So the year end 2018 Real Estate Numbers are out now for Metro Vancouver and it was the lowest amount of sales annually in the last 18 years. Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market and what you should do as a buyer and a seller in 2019.
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 Friday.
The Real Estate Board of Greater Vancouver (REBGV) reports that total 2018 sales reached 24,619, a 31.6 per cent decrease from the 35,993 sales recorded in 2017, and a 38.4 per cent decrease compared to the 39,943 residential sales in 2016.
Last year’s sales total was 25 per cent below the region’s 10-year sales average.
“This past year has been a transition period for the Metro Vancouver housing market away from the sellers’ market conditions and well into a buyers market.”
“High home prices, rising interest rates and new mortgage requirements and taxes all contributed to the market conditions we saw in 2018.”
Home listings in Metro Vancouver reached 53,614 in 2018. This is a 1.9 per cent decrease compared to 54,655 homes listed in 2017 and a 6.9 per cent decrease compared to the 57,596 homes listed in 2016.
“The supply of homes for sale will be an important indicator to follow in 2019.
Many homes that failed to sell in 2018 will most likely try again in 2019. Also many projects are completing soon and investors who are strapped for cash may decide to cut ties, and unload these properties.
As the for the MLS® HPI composite benchmark price for all residential homes in Metro Vancouver ends the year at $1,032,400. This is a 2.7 per cent decrease compared to December 2017.
The benchmark price of detached homes in the region declined 7.8 per cent over the last 12 months and 7.3 per cent since June 2018. Apartment homes increased 0.6 per cent over the last 12 months and have declined 6.4 per cent since June 2018. The benchmark price for townhomes in Metro Vancouver have increased 1.3 per cent since December 2017 and have decreased 5.3 per cent over the last six months. Many analysis are predicting further price declines in 2019 but not a real estate crash.
So my advice to buyers, if you have the ability to buy in 2019 you can start to play hardball. Areas you where priced out of before are starting to open up again. So it is important to keep an eye on the market. Try your best to negotiate a good deal as there will be some market volatility.
For sellers, selling your home in a declining market is difficult. You can not expect to sell your home at year 2017 highs. You will need to be a price setter, price your home to sell at its market price and slightly lower than your competition. In a declining market the longer your home sits on the market the lower the your home price will become.
If you are thinking of selling your home in Vancouver, please watch my playlist over here
Question of the day, Would you consider selling your home in a declining market? Or wait for a recovery? Answer in the comments below. I will personally respond to all the comments myself.