Home buyer demand stays below historical averages in August

Tuesday, September 4, 2018

The Metro Vancouver housing market continues to experience reduced demand across all housing types.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,929 in August 2018, a 36.6% decrease August 2017, and a 6.8% decline compared to July 2018.

Last month’s sales were 25.2% below the 10-year August sales average.

“Home buyers have been less active in recent months and we’re beginning to see prices edge down for all housing types as a result,” Phil Moore, REBGV president said. “Buyers today have more listings to choose from and face less competition than we’ve seen in our market in recent years.”

There were 3,881 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in August 2018. This represents an 8.6% decrease compared to August 2017 and an 18.6% decrease compared to July 2018.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,824, a 34.3% increase compared to August 2017 and a 2.6% decrease compared to July 2018.

The sales-to-active listings ratio for August 2018 is 16.3%. By housing type, the ratio is 9.2% for detached homes, 19.4% for townhomes, and 26.6% 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.

“With fewer buyers active in the market, benchmark prices across all three housing categories have declined for two consecutive months across the region,” Moore said.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,083,400. This represents a 4.1% increase over August 2017 and a 1.9% decrease since May 2018.

DETACHED

Sales of detached properties in August 2018 reached 567, a 37.1% decrease from August 2017. The benchmark price for detached properties is $1,561,000. This represents a 3.1% decrease from August 2017 and a 2.8% decrease since May 2018.

APARTMENT

Sales of apartment properties reached 1,025 in August 2018, 36.5% decrease compared to August 2017. The benchmark price of an apartment property is $695,500. This represents a 10.3% increase from August 2017 and a 1.6% decrease since May 2018.

ATTACHED

Attached property sales in August 2018 totalled 337, a 36.3% decrease compared to August 2017. The benchmark price of an attached unit is $846,100. This represents a 7.9% increase from August 2017 and a 0.8% decrease since May 2018.

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

Sincerely,

Janet