Residential Property Sales in Metro Vancouver
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,833 in May 2018, a 35.1% decrease from the 4,364 sales recorded in May 2017, and a 9.8% increase compared to April 2018 when 2,579 homes sold. Last month’s sales were 19.3% below the 10-year May sales average.
“With fewer homes selling today compared to recent years, the number of homes available for sale is rising,” said REBGV president Phil Moore. “The selection of homes for sale in Metro Vancouver has risen to the highest levels we’ve seen in the last two years, yet supply is still below our long-term historical averages.”
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 11,292, a 38.2% increase compared to May 2017 (8,168) and a 15% increase compared to April 2018 (9,822). The total number of listings available today is 17.2% below the 10-year May average.
“Home buyers have more breathing room this spring. They have more selection to choose from and less demand to compete against,” said Moore in May.
The benchmark price for all residential properties in Metro Vancouver as of May 2018 is $1,094,000; an 11.5% increase from May 2017, and a 0.2% increase from April 2018.
Detached properties saw 926 sales in May 2018, representing a 40.2% decrease from May 2017 (1,548). The benchmark price of a detached property as of May 2018 is $1,608,000; a 2.4% increase from last May. There were 1,431 apartment property sales in May 2018, representing a 29.3% decrease from the 2,025 sales in May 2017. The benchmark price of an apartment property as of May 2018 is $701,700; a 20.2% increase from last May. 476 attached properties were sold in May 2018, representing a 39.8% decrease from the 791 sales in May 2017. The benchmark price of an attached home as of May 2018 is $859,500; a 16% increase from May last year.
For all property types, the sales-to-active listings ratio for May 2018 is 25.1%. By property type, the ratio is 14.7% for detached homes, 30.8% for townhomes, and 41.7% for condominiums.
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.
“For home sellers to be successful in today’s market, it’s important to price your property competitively given the shifting dynamics we’re experiencing,” Moore said. “It’s also important to work with your local Realtor to better understand these changing conditions.”
Sourced and edited from: Real Estate Board of Greater Vancouver
Optim Pacific Realty
Happy Optim Pacific Realty Clients
Property Address: 5665 Boundary Road, Vancouver
This Spring, one of Optim Pacific’s realtors entered into an agreement to help sell a client’s apartment at the Wall Centre Central Park in Vancouver. Originally obtained while the building was still in construction, the unit was occupied by a young couple and their two lively young children.
About two years later, the family decided it was time to sell the condo. However, as any young parent will know, ‘young energetic children’ and ‘brand-new condo’ don’t usually match very well: playtime and loving wear-and-tear had taken its toll, even resulting in damaged walls and floors. It was clear that simple property staging was not going to be enough to sell this property.
Fortunately, our real estate professional’s extensive construction knowledge allowed her to quickly identify and deal with the work the condo required without requiring the owners to move out. The family was relieved at not having to move out while work was being done, as that would have meant having to move in and out twice! After the work was completed, the condo was staged, and was then put up for sale.
Soon after, an offer was received. With her 10+ years of experience as a Vancouver realtor, our professional was able to negotiate the offer into a great deal for our client. The client was surprised! Not only had our professional helped him with his condo’s preparation, she had also managed to negotiate a record price for similar properties in the area! The offer was accepted, and the property was sold at the record price. Another completed deal, and another happy Optim Pacific client.
Optim Pacific prides itself in having real estate professionals who are experienced, reliable, and who are also expert negotiators. Our professionals also have a thorough and comprehensive understanding of construction and home improvements, allowing them to rapidly identify and address issues with any property.
To learn more about our services, give us a call at 604-563-9380 and see what we can do for you!
Important Tax Information for Buyers & Sellers in BC
The government of British Columbia has implemented the following taxes, which you should take into account when considering to buy or sell property.
Property Transfer Tax
- 1% on the first $200,000
- 2% on fair market value between $200,000 and $2,000,000.
- 3% on fair market value greater than $2,000,000
- (For Residential Properties Only) A further 2% on fair market value greater than $3,000,000.
Additional Property Transfer Tax (Foreign Buyer’s Tax)
- If registered on or before February 20, 2018, and is within the Greater Vancouver Regional District, there is an additional tax of 15% of fair market value.
- If registered on or after February 21, 2018, and is within the following areas, there is an additional tax of 20% of fair market value:
Speculation Tax (Vacancy Tax)
Primary residences will be exempt from this tax. Other residential properties must be rented out for at least 3 months to quality for an exemption in 2018. Starting in 2019, residential properties must be rented out for at least 6 months to quality for the exemption.
In 2018, properties subject to the tax will be taxed 0.5% of the property’s value.
- 2% for foreign investors and satellite families;
- 1% for Canadian citizens and permanent residents who do not live in BC;
- 0.5% for British Columbians who are Canadian citizens or permanent residents.
Additional School Tax
Note: The following Additional School Tax rates are to be in effect starting in 2019.
- Residential properties (and residential portions for mixed-use properties) will be taxed 0.2% on their assessed value between $3,000,000 and $4,000,000
- Residential properties (and residential portions for mixed-use properties) will be taxed 0.4% on their assessed value over $4,000,000
Should you have any questions or doubts as to how to proceed with your real estate plans because of these factors, get in contact with one of our professionals, and they would be happy to discuss your goals with you.
Source: Government of British Columbiahttps://www2.gov.bc.ca/gov/content/taxes/tax-changes/budget-changes#property