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.