May 2019 Market Update
Vancouver Real Estate
May sees modest increase in home sales while housing supply reaches five-year high
Metro Vancouver home sales eclipsed 2,000 for the first time this year in May, although home buyer demand remains below historical averages.
Sales in Greater Vancouver totalled 2,638 in May 2019, a 6.9% decrease from the 2,833 sales recorded in May 2018, and a 44.2% increase from the 1,829 homes sold in April 2019.
Last month’s sales were 22.9% below the 10-year May sales average.
“High home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today,” Ashley Smith, REBGV president said.
The total number of homes currently listed for sale on the MLS® in Metro Vancouver is 14,685, a 30% increase compared to May 2018 (11,292) and a 2.3% increase compared to April 2019 (14,357).
“Whether you’re a buyer looking to make an offer or a seller looking to list your home, getting your pricing right is the key in today’s market,” Smith said. “To be competitive, it’s important to work with your local REALTOR® to assess and understand the latest trends in your neighbourhood and property type of choice.”
For all property types, the sales-to-active listings ratio for May 2019 is 18%.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,006,400. This represents an 8.9% decrease over May 2018.
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 May 2019 reached 917, a 1.4% decrease from May 2018. The benchmark price for detached properties is $1,421,900. This represents an 11.5% decrease from May 2018.
TOWNHOMES
Sales of Townhomes in May 2019 reached 412, a 2% increase from May 2018. The benchmark price for Townhomes is $779,400. This represents a 7.6% decrease from May 2018.
CONDOS
Sales of Condos in May 2019 reached 1,246, a 12.5% decrease from May 2018. The benchmark price for condo properties is $664,200. This represents a 7.3% decrease from May 2018.
