Residential Property Sales in Metro Vancouver 

 

Metro Vancouver continues to experience above-average demand and below-average supply.

In November 2017, Metro Vancouver saw home sales activity exceed the 10-year October sales average by 17%. According to the REBGV, residential property sales totaled 2,795 in November 2017, a 26.2% increase from November 2016 (2,214 sales), and a 7.5% increase from October 2017 (3,022). Townhouse and apartment sales accounted for a little over two-thirds of October’s sales.

 

The current benchmark price for all residential properties in Metro Vancouver is $1,046,900, and this is a 0.4% increase compared to October 2017 and a 14% increase from November 2016.

 

Detached properties saw 841 sales in October 2017, representing a 31.8% increase from November 2016. The benchmark price of a detached property as of November 2017 is $1,608,000; a 6.1% increase from last November. There were 1,508 apartment property sales in November 2017, representing a 25.7% increase from November 2016. The benchmark price of an apartment home as of November 2017 is $648,000; a 23.9% increase from the same time last year.  446 attached homes were sold in November 2017, representing an 18.5% increase from November 2016. The benchmark price of an attached home as of November 2017 is $805,200; a 17.9% increase from the same time last year.

 

“While we’re seeing more listings enter the market today than we saw at this time last year, we have a long way to go before our home listing inventory rises back to more historically typical levels,” Oudil said.  

 

 

 

 

As of November 2017, the sales-to-active listings ratio by property type is 15.9% of detached homes, 36.4% for townhomes, and 67.8% for apartments. Across all property types, the sales-to-active listings ratio for November 2017 is 32%, a decrease from 33.1% in October 2017, and an increase from 26.4% in November 2016.

 

Analysts say that home prices face downward pressure when the sales-to-active listings ratio is 12% or lower for a sustained period, while home prices face upward pressure when the ratio is 20% or higher for a sustained period.

 

“We’re seeing steady demand in today’s market. Home buyer activity is operating above our long-term averages, particularly in our townhome and condominium markets,” Jill Oudil, REBGV president said.





Source: Real Estate Board of Greater Vancouver


 

Strong Economy Versus Housing Headwinds

 

 

 

 Multiple Listing Service® (MLS®) residential sales in the province are estimated to reach 102,350 units this year, a decline of nearly 9% from a record 112,200 unit sales in 2016. MLS® residential sales are forecast to decrease a further 10% to 91,750 units in 2018. Housing demand is expected to remain above the ten-year average of approximately 85,000 units through 2018. The BC housing market is being supported by a strong-performing economy and corresponding employment growth, as well as associated consumer confidence.

 

The BC economy is forecast to expand by 3.8% this year, the fourth consecutive year of 3% or more real GDP growth. The cumulative effect has fueled employment growth to its highest performance in almost 20 years. Since January 2015, the province has added nearly 180,000 jobs. This has bolstered consumer confidence, with retail sales in BC expected to increase by an extraordinary 9% this year.

 

 

 

 

 

 

While provincial economic conditions appear to be on a sound footing, the housing market will face increasing headwinds in 2018. A rising interest rate environment will undoubtedly erode affordability in the new year, while stricter mortgage qualifications for conventional mortgagors will reduce their purchasing power by up to 20%. Also, the high level of net migration from other provinces, especially Alberta, over the past few years is expected to wane, which will slow overall population growth. These factors will likely be exacerbated by home prices that are already elevated after several years of significant rates of growth.

 

 

The supply of homes for sale is now trending at or near decade lows in most BC regions. The imbalance between supply and demand has been mostly responsible for rapidly rising home prices. While slowing demand will help alleviate these conditions, the expansion of the housing stock is necessary to delay the ascent of home prices. There are now over 56,000 units under construction in the province, up 54% over the last 24 months. Many of these units will be completed in 2018, adding much-needed supply to the market. The combination of slowing housing demand and a rising inventory of homes for sale is expected to move the market toward stable conditions next year, and lead to less upward pressure on home prices.

 

 

 

Source: British Columbia Real Estate Association


Vancouver Empty Home Tax

In response to a rental vacancy rate of less than one per cent and a significant number of empty homes, the City of Vancouver brought in an Empty Homes Tax effective January 1, 2017.More...

  

 

 

In response to a rental vacancy rate of less than one per cent and a significant number of empty homes, the City of Vancouver brought in an Empty Homes Tax effective January 1, 2017.

“Vancouver is in a rental housing crisis. The city won’t sit on the sidelines while over 20,000 empty and under-occupied properties hold back homes for renters struggling to find an affordable and secure place to live,” says Mayor Gregor Robertson.

 

The city estimates the tax will raise $2.2 million per year when fully implemented. Initial costs to implement the tax are estimated at $4.7 million over three years. Ongoing operating expenses are expected to total $1.5 million annually beginning in 2018.

How much is the tax?

The tax rate is 1 per cent of assessed value in 2017. Owners of non-principal residences unoccupied for six months or more each year will pay this tax.

Who won’t pay the tax?

The tax will not apply to:

  • Vancouver homeowners, including snowbirds;
  • owners of principal residences;
  • a house with a basement suite or a laneway house if one of the units is occupied; and
  • owners of properties rented long-term (with a tenancy agreement), or for at least 30 days in a row for a minimum of six months or a total of 180 days a year. For example, a homeowner renting a property for six 30-day terms is exempt from the tax, even if those six 30-day terms are not consecutive.

What is a principal residence?

The city defines principal residence as:

 

“The usual place where an individual lives, makes his or her home and conducts his or her daily affairs, including, paying bills and receiving mail, and is the residential address used on documentation related to billing, identification, taxation and insurance purposes, including income tax returns, medical services plan documents, driver’s licences, personal identification, vehicle registration and utility bills.”

Important deadlines

Property status declaration: owners will receive notification to complete a property status declaration with their advance property tax notice issued in December each year.

 

  • February 2, 2018, is the deadline for all homeowners to complete their first property status declaration stating whether their home is a principal residence or empty.
    • The declaration will have four categories:
    • Principal residence.
    • Tenanted.
    • Eligible for exemption.
    • Vacant property.
    • A property owner who doesn’t complete their declaration will have their home deemed empty and will pay the one per cent tax. All declarations will be audited.

  • April 16, 2018: Empty Homes Tax payment due.

  • December 31, 2018: unpaid tax added to the property tax bill.
 

Does the Empty Homes Tax apply to you?

Use this tool to find out.

 
 

New Vancouver Housing Strategy Approved

Over 120 actions to address speculation, expand communities in single-family neighbourhoods, and increase supply of rental housing across Vancouver.More...

Over 120 actions to address speculation, expand communities in single-family neighbourhoods, and increase the supply of rental housing across Vancouver.

 

To change the future of housing in Vancouver and keep young workers and families in the city, Vancouver City Council has approved its new Housing Vancouver strategy and three-year action plan today, a bold response to address Vancouver's housing crisis.

 

"Our newly approved Housing Vancouver strategy is a bold, forward-thinking plan that was directly informed by what we heard from local residents: we need urgent action now to ramp up not just the supply of housing, but the right kind of supply," said Mayor Gregor Robertson. "Housing Vancouver builds on measures the City is already taking that are the first of their kind in Canada-the empty homes tax, temporary modular housing for our most vulnerable residents, and regulating short-term rentals-and includes strategies that go after real estate speculation, offer more protection for renters and will transform single-family neighbourhoods across the city. This comprehensive approach will help us maintain Vancouver's diversity and vibrancy, and create more affordable housing options for young people, growing families, seniors and our most vulnerable residents."

 

"The current state of housing in Vancouver is jeopardizing our city's diversity, sense of community, and longevity. Our new strategy is ambitions, and will see many changes across the city," said Gil Kelley, General Manager, Planning, Urban Design, and Sustainability. "With an overall goal to provide residents with housing they need and can afford, Housing Vancouver is a culmination of fourteen months' of research and engagement with local, national and international housing experts as well as over 10,000 residents of Vancouver. Our three-year action plan ensures that action continues quickly to guarantee a future for the people who live and work in Vancouver."

 

Priority Actions

With over 120 actions, the three-year action plan directs how the City will move forward to create more livable and affordable housing for Vancouver residents. The City will address the housing crisis by undertaking 10 priority actions: Click here to see the City of Vancouver website.

 

Over the next ten years

These actions will help maintain a diverse, vibrant and connected community of residents in Vancouver and ensure the city's housing stock accommodates a broad range of incomes, occupations, and households at all life stages with a goal of 72,000 new homes to be delivered over the next ten years: Click here to see the City of Vancouver website.

 

 

Source: City of Vancouver

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.