The April 2019 Real Estate numbers are now, and it has been the lowest sales to date since 1986. The trend of reduced demand and increased supply continues to be the trend across Metro Vancouver’s housing market. Decreased demand continues to allow the supply of homes for sale to accumulate across the Metro Vancouver housing market causing the lowest sales unseen in 34 years.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,829 in April 2019, that is a 29.1 per cent decrease from the 2,579 sales recorded in April 2018, and a 5.9 per cent increase from the 1,727 homes sold in March 2019.
Government policy continues to hinder home sale activity. The federal government’s mortgage stress test has reduced buyers’ purchasing power by about 20 per cent, which is causing people at the entry-level side of the market to struggle to secure financing. Also we are constantly being hit with negative media regarding money laundering and the effects it may have had on the real estate market.
There were 5,742 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2019.
The total number of homes currently listed for sale on the MLS® in Metro Vancouver is 14,357, a 46.2 per cent increase compared to April 2018 and a 12.4 per cent increase compared to March 2019 (12,774).
“There are more homes for sale in our market today than we’ve seen since October 2014. This trend is more about reduced demand than increased supply,” Smith said. “The number of new listings coming on the market each month are consistent with our long-term averages. It’s the reduced sales activity that’s allowing listings to accumulate.”
The overall sales-to-active listings ratio for April 2019 is 12.7 per cent. By property type, the ratio is 9.4 per cent for detached homes, 15.4 per cent for townhomes, and 15.3 per cent for apartments. We are definitely in buyers territory with every property type.
The HPI index for home prices indicate that detached homes across metro vancouver. Have dropped 11.1 percent since last year, townhouses have dropped 7.5% and condos have dropped 6.9%
So my advice to buyers, there are many over priced homes listed on the MULTIPLE LISTING SERVICE system. But homes priced at market value are still selling.
For sellers who are thinking about upgrading from a condo to a house. The detached home market has been hit with a greater price decrease than the condo market. So there is no point waiting for the market to recover otherwise you may become priced out of the detached housing market again.
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.