Vancouver Housing Update August 2019

If you’ve been following the Metro Vancouver housing market, you know that this year has seen plenty of changes. However, it appears that the summer months have helped level things out. Over the past six months, Vancouver’s market has seen fewer sales but an increased supply of homes. The drop in benchmark prices across the board has led to an increase in sales compared to ten years ago, though. While some buyers remain hesitant, sales in August saw an increase compared to August 2018.

According to the Real Estate Board of Greater Vancouver (REBGV), last month’s sales were 12.7% lower than July 2019 but represented a 15.7% increase compared to August 2018. 

 

Headed Towards a Balanced Market

There are 13,396 homes currently listed on the Multiple Listing Service® (MLS®) system in Metro Vancouver, a 5.9% decrease compared to July 2019, and a 13.3% increase compared to August 2018. 

 

The sales-to-active listings ratio for August 2019 for all property types is 16.7%. By property type, that’s 12% for detached homes, 18.4% for townhomes, and 21.2% for apartments.

 

According to most analysts, home prices drop when the sales-to-active listings ratio falls below 12% for a sustained period. When the ratio consistently surpasses 20% for several months, home prices generally increase.

 

“Home sales returned to more historically normal levels in July and August compared to what we saw in the first six months of the year,” says Ashley Smith, REBGV president. “With more demand from home buyers, the supply of homes listed for sale isn’t accumulating like earlier in the year. These changes are creating more balanced market conditions.”

 

Continued Drop in Composite Benchmark Price, but Market Shows Signs of Rebounding

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver continues to drop and is currently $993,300. The composite benchmark price has decreased by 8.3% compared to August 2018 but shows only a 0.2% decrease compared to July 2019. 

 

There were 706 sales of detached homes in August 2019, a 24.5% increase compared to August 2018. This number represents a 9.8% decrease from August 2018, but a 0.7% increase compared to July 2019.

 

Apartment home sales in August 2019 reached 1,116, representing an 8.9% increase compared to August 2018. This increase in sales can likely be attributed to the new benchmark price of an apartment property, currently $771,000. This price represents a 7.4% decrease from August 2018, but a slight (0.1%) increase compared to July 2019. 

 

Attached home sales in August 2019 saw a 21.4% increase compared to last year, with 409 homes sold compared to 337 sales in August 2018. Again, this is likely due to the new benchmark price of an attached unit, currently $654,000. This price a 7.8% decrease from August 2018, but a 0.2% increase compared to July 2019. 

 

Navigating the Market

Are you intrigued by the possibilities of Metro Vancouver’s changing market? Whether you’re a first-time buyer or a seasoned pro, Stilhavn’s team of expert REALTORS® are here to help.

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