We’ve finally had a chance to breathe! To say it’s been a busy few months for the Vancouver real estate market would be an understatement.
This time last year I said that it was one of the busiest starts to the year that we’ve seen in a long time. Well, I can say without a doubt that the first half of 2016 has been the busiest six months I’ve ever seen. Like last year; listings are up, sales are up, average prices are up and average “days on market” are down.
The year started with the second-busiest January on record as residential property sales in the region jumped nearly 32 per cent compared with the same January last year. The price of an average home across Metro Vancouver soared 28 per cent to just under $1.83 million from January 2015.
April came and went – it was the busiest month for home sales in Canadian history. As we entered the summer months, the BC Government started to announce some changes in an attempt to control the situation. Following a slight slowdown in May, June saw prices continuing to climb.
Shortly after the REBGV announced the average price of a detached home had increased 23 per cent and condos’ 18 per cent over the previous 12 months, the BC Government announced plans charge foreign buyers of residential property in the Vancouver area an extra 15 per cent tax. The newly introduced tax aim’s to slow the market was successful. “After several months of record-breaking sales activity, home buyer demand returned to more historically normal levels in July,” Dan Morrison, REBGV president explained.
As we enter September and what it is typically the busiest month of the year, I look at how the Vancouver real estate market is fairing.
East Vancouver Update
East Vancouver remains one of the strongest markets in Vancouver, even through August. The month typically has fewer listings and fewer sales. Looking at August’s figures; we saw a similar number of listings to the previous month across the entire market, but when looking at the detached market since the beginning of 2016 we’ve seen a huge jump in inventory.
The number of townhouses hitting the market has been steadily increasing month on month since January 2016, and August was no different. There were 49 townhouses on the market in August, compared to 36 in January.
It’s a different story for East Vancouver condos and apartments. The number of listings for this type of property is at its lowest since before January 2013. Across the market, we’re seeing the number of sales slightly down, which leads to a lower Sales to Active Ratio (compared to July). Detached home is at 12.6 per cent (a balanced market), Townhouses are at 37 percent and Condos are at 60 percent.
Vancouver West Update
The Vancouver West Real Estate Market Detached houses are showing a 9.2 per cent sales to the active ratio which is lower than the 15 per cent we saw in July and considerably lower than the 36 per cent we saw in March and April. Which indicates a buyer’s market – although with the recent foreign buyer’s tax coming into effect, it’s too early to make that call. The average price of a detached home in Vancouver West is $3.98m, 6.1 per cent down compared to July while the median price is $3.55M, a 1.4 per cent increase compared to July. The townhouse and half duplex market in Vancouver West is showing a 44 per cent sales ratio (the second lowest it’s been since January 2016) with the average price at $1.089M and the median price at $1.067m. The Vancouver West condo market is still high with a 44 per cent sales ratio; however, this is much lower than the highs of 85 per cent we saw in March. The average price is currently sitting at $795k while the median price is at $639k.