Metro Vancouver home sales down across all property types

Thursday, January 3, 2019

Metro Vancouver* home sales in 2018 were the lowest annual total in the region since 2000.

The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties reached 24,619 on the Multiple Listing Service® (MLS®) in 2018, a 31.6% decrease from 2017, and a 38.4% decrease compared to 2016.

Last year’s sales total was 25% below the region’s 10-year sales average.

“This past year has been a transition period for the Metro Vancouver housing market away from the sellers’ market conditions we experienced in previous years,” Phil Moore, REBGV president said. “High home prices, rising interest rates and new mortgage requirements and taxes all contributed to the market conditions we saw in 2018.”

Home listings in Metro Vancouver reached 53,614 in 2018. This is a 1.9% decrease compared to 2017 and a 6.9% decrease compared to 2016.

“The supply of homes for sale will be an important indicator to follow in 2019. We’ve had record building activity in recent years and many projects will complete soon. This will provide additional housing options for home buyers across the region,” Moore said.

The MLS® HPI composite benchmark price for all residential homes in Metro Vancouver ends the year at $1,032,400. This is a 2.7% decrease compared to December 2017.

“As the total supply of homes for sale began to accumulate in the spring, we began to see downward pressure on prices across all home types throughout the latter half of the year,” Moore said.

The benchmark price of detached homes in the region declined 7.8% over the last 12 months and 7.3% since June 2018.

Apartment homes increased 0.6% over the last 12 months and have declined 6.4% since June 2018. The benchmark price for townhomes in Metro Vancouver have increased 1.3% since December 2017 and have decreased 5.3% over the last six months.

December summary

REBGV reports that residential home sales in the region totalled 1,072 in December 2018, a 46.8% decrease from December 2017, and a 33.3% decrease from November 2018.

Last month’s sales were 43.3% below the 10-year December sales average.

There were 1,407 detached, attached and apartment homes newly listed for sale on the MLS® in Metro Vancouver in December 2018. This represents a 25.6% decrease compared to December 2017 and a 59.3% decrease compared to November 2018.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,275, a 47.7% increase compared to December 2017 and a 16.5% decrease compared to November 2018.

For all property types, the sales-to-active listings ratio for December 2018 is 10.4%. By property type, the ratio is 7.1% for detached homes, 12% for townhomes, and 14.2% for apartments.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.

DETACHED

Sales of detached homes in December 2018 reached 348, a 43.6% decrease from December 2017. The benchmark price for a detached home is $1,479,000. This represents a 7.8% decrease from December 2017 and a 1.4% decrease compared to November 2018.

APARTMENT

Sales of apartment homes reached 535 in December 2018, a 34% decrease compared to December 2017. The benchmark price of an apartment home is $664,100. This represents a 0.6% increase from December 2017 and a 0.6% decrease compared to November 2018.

ATTACHED

Attached home sales in December 2018 totalled 189, a 49.1% decrease compared to December 2017. The benchmark price of an attached home is $809,700. This represents a 1.3% increase from December 2017 and a 1.1% decrease compared to November 2018.

- For more information from the Real Estate Board of Greater Vancouver, click here.

Sincerely,

Janet