Sept 2018 Real Estate Report
So the Sept 2018 Real Estate Numbers are out now, and it was the worst September in 27 years. 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 Sept was 36.1 per cent below the 10-year Sept sales average and 43.5% decrease in sales for the same month last year.
The market in general has fewer active buyers, we’re seeing supply build up with every passing month because of the lack of sales. The total supply of listings have risen to levels we had 4 years ago. Also compared to last year Inventories in general it has increased 38.2 percent over all property types.
For all property types, the sales-to-active listings ratio for September 2018 is 12.2 per cent. By property type, the ratio is 7.8 per cent for detached homes, 14 per cent for townhomes, and 17.6 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.
“Metro Vancouver’s housing market has changed pace compared to the last few years. Our townhome and apartment markets are sitting in balanced market territory and our detached home market remains in a clear buyers’ market. If this trend continues for the next few months I can see condos and townhomes dropping to buyers territory as well.
Sales of detached properties in September 2018 reached 508, thats a 40.4 per cent decrease compared to the same month last year. The benchmark price in greater vancouver for detached properties is now at $1,540,900. This represents a 4.5 per cent decrease from September 2017 and a 3.4 per cent decrease over the last three months.
Sales of apartment properties reached 812 in September 2018, a 44 per cent decrease compared to the same month last year. The benchmark price of an apartment property is $687,300. This represents a 7.4 per cent increase from September 2017 and a 3.1 per cent decrease over the last three months.
Attached property sales in September 2018 totalled 275, a 46.9 per cent decrease compared to the 518 sales in September 2017. The benchmark price of an attached unit is $837,600. This represents a 6.4 per cent increase from September 2017 and a two 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 South had the biggest price change over the last 3 months from a benchmark price of $1.59
million with a decrease of 7.2%, Followed by Burnaby East with benchmark price of $1.25 million with 6.9% decrease and New Westminster with a benchmark price $1.12 million also at a 6% decrease.
For Condos the biggest price drop is was Whistler with a benchmark price of $521,000 at 10% decreases followed by Squamish with a benchmark price of $482,000 at 9% Decrease and Port Coquitlam with benchmark price of $457,000 with a 6.5% decrease.
For Townhomes, Vancouver West had a benchmark price of $1.23 Million with a 5.7% decrease over 3 months, followed by Vancouver East with a benchmark price of $874,000 with a 5.4% decrease followed by Port Coquitlam at $660,000 with a 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. This makes it much easier for you to spot a good investment opportunity.
In regards to selling your home, I noticed that 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, 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 buy I have linked up a playlist of helpful videos over here.