In March, Vancouver home sales dipped to the lowest levels seen in over three decades.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales decreased by 31.4% compared to March 2018, yet saw a 16% increase compared to February 2019.
Vancouver’s Lowest Sales Since 1986
Last month’s sales were 46.3% below the 10-year March sales average, making it the lowest total for the month since 1986.
Policy-Induced Market Trends
“Housing demand today isn’t aligning with our growing economy and low unemployment rates. The market trends we’re seeing are largely policy-induced,” said Ashley Smith, REBGV President. “For three years, governments at all levels have imposed new taxes and borrowing requirements on to the housing market.”
“What policymakers are failing to recognize is that demand-side measures don’t eliminate demand, they sideline potential home buyers in the short term. That demand is ultimately satisfied down the line because shelter needs don’t go away. Using public policy to delay local demand in the housing market just feeds disruptive cycles that have been so well-documented in our region.”
Downward Pressure on Benchmark Prices Shifts Metro Vancouver into a Buyer’s Market
In March 2019, there were 4,949 newly listed properties on the MLS® in Metro Vancouver. These included detached and attached homes as well as apartments. This represents an 11.2% increase in listings compared to March 2018, and a 27.2% increase compared to February 2019.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 12,774. This number represents a 52.4% increase compared to March 2018, and a 10.2% increase compared to February 2019.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,011,200. This represents a 7.7% decrease from March 2018, and a 0.5% decrease compared to February 2019.
Sales of detached homes in March 2019 saw a 26.7% decrease compared to March 2018. The benchmark price for a detached home is now $1,437,100. This represents a 10.5% decrease from March 2018, and a 0.4% decrease compared to February 2019.
Sales of apartment homes in March 2019 saw a 35.3% decrease compared to apartment sales in March 2018. The benchmark price of an apartment property is $656,900. This represents a 5.9% decrease from March 2018, and a 0.5% decrease compared to February 2019.
Attached home sales in March 2019 also saw a 27.1% decrease compared to the sales in March 2018. The benchmark price of an attached home is $783,600. This represents a 6%decrease from March 2018, and a 0.7% decrease compared to February 2019.
For more information on what the current market means for your next real estate decision, get in touch with one of our award-winning teams. Stilhavn REALTORS® are among Vancouver’s top tier real estate representatives, and would be happy to share our industry-leading advice with you!