While the first half of 2019 saw slower sales and reduced buyer demand, Metro Vancouver’s real estate market appears to be returning to normal as the year draws to a close. October 2019 saw a record number of sales as the market picks up speed once again.
According to the Real Estate Board of Greater Vancouver (REBGV), last month’s sales were 9.8% above the 10-year October sales average.
Home Buyer Activity Increases
There are 12,236 homes currently listed on the Multiple Listing Service® (MLS®) system in Metro Vancouver, a 9% decrease compared to September 2019, and a 5.8% decrease compared to October 2018.
The sales-to-active-listings ratio for October 2019 is 23.4%. By property type, that’s 17.3% for detached homes, 26.2% for townhomes, and 29% for apartments.
According to most analysts, downward pressure on home prices occurs when the ratio falls below 12% for a sustained period. Prices tend to increase, on the other hand, when the sales-to-active-listings ratio is above 20% for several months.
“Home buyers have more confidence today than we saw in the first half of the year,” says Ashley Smith, REBGV president. “With prices edging down over the last year and interest rates remaining low, hopeful home buyers are becoming more active this fall.”
Historically Typical Market
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $992,900. The composite benchmark price has decreased by 6.4% and 0.2% for October 2018 and September 2019, respectively.
“The recent uptick in home sales is moving us into a more historically typical market,” says Smith. “Both sale and listing activity is trending around our long term averages in recent months.”
There were 938 sales of detached homes in October 2019, a 47.3% increase compared to October 2018. This number represents a 7.5% decrease from October 2018 and a 0.3% increase from September 2019.
Sales of apartment homes in October 2019 reached 1,384, representing a 40.5% increase compared to October 2018. The growing number of sales may be a result of the 5.9% decrease in price from October 2018 and a minimal (0.2%) increase from September 2019.
Attached home sales in October 2019 saw a 55.8% increase compared to last year, with 536 homes sold compared to 344 sales in October 2018. The increase in attached home sales, like with apartments, is likely due to a lower benchmark price of $771,600. This price is a 5.8% decrease from October 2018, yet a 0.5% increase compared to September 2019.
Buy or Sell in Metro Vancouver
As the housing market appears to stabilize, find out what this means for your plans to buy or sell in Metro Vancouver. Navigate the industry like a pro with the help of Stilhavn’s team of award-winning REALTORS®, and find your havn in no time.