After years of record-breaking growth, the Greater Vancouver Area real estate market is cooling off. According to data released by the Real Estate Board of Greater Vancouver on Monday, the region saw a total of 1,595 residential sales representing a 43.5% decrease from last September and a 17.3% decrease from last August.
To put it bluntly, Vancouver’s real estate market just had the worst September in decades.
It shouldn’t come as a surprise that home appreciation just hit a wall. September saw 5,279 newly-listed properties on the MLS in September in what was a 36% increase from August 2018. Pair that with the effects of higher interest rates and stricter mortgage restrictions and the September’s numbers aren’t at all shocking.
“There’s more selection for home buyers to choose from today. Since spring, home listings totals have risen to levels we haven’t see in our market in four years.”
“Fewer home sales are allowing listings to accumulate and prices to ease across the Metro Vancouver housing market,” said Ashley Smith, president of the Real Estate Board of Greater Vancouver. “There’s more selection for home buyers to choose from today. Since spring, home listings totals have risen to levels we haven’t see in our market in four years.”
Of course, Vancouver’s real estate remains one of the most unaffordable in the country. Right now, the benchmark prices are $1,540,900 for a detached property, $837,600 for a townhouse and $687,300 for an apartment. Though we did see a small price decrease across the board of 3.1% compared to last August, the sales-to-active-listings ratio hasn’t quite hit the level that would result in a decline in prices.
Economists agree that the magic sales-to-active number is 12% for a sustained period. September’s ratio for all property types was 12.2%. It was 7.8% for detached homes, 14% for townhouses and 17.6% for condominiums.