Residential Property Sales in Metro Vancouver 

Steady sales and diminished listings characterize 2017 for the Metro Vancouver housing market.

After reaching record levels in 2015 and 2016, Metro Vancouver home sales returned to more historically normal levels in 2017. Home listings, on the other hand, came in several thousand units below typical activity.

 

The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties reached 35,993 on the Multiple Listing Service® (MLS®) in 2017, a 9.9% decrease from the 39,943 sales recorded in 2016, and a 15% decrease over the 42,326 residential sales in 2015.

 

Last year’s sales total was, however, 9.7% above the 10-year sales average.

 

“It was a steady year for home sales across the region, led by condominium and townhome activity, and a quieter year for home listings,” Jill Oudil, REBGV president said. “Metro Vancouver home sales were the third highest we’ve seen in the past ten years while the home listings total was the second lowest on record for the same period.”

 

Home listings in Metro Vancouver reached 54,655 in 2017. This is a 5.1% decrease compared to the 57,596 homes listed in 2016 and a 4.5% decrease compared to the 57,249 homes listed in 2015.

 

Last year’s listings total was 4.4% below the 10-year listings average.

 

“Market activity differed considerably this year based on property type,” Oudil said. “Competition was intense in the condominium and townhome markets, with multiple offer situations becoming commonplace. The detached home market operated in a more balanced state, giving home buyers more selection to choose from and more time to make decisions.”

 

 

Source: Real Estate Board of Greater Vancouver


 

Residential Property Sales in Metro Vancouver

 

 

In December 2017, Metro Vancouver saw home sales activity exceed the 10-year December sales average by 7.5%. According to the REBGV, residential property sales totaled 2,016 in December 2017, a 17.6% increase from December 2016 (1,714 sales), and a 27.9% decrease from November 2017 (2,795). Townhouse and apartment sales accounted for a little over two-thirds of December’s sales.

 

The current benchmark price for all residential properties in Metro Vancouver is $1,050,300, and this is a 0.32% increase compared to November 2017 and a 15.9% increase from December 2016.

 

Detached properties saw 617 sales in December 2017, representing a 14% increase from December 2016. The benchmark price of a detached property as of December 2017 is $1,605,800; a 7.9% increase from last December. There were 1,028 apartment property sales in December 2017, representing a 12.3% increase from December 2016. The benchmark price of an apartment home as of December 2017 is $655,400; a 25.9% increase from the same time last year. 371 attached homes were sold in December 2017, representing a 43.8% increase from December 2016. The benchmark price of an attached home as of December 2017 is $803,700; an 18.5% increase from the same time last year.

 

“As we move into 2018, REALTORS® are working with their clients to help them understand how changing interest rates and the federal government’s new mortgage qualifications could affect their purchasing power,” Jill Oudil, REBGV president said. 

 

 


 

 

 

 

 

 

As of December 2017, the sales-to-active listings ratio by property type is 14.4% of detached homes, 38.8% for townhomes, and 59.6% for apartments. Across all property types, the sales-to-active listings ratio for December 2017 is 29%.

 

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.

 

“Only time will tell what impact these rules will have on the market. Home buyers today should get pre-approved before making an offer to ensure that your home buying goals align with your financial situation,” Oudil said.

 

 

 

 Source: Real Estate Board of Greater Vancouver


 

Sales down and values up in Lower Mainland commercial real estate


In Q3 2017, commercial real estate sales saw a decrease across all categories from the record-setting Q3 2016 levels. Based on Commercial Edge data (commercial real estate system operated by the Real Estate Board of Greater Vancouver), there were 715 sales in Q3 2016, compared to 652 sales in Q3 2017, representing an 8.8% decrease in the commercial real estate sale. These reductions were most pronounced in land and industrial sales.

 

“While there have been fewer commercial sales this year compared to 2016, activity remains in line with the long-term average for the region,” Jill Oudil, REBGV president said.

 

The total dollar value of Lower Mainland commercial real estate sales increased by 16.1% to $3.270 billion in Q3 2017 from $2.815 billion in Q3 2016.

 

On the pricing side, dollar values for commercial properties have climbed about 16% in the last year. This growth can be attributed, in part, to the extended economic growth we’ve been experiencing across a variety of sectors in our province.” said Oudil.

 



 Source: Real Estate Board of Greater Vancouver



Have Vancouver’s policies hindered rental housing more than helped?

Vancouver's stratospheric housing costs have driven the city to groundbreaking interventions to make more rentals available. Those policies include the city's recent efforts to extract hefty special additional fees from developers doing rental projects and a refusal in some zones to grant extra density for rental projects.Less...

Vancouver's stratospheric housing costs have driven the city to groundbreaking interventions to make more rentals available. Those policies include the city's recent efforts to extract hefty special additional fees from developers doing rental projects and a refusal in some zones to grant extra density for rental projects.

But some developers and housing advocates say the city has actually obstructed – not helped – efforts to build the kind of projects Vancouver says it wants, prompting at least a few to walk away from potential projects that would have produced hundreds of units.

 

For decades, the city has extracted money from condo developers for services such as parks, libraries, housing, heritage restoration and more through negotiations over what are called "community amenity contributions," or CACs. Those CACs, which get layered on over other fees all developers are required to pay, are applied only to rezonings and have generated tens of millions of dollars, especially in recent years.

 

Property owners developing rentals never used to pay those fees. In early decades, it was because no one was building rentals at all – condos were far more profitable. As of 2009, when the new Vision Vancouver council created incentives for rental construction, the city was giving developers breaks to build, not charging them extra. But in the past few years, as builders got more comfortable with the economics of building rental projects, developers started opting for rezonings to do all-rental towers. The city's real estate department began negotiating for CACs as land values soared.

Cressey, a company that started as a rental-only business and later became a condo developer, just got city approval this week for a rental project near Olympic Village, one that was included in a news release from the mayor's office, highlighting the 477 units of rental and social housing and noting, "Vancouver is doing more than any other city in Canada when it comes to housing."

That has included Canada's first sin tax for homes left vacant and a radical new housing policy emphasizing creating purpose-built apartments geared to rates local residents can afford.

Two weeks ago, Vancouver introduced a 10-year housing plan that envisions building 36,000 units of rental in the next 10 years – a target that was specifically designed to create more affordable housing in the city. City officials say they are trying their best to keep up with the changing economics of rental to ensure that the supply keeps coming, but acknowledge that it's a challenge.

Those forging ahead with projects say they are not sure whether they will continue in the future, asserting that rentals have become increasingly difficult to build because of a maze of contradictory demands and agonizingly slow permitting times.

 

 

Sourced/Edited from: The Globe and Mail

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.