Residential Property Sales in Metro Vancouver
VANCOUVER, BC – June 4, 2019 Monthly Metro Vancouver home sales eclipsed 2,000 for the first time this year in May, although home buyer demand remains below historical averages.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,638 in May 2019, a 44.2 percent increase from the 1,829 homes sold in April 2019. The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is currently $1,006,400. This represents a 3.4 percent decrease over the past six months, and a 0.4 percent decrease compared to April 2019.
Sales of detached homes in May 2019 reached 913, the benchmark price for detached properties is $1,421,900.
Attached home sales in May 2019 totalled 419, the benchmark price of an attached unit is $779,400.
Sales of apartment homes in May 2019 reached 1246, the benchmark price of an apartment property is $664,200.
“High home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today,” Ashley Smith, REBGV president said. “Whether you’re a buyer looking to make an offer or a seller looking to list your home, getting your pricing right is the key in today’s market. To be competitive, it’s important to work with your local REALTOR® to assess and understand the latest trends in your neighbourhood and property type of choice.”
There were 5,861 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver last month. This represents a 2.1 percent increase compared to April 2019 when 5,742 homes were listed. The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 14,685, a 2.3 percent increase compared to April 2019 (14,357). This is the highest number of homes listed for sale since September 2014 (14,832).
For all property types, the sales-to-active listings ratio for May 2019 is 18 percent.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 percent for a sustained period, while home prices often experience upward pressure when it surpasses 20 percent over several months.
Sourced and edited from: Real Estate Board of Greater Vancouver
Commercial Property Sales in Metro Vancouver
Demand for commercial real estate declines in 2018
VANCOUVER, BC – March 20, 2019 The commercial real estate market in the Lower Mainland saw fewer sales and lower dollar volumes in 2018 compared to recent years.
There were 2,266 commercial real estate sales in the Lower Mainland in 2018, a 13.6 percent decrease from 2,624 sales in 2017, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV).
The total dollar value of commercial real estate sales in the Lower Mainland reached $15.622 billion in 2018, a 5.2 percent decrease from $16.483 billion in 2017.
“Demand in the Lower Mainland’s commercial real estate market changed pace in 2018,” said Ashley Smith, REBGV president. “While dollar volumes remained up near the highs we’ve experienced in recent years, we’ve seen reduced demand in line with slower economic growth and rising interest rates.”
Source: The Real Estate Board of Greater Vancouver
Affordability Continues to Weigh on Housing Demand
Vancouver, BC – May 14, 2019 The British Columbia Real Estate Association (BCREA) reports that a total of 6,652 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in April, a decline of 18.9 percent from the same month last year. The average MLS® residential price in the province was $685,304, a decline of 6.2 per cent from April 2018. Total sales dollar volume was $4.6 billion, a 23.9 per cent decline from the same month last year.
“BC home sales were essentially unchanged from March on a seasonally adjusted basis,” said BCREA Chief Economist Cameron Muir. “Prospective home buyers continue to grapple with the decline in their purchasing power caused by federal government changes to mortgage policy.”
Total MLS® residential active listings increased 33.6 percent to 38,672 units compared to the same month last year. The ratio of sales to active residential listings declined from 28.4 percent to 17.2 percent over the same period.
Year-to-date, BC residential sales dollar volume was down 29.8 percent to $13.9 billion, compared with the same period in 2018. Residential unit sales decreased 24.5 percent to 20,479 units, while the average MLS® residential price was down 7 percent to $680,671.
The purpose of the stress test is to determine whether a homebuyer would be able to afford their principal and interest payments even if the interest rates increase in the future.
This stress test would use either the 5-year benchmark rate published by the Bank of Canada (5.34% at the time of writing) or the customer's contracted mortgage interest rate plus 2%, whichever of the two is greater.
Mortgage Rate Forecast
The once bright outlook for the Canadian economy darkened toward the end of 2018 amidst disruptions in Alberta oil production and a policy-induced slowdown in the Canadian housing market. This slowdown, along with global economic growth concerns, prompted a dramatic revision in market expectations for future Bank of Canada rate tightening. As a result, key benchmarks for bank borrowing costs plummeted, reversing course after a year of steady increases.
Source and edited from: British Columbia Real Estate Association