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.