March 2019 Greater Vancouver Real Estate Report
 

The March 2019 Real Estate numbers are out now, and it was the lowest sales total since 1986.  Stay tuned as I explain what all the numbers mean coming up next. 


Last month’s sales were 46.3 per cent below the 10-year March sales average and was the lowest total for the month since 1986.  “Housing demand today isn’t aligning with our growing economy and low unemployment rates. The market trends we’re seeing are largely policy induced.  For three years, governments at all levels have imposed new taxes and borrowing requirements on to the housing market.”


The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 12,774, a 52.4 per cent increase compared to March 2018 (8,380) and a 10.2 per cent increase compared to February 2019 (11,590).  For all property types, the sales-to-active listings ratio for March 2019 is 13.5 per cent. By property type, the ratio is 9.4 per cent for detached homes, 15.9 per cent for townhomes, and 17.2 per cent for apartments.  Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.


The MLS® benchmark price for all residential properties in Metro Vancouver is currently $1,011,200. This represents a 7.7 per cent decrease from March 2018, and a 0.5 per cent decrease compared to February 2019. Sales of detached homes in March 2019 reached 529, a 26.7 per cent decrease from the 722 sales in March 2018. The benchmark price for a detached home is $1,437,100. This represents a 10.5 per cent decrease from March 2018, and a 0.4 per cent decrease compared to February 2019. Sales of apartment homes reached 873 in March 2019, a 35.3 per cent decrease compared to the 1,349 sales in March 2018. The benchmark price of an apartment property is $656,900. This represents a 5.9 per cent decrease from March 2018, and a 0.5 per cent decrease compared to February 2019. Attached home sales in March 2019 totalled 325, a 27.1 per cent decrease compared to the 446 sales in March 2018. The benchmark price of an attached home is $783,600. This represents a six per cent decrease from March 2018, and a 0.7 per cent decrease compared to February 2019.


So my advice to buyers, homes are still selling, just make sure you know the market values for the home type and area you are buying.  If a home is priced at its market value, most properties are selling and selling quickly.  For example last month in burnaby there were 43,  2 bedroom and 2 bath condos that have sold.  11 out of of the 43 condos were sold in under 10 days.


For sellers, in a downward market pricing your home becomes more and more vital.  Buyers are cautious and are really taking notice on home prices.  If you home is priced over its market value you will not get many viewings.  As a general guideline, you should be aiming for about 1 showing per day, and an offer by the end of the first week, if your home is priced correctly.      



Question of the day, Would you consider selling your home in a declining market?  Answer in the comments below.  I will personally respond to all the comments myself. 



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Nov 2018 Real Estate Report


So the Nov 2018 Real Estate Numbers are out now.  Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market and highlight which area you should think about buying. 


Last month’s sales in Nov was a 42 % decrease from the same month last year and 18 percent decrease from Oct 2018


 Home buyers have been taking a wait-and-see approach for most of 2018. This has allowed the number of homes available for sale in the region to return to more typical historical levels.  This activity is helping home prices edge down, across all property types, from the record highs we’ve experienced over the last year.


For new inventory hitting the market in November, sellers have also been holding off listing there home for-sale.  As the sellers are also taking the wait and see approach.   November new listings totalled 3461 which was a 15% decrease compared to Nov 2017, and 29% decrease from the previous month. Total inventory however is still 40 percent higher compared to the same month last year.


For all property types, the sales-to-active listings ratio for November 2018 is 13.1 per cent. By property type, the ratio is 8.9 per cent for detached homes, 14.7 per cent for townhomes, and 17.6 per cent for apartments


Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. 


Home prices have declined between four and seven per cent over the last six months depending on property type. We’ll watch conditions in the first quarter of 2019 to see if home buyer demand picks up ahead of the traditionally more active spring market.


Detached home sales in November 2018 reached 516, a 38.6 per cent decrease from the 841 detached sales recorded in November 2017. The benchmark price for detached homes is $1.5 million. This represents a 6.5 per cent decrease from November 2017 and a 1.6 per cent decrease compared to October 2018.


Apartment home sales reached 810 in November 2018, a 46.3 per cent decrease compared to the 1,508 sales in November 2017. The benchmark price of an apartment property is $667,000. This represents a 2.3 per cent increase from November 2017 and a 2.3 per cent decrease compared to October 2018.


Attached home sales in November 2018 totalled 282, a 36.8 per cent decrease compared to the 446 sales in November 2017. The benchmark price of an attached home is $818,000 This represents a 2.6 per cent increase from November 2017 and a 1.3 per cent decrease compared to October 2018.


So Which areas have dropped the most?  I usually look at 3 month trends.  


For detached homes, Ladner had the biggest price change over the last 3 months from a benchmark price of $949,000 with a decrease of 6%.  Followed by Pitt Meadows  with benchmark price of $894,000  with 5.0% decrease and Burnaby East with a benchmark price $1.2 Million with a 4.9% decrease.  


For Condos the biggest price drop is was Wistler with a benchmark price of $551,000 at 8% decreases followed by Coquitlam with a benchmark price of $522,000 at 5.5% Decrease and Burnaby South with benchmark price of $689,000 with a 4% decrease.  


For Townhomes, Vancouver East had a  benchmark price of $830,000 with a 7%  decrease over 3 months, followed by Tsawwassen with a benchmark price of $739,000 with a 6.9% decrease followed by Ladner at $769,000 with a 6% decrease.     


So if I was a buyer I would look into those areas.  If you are in the market to buy a home I always recommend following sold prices and the news.   This makes it much easier for you to spot a good investment opportunity.   Check out this detached home located in the Oakridge area.  It is a 65 x 120 lot asking $2.79 Million with a tax assessment value of $3.48 Million.  


Or this Old timer in Dunbar asking $2.28 Million which was sold in April of 2017 for $2.6 Million with a current tax assessment value of $2.59 Million.  


In regards to selling your home, sellers who are willing to price their homes at under its current market value are still getting a lot of interest.  I see some sellers testing the market listing their detached homes in the south burnaby area for 1 million dollars then immediately raising there asking price to market value.  


Question of the day, What will the Spring 2019 Real Estate Market look like?  Answer in the comments below.  I will personally respond to all the comments myself. 


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October 2018 Greater Vancouver Real Estate Report





So the Oct 2018 Real Estate Numbers are out now and they are really spooky.  Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market and highlight which area you should think about buying. 


Last month’s sales in Oct was 26.8 per cent below the 10-year Oct sales average and 34.9% decrease in sales for the same month last year.  This represents a 6 year low.  


 The supply of homes for sale today is the beginning to return to sales levels of about 4 years ago.  For home buyers this means you have more selection to choose from.  For sellers it means your home may face more competition from other properties on the market.  


Also compared to the same month last year Inventories have increased 42.1 percent over all property types.


For all property types, the sales-to-active listings ratio for OCT 2018 is 15.1 per cent. By property type, the ratio is 10.3 per cent for detached homes, 17.3 per cent for townhomes, and 20.6 per cent for condominiums.


Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. 


Home prices have come down between three and five per cent, depending on housing type, in our region since June.  This is providing a little relief for those looking to buy compared to the all-time highs we’ve experienced over the last year.


Sales of detached properties in OCT 2018 reached 637, thats a 32.2 per cent decrease compared to the same month last year.  The benchmark price in greater vancouver for detached properties is now at $1,524,000. This represents a 5.1 per cent decrease from Oct 2017 and a 3.9 per cent decrease over the last three months. 


Sales of apartment properties reached 985 in Oct 2018, a 35.7 per cent decrease compared to the same month last year. The benchmark price of an apartment property is $683,500. This represents a 5.8 per cent increase from Oct 2017 and a 3.1 per cent decrease over the last three months. 


Attached property sales in October 2018 totalled 344, a 37.5 per cent decrease compared to the 550 sales in Oct 2017. The benchmark price of an attached unit is $829,200. This represents a 4.4 per cent increase from Oct 2017 and a 2.8 per cent decrease over the last three months. 


So Which areas have dropped the most?  I usually look at 3 month trends.  


For detached homes, Burnaby East had the biggest price change over the last 3 months from a benchmark price of $1.25 million with a decrease of 5.6%.  Followed by West Vancouver  with benchmark price of $2.76 million with 5.4% decrease and Pitt Meadows with a benchmark price $908,000  with a 4.9% decrease.  


For Condos the biggest price drop is was West Vancouver with a benchmark price of $1.15 million at 6.3% decreases followed by Maple Ridge with a benchmark price of $363,000 at 5.7% Decrease and Pitt Meadows with benchmark price of $514,000 with a 5.1% decrease.  


For Townhomes, Vancouver East had a  benchmark price of $833.200 with a 6.7%  decrease over 3 months, followed by Port Coquitlam with a benchmark price of $646,400 with a 5.8% decrease followed by Vancouver West at $1.23 Million with a 4.4% decrease.     


So if I was a buyer I would look into those areas.  If you are in the market to buy a home I always recommend following sold prices and the news.   This makes it much easier for you to spot a good investment opportunity.   Like a property like this town house in the marpole area, 


Asking $1,679,000, Sold 31-Aug-2017 $1,800,000, Tax Assess $1,747,000.  1,767 sq ft. "Only 1 year old beautiful CORNER townhome built by Intracorp features 3 bedrooms & 2.5 bathrooms, A/C, direct access to 2 secured parking spaces, a beautifully landscaped yard." 


Or This Penthouse loft in Gastown 

Asking $1,139,000, with a Tax Assessed value of  $1,271,000. "It features Amazing views above historic Gastown, over looking the North Shore Mountains, water and Vancouver's beautiful Harbour" 


The presale market still seems to be hot right now, with projects continuing to be launched regardless of the slow down in the market.    West Bank Oakridge centre is getting ready to launch at the starting price is $2600 per square foot.  Richmond, Burnaby ,Surrey presale prices, are averaging about $1000 per square feet to $1200 per square feet.   If you are interested in the Richmond Paramount Project check out my last blog post. 


In regards to selling your home, sellers who are willing to price their homes at under its current market value get a lot of interest.  The buyers are out there, they are just all waiting for a modest price correction.  


Question of the day, Where do you think the prices are headed across greater vancouver?  Up or Down?  Answer in the comments below.  I will personally respond to all the comments myself. 

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Speculation and Vacancy tax - 


The details of the BC Speculation tax has just been released.  Find out what you need to know about the tax, coming up next.


Many British Columbians own secondary homes.  Watch this video as I go over the 8 things you should know about the Speculation and Vacancy Tax.


  1. 2nd Home must be rented for a period of a minimum 6 months per year.
  2. Airbnb deterrent - since most short term rentals are for periods of under 30 days this new tax basically eliminates Airbnb from most of BC.  
  3. Yearly declaration is necessary to avoid paying this tax on your primary residence.
  4. BC Islands are exempt - B.C.’s islands are not part of the taxable area unless accessible by bridge, and reserve lands, treaty lands and lands of a self-governing Indigenous nation are also not part of the taxable region,
  5. This tax does not stop Real Estate Speculation ?  So you are free to purchase real estate and flip it for a profit.  Example condo Pre-sales and assignment of contracts. 
  6. Municipalities have been rejected the option to opt of the speculation tax.  Meaning locations such as Kelowna that depend on Alberta buyers can see their real estate market suffer. 
  7. How is the Tax calculated - For a BC Resident or PR who lives in BC, with a high world wide income and paying very little BC Income tax will be charged 0.5 percent. For owners who are Canadian citizens and permanent residents who do not live in B.C., the tax is one per cent of assessed value, minus the credit — or $6,000 for an $800,000 Vancouver condo.  For owners who are foreign investors or part of satellite families, the tax is two per cent of assessed value, minus the credit — or $14,000 for the $800,000 condo.
  8. Condos with rental restrictions are exempted from this tax.  Their are many other exemptions which I will link up in the description. 


So there you have the 8 things you need to know about the speculation tax.   If you have any questions about this topic please feel free to reach out to me.   


Question of the day, what do you think of this bc speculation tax?  Should the Green Party and liberals vote it down?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


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So the August 2018 Real Estate Numbers are out now, Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market and highlight which area you should think about buying. 

Hi I am Alex Lam from Royal Pacific Realty, and  oh yeah this is Canadian content eh?  If this is the first time you are here, and you are interested in all things real estate in the Vancouver area, be sure to hit that subscribe button and that little bell.  I post new Videos every Tuesday and Friday.


Last month’s sales in August was 25.2 per cent below the 10-year Aug sales average.  The market in general has fewer active buyers, we’re seeing less upward pressure on home prices across the region. This is especially in the detached home market.   Demand in the townhome and condos are also down significantly from the years past.


Overall the residential active to sales ratio is at 16.3% which means that for every 100 properties forsale only 16 sell.  Broken down by property type Detached homes across metro vancouver at are 9.2% active to sales, Condos are at 26.6% and townhomes are at 19.4%.  Prices are usually start dropping when the active to sales ratio dips below 12 % mark for sustained periods of time. 


Inventories in general have increased 24.5% percent over all property types compared to last year.  That is a big increase in inventory. Broken down by property type we see detached homes with a inventory increase of 7%, Condos at 62% increase, and Townhomes with a 44% inventory increase. 


 Speaking to Most buyers and sellers,  Sellers will only sell if they really need to, but most are pretty secure with their financial situation. And Buyers will only buy when the price is right.  Some sellers will intentionally lower their price to look very attractive to get alot of viewings, but when a buyer writes an offer, they will not accept anything lower than asking price.  This seems deceptive but it doesn’t break any rules.  So lots of funny things are happening out there, so be careful.     


Looking at the home price index across metro vancouver, detached homes are at a benchmark price $1,561,000 million which is a 2.8% decrease from last month.  Condo benchmark is at $695,000 which is a 1.6%  decrease in price since last month.  And townhomes are at $846,000 with is a 0.8%  decrease compared to last month.  


So do I see a trend here?  Which areas have dropped the most?  The best thing to do is to look at 3 month price trends, this way you can firmly see a solid direction.  


For detached homes, West Vancouver had the biggest price change over the last 3 months from a benchmark price of $2.8 million

 million with a decrease of 6.2%, Followed by Squamish with benchmark price of 1 million with 5.7% decrease and North Burnaby with a benchmark price 1.5 million

also at 4.7% decrease.  


For Condos the biggest price drop is again was West Vancouver with a benchmark price of 1.19 million at 7.1% decreases followed by Pitt Meadows with a benchmark price of $527,000

at 3.8% and Maple ridge $374,000 with a 3.1% decrease.  


For Townhomes, Vancouver East had a  benchmark price of $894,000 with a 3.4 %  decrease over 3 months, followed by Port Coquitlam with a benchmark price of $667,000 with a 3.2% decrease followed by Vancouver West at 1.26 million with a 2.8% decrease.     


So if I was a buyer I would look in those areas.  The market is definitely changing and to the buyers advantage.   Prices have dropped in most areas but not very much.  Please view the description to download the full stats package.  Its always a good idea to know whats going on with the market.


Question of the day, Would do you think the prices are heading the greater vancouver market?  Up or Down?  Answer in the comments below.  I will make it an effort to personally respond to all the comments.   If you are in the market to sell or buy I have linked up a playlist of helpful tips in the description below.


If you like this video please give it a thumbs up and subscribe. I will be posting new market update videos every Friday for different areas across metro vancouver, and educational real estate tips every Tuesday.  This is Alex Lam from Vancouver and thanks for watching this video eh??   


Download the full Stats Package Here

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Yesterday the Bank of Canada announced that interest rates will go up another quarter percent and its the forth time they had increased it this year with another potential 3 increases for 2018. The dates are in Sept 5, Oct, 24 and December 5. As you can see with every increase they did it was a quarter percent. Here is the interest rate history from the Bank of Canada website. The BOC mentioned that they want to increase the rates up to “NORMAL LEVELS”, so what does that mean? My best guess is that the BOC would eventually increase interest rates up to what it was when we had our two most recent financial downturns in 2001 and 2008. So rates can go up as high as 4.0 % to 5.5 %


So what is a a quarter percent in real dollars? A quarter percent increase on every $100,000 borrowed is $20 extra per month. With a potential 3 extra increases that can be an extra $60 per month. Thats like a gym like a gym membership. Now things are starting to add up especially since most home owners owe more than $100,000. If you are a homeowner and you are on a variable rate mortgage you should begin to think about locking in. If you are a home buyer expect qualifying for a mortgage to be just a bit more difficult again. The Bank of Canada Stress test rate should also go up by another quarter point. So if you make a $100,000 per year you should only qualify for about $390,000 thats about a $10,000 decrease in purchasing power.

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You’ve probably heard the news in the headlines already. Detached home sales are down by a whopping 44% in Vancouver. The 14% sales ratio we have puts us firmly in a buyer’s market when it comes to these homes. We’re seeing the exact opposite occur in the condo market. To learn more about both, watch this short video.
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A Snapshot of Our Current Market and a Look at Our Recent Tax Changes 

Today I want to recap our February 2018 market and share the latest on what’s happening with our BC budget. Overall, last month’s sales across Metro Vancouver were down 14.4% below the 10-year February sales average. The active-to-sales ratio was 14% for detached homes, 37.6% for townhomes, and 59.7% for condominiums. Because of the new tax changes introduced by the BC government, these statistics could look quite different for the rest of 2018. To find out more, watch my latest video.
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Now that fall is upon us, I’d like to take a look back at how our Central Vancouver real estate market fared over the month of September.

To start off, the detached housing market had a 14% sales-to-actives ratio. This is about 1% less than last month.

The reason this market hasn’t seen any increase in prices or activity is that total listing inventory has increased 36% since August. These factors are a strong indicator that we’re in a buyer’s market.

Let’s turn our attention to the condominium market. In that market, there was a 59% sales-to-actives ratio. This is about 11% less than last month.

“The condo market is still red hot.”

The condo market is still red hot. Inventory is about 29% lower than last year and there are a lot of multiple offer situations taking place.

With all of this being said, I’m starting to notice my clients looking to sell their condos and buy detached homes instead.

Condo prices can only rise so much and the detached housing market is experiencing a temporary slowdown, so this is a great strategy.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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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.