrease from March 2018. The benchmark price for detached properties is $1,437,100. This represents an 10.5% decrease from March 2018.
TOWNHOMES
Sales of Townhomes in March 2019 reached 280, a 28.8% decrease from March 2018. The benchmark price for Townhomes is $783,600. This represents a 6% decrease from March 2018.
CONDOS
Sales of Condos in March 2019 reached 874, a 35.2% decrease from March 2018. The benchmark price for condo properties is $656,900. This represents a 5.9% decrease from March 2018.
