The highlight of the June 2018 market report released by the Real Estate Board of Greater Vancouver (REBGV), showed that home sales dipped below long term historic averages, and supply reached a 3 year high.
“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” Phil Moore, REBGV president said. “Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”
In June 2018, realtors registered 2,425 residential property sales. This represented a 38% decline from the same period last year, and 29% below the 10 year June average.
The number of detached properties sold was 766, 42% less than June 2017.
The number of apartments sold was 1,240, 34.9% less than June 2017.
The number of attached properties sold was 419, 37.3% less than June 2017.
In June, there were 5,279 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver. This represented a 7.7% decrease compared to the 5,721 homes listed in June 2017, and a 17.2% decrease compared to May 2018 when 6,375 homes were listed.
The total number of homes listed for sale in June increased to 11,947, a 40.3% increase when compared to the same month last year, and a 5.8% increase when compared to May 2018. This is the highest total in the region since June 2015.
This ratio is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for a number of months.
For all property types, the ratio in June was 20%, which suggests a balanced market. When broken down by property types, the ratio was:
- 11.7% for detached homes
- 24.9 % for townhomes
- 33.4% for condominiums
Detached homes are entering a buyer’s market zone.
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,093,600 in June. This was 9.5% higher than June 2017 and virtually unchanged when compared to the previous month.
Rising interest rates, high prices and restrictive mortgage requirements, are factors that are dampening homebuyer demand.
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If you are planning on entering the real estate market with the present conditions, it is prudent to talk to an experienced real estate company, such as ours, to guide you effectively. Looking to buy or sell a home? Contact us by email or call us on 604 695 1000 or 604 913 1000.