No market lasts forever. Last week, the Real Estate Board of Greater Vancouver (REBGV) released September’s stats and announced that home buyer demand has returned to more historically typical levels in Metro Vancouver* over the last three months, a 46.3% increase from the 1,595 sales recorded in September 2018, and a 4.6% increase from the 2,231 homes sold in August 2019.
“We’re seeing more balanced housing market conditions over the last three months compared to what we saw at this time last year,” Ashley Smith, REBGV president said. “Home buyers are more willing to make offers today, particularly in the townhome and apartment markets.
Royal LePage released its latest house price survey, reporting an overall decline in property values in Greater Vancouver. It showed a 5.2% drop in prices for housing in the region – comparing July, August, and September 2019 with the same three months in 2018.
A Market Shift
The quarterly trend shows that the rate of price decline has slowed and is expected to slow further as buyers see current prices as an opportunity to own property in one of Canada’s most beautiful and prosperous cities. In the third quarter, the aggregate price of a home in Greater Vancouver decreased 0.8% quarter-over-quarter, while the previous two quarters had quarterly decreases of 1.5%.
“Buyers are in control in the detached market,” said Royal LePage Sterling Realty general manager, Randy Ryalls, in a statement. “Sellers have to embrace the new market reality to get things done.”
But this won’t last forever.
“Higher inventory levels in some areas are offering buyers multiple options to choose from. They are not in a rush,” Ryalls added. However, “these days may be coming to an end.”
“Greater numbers of buyers are taking advantage of favourable market conditions and excellent mortgage rates, leading to what appears to be a solid footing in our price correction. Low unemployment, wage growth and pent-up demand are contributing to a change in market conditions that we should see emerge in the coming months.”
In fact, we have seen a few multiple offers of detached homes in North Vancouver over the last week, particularly in the Lynn Valley area.
Detached Property Report September 2019
Last month, North Vancouver had 59 sales, while there were 371 listed properties. The average price was $1,463,200, which is –7.5% from prices a year ago.
West Vancouver had 35 sales, 535 listed properties. The average price was $2,520,100, which is –9.3% from prices a year ago.
Condo Property Report September 2019
North Vancouver had 83 sales, while there were 342 listed condos, with an average price of $546,500, which is –7.6% from prices a year ago.
West Vancouver had 12 sales, 115 listed condos, with an average price of $1,021,200, which is –11.3% from prices a year ago.
Townhouse Property Report September 2019North Vancouver 21 sales, 115 listed townhouses, with an average price of $937,100, which is –8.3% from prices a year ago.
There is no information in West Vancouver for this segment of the market.
The shifting market and the differences between segments requires you to have a strategy, regardless if you are a seller or a buyer. Contact me if you are looking into selling or buying a home.