Home Sales Decline Below Long-Term Averages in 2019 Despite Increased Demand to End the Year

Friday, January 03, 2020

The Metro Vancouver housing market experienced below average sales activity and moderate price declines in 2019.

The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment homes reached 25,351 in 2019, a three per cent increase from 2018, and a 29.6% decrease over 2017.

Last year’s sales total was 20.3% below the region’s 10-year sales average.

"We didn’t see typical seasonal patterns in 2019. Home buyer demand was quieter in the normally busy spring season and it picked up in the second half of the year. In terms of home values, prices dipped between two and four per cent across the region last year depending on property type." Ashley Smith, REBGV president.

Home listings on the Multiple Listing Service® (MLS®) in Metro Vancouver reached 51,918 in 2019. This is a 3.2% decrease compared to 2018 and a 5% decrease compared to 2017.

Last year’s listings total was 7.6% below the 10-year average.

“Home buyer confidence was a factor throughout the year. In the first quarter, many prospective buyers were in a holding pattern, waiting to see how prices would react to the mortgage stress test, new taxes, and other policy changes,” Smith said. “Confidence started to return in the summer, and we saw above average sales in the final quarter of 2019.”

The MLS® HPI composite benchmark price for all residential properties in Metro Vancouver ends the year at $1,001,000. This is a 3.1% decrease compared to December 2018.

The benchmark price of apartments decreased 2.7% in the region last year. Townhomes decreased 2.4% and detached homes decreased four per cent.

REBGV reports that residential home sales in the region totalled 2,016 in December 2019, an 88.1% increase from December 2018, and a 19.3% decrease from November 2019.

Last month’s sales were 9.5% above the 10-year December sales average.

There were 1,588 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in December 2019. This represents a 12.9% increase compared to December 2018 and a 46.8% decrease compared to November 2019.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,603, a 16.3% decrease compared to December 2018 and a 20.1% decrease compared to November 2019.

For all property types, the sales-to-active listings ratio for December 2019 is 23.4%. By property type, the ratio is 15.2% for detached homes, 25.7% for townhomes, and 32.5% for apartments.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12% 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 2019 reached 599, a 72.1% increase from December 2018. The benchmark price for detached properties is $1,423,500. This represents a 4% decrease from December 2018, and a 0.6% increase compared to November 2019.

APARTMENT

Sales of apartment homes reached 1,053 in December 2019, a 96.8% increase compared to December 2018. The benchmark price of an apartment property is $656,700. This represents a 2.7% decrease from December 2018, and a 0.8% increase compared to November 2019.

ATTACHED

Attached home sales in December 2019 totalled 364, a 92.6% increase compared to December 2018. The benchmark price of an attached home is $778,400. This represents a 2.4% decrease from December 2018, and a 0.7% increase compared to November 2019.

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

Sincerely,

Janet