Home buyers and sellers face changing market dynamics
Metro Vancouver* home sales dipped below the 10-year monthly sales average last month. This is the first time this has occurred in the region since May 2014.
Metro Vancouver home sales totalled 2,253 in September 2016, a -32.6% from the 3,345 sales recorded in September 2015 and a -9.5% compared to August 2016 when 2,489 homes sold.
Last month’s sales were 9.6% below the 10-year sales average for the month.
“Supply and demand conditions differ today depending on property type,” Dan Morrison, REBGV president said. “We’re seeing more demand for condominiums and townhomes today than in the detached home market.”
New listings for detached, attached and apartment properties in Metro Vancouver totalled 4,799 in September 2016. This represents a decrease of 1% compared to the 4,846 units listed in September 2015 and an 11.8% increase compared to August 2016 when 4,293 properties were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,354, a 13.4% decline compared to September 2015 (10,805) and a 10% increase compared to August 2016 (8,506).
The sales-to-active listings ratio for September 2016 is 24.1%. This is the lowest this ratio has been since February 2015. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark, while home prices often experience upward pressure when it reaches the 20 to 22% range in a particular community for a sustained period.
“Changing market conditions are easing upward pressure on home prices in our region,” Morrison said. “There’s uncertainty in the market at the moment and home buyers and sellers are having difficulty establishing price as a result. To help you understand the factors affecting prices, it’s important to talk with a REALTOR®.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $931,900. This represents a 28.9% increase compared to September 2015 and a 0.1% decline compared to August 2016.
Sales of detached properties in September 2016 reached 666, a decrease of 47.6% from the 1,272 detached sales recorded in September 2015. The benchmark price for detached properties is $1,579,400. This represents a 33.7% increase compared to September 2015 and a 0.1 per cent increase compared to August 2016.
Sales of apartment properties reached 1,218 in September 2016, a decrease of 20.3% compared to the 1,529 sales in September 2015.The benchmark price of an apartment property is $511,800. This represents a 23.5% increase compared to September 2015 and a 0.5% decline compared to August 2016.
Attached property sales in September 2016 totalled 369, a decrease of 32.2% compared to the 544 sales in September 2015. The benchmark price of an attached unit is $677,000. This represents a 29.1% increase compared to September 2015 and a 0.1% decline compared to August 2016.