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.