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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