Sales
According to the Real Estate Board of Greater Vancouver (REBGV), Metro Vancouver realtors registered 2,214 home sales in November 2016, down 37.2% compared to November 2015 when 3,524 homes sold. When looking month over month, a decrease of 0.9% from the 2,233 sales recorded in October 2016. November sales were 7.6% below the 10-year sales average for the month.
Property Listings
Looking at home listing trends that supply housing market demand, the total number of listings in our market settled at 3,147 homes in November 2016, roughly down 20.9% compared to the 3,981 units listed in October 2016 and a 7.2% decrease compared to November 2015 when 3,392 properties were listed.
Sales-to-active-listings Ratio
To understand the relationship between supply and demand, we look to sales-to-active-listings ratio. The ratio today is 26.4%. This is up 2% from October’s 24.4%, but well below where the market was in March 2016 (70.3%). Typically analyst say, downward pressure on home prices occurs when the ratio drops below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
Benchmark Price
The benchmark price for all properties in the region is approximately $908,300, up 20.5% from November 2015, but compared to October 2016, there was a decrease in detached (2.1%) and townhome (6.7%) prices, while condo prices remain virtually unchanged at $512,100 and is an 18% increase compared to November 2015.
Market Conditions
Market conditions began to shift in the spring of 2016. This change has been compounded by a series of government interventions this year. In February 2016, the provincial government added a third tier to the Property Transfer Tax, followed by a sudden implementation of a 15% Foreign Buyers’ Tax in August 2016.
These changes are affecting demand, particularly in the high-end of the market. In October 2016, the federal government implemented new mortgage rules that cut low-equity homebuyer’s purchasing power by as much as 20%. This change is said to have the biggest impact on the condo and townhome markets. As uncertainty increases, potential buyers and sellers are taking a wait-and-see approach to better understand how they will be affected.
Real Estate Board of Greater Vancouver, “Home sales and listings just below 10-year average,” REBGV, accessed December 5, 2016, http://www.rebgv.org/monthly-reports?month=November&year=2016
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