December 2018 Market Insight
REBGV December 2018 market update video

Metro vancovuer home sales in 2018 were the lowest annual totals in teh region since 2000.

The last 12 months was a period of transition for the Metro Vancouver housing market as we moved away from the Sellers market to conditions more favourable to Buyers

We registered 24,619 sales on the MLS in 2018. This was about a 32% decline from 2017; and 25% below the region’s 10 year average.

High home prices, rising interest rates, and new mortgage requirements and taxes, all contributed to the lower home buyer demand.

On the supply side, there were 53,614 homes listed for sale on the MLS in 2018….a 1.9% decline compared to 2017, and a 6.9% decline from 2016. Despite these reductions, reduced home buyer demand allowed for the total inventory of homes for sale to accumulate throughout the year to levels we haven’t seen in 4 years.

Like all markets, home prices responded to changes in supply and demand…measured by comparing the total inventory of homes currently for sale to the number of sales in a month (called Sales-to-Active Listings Ratio).

Downward pressure on home price can occur when the ratio dips below the 12% mark, and home prices can experience upward pressure when the ratio surpasses 20% for sustained periods.

2018 ended with a Sales-to-Active Listings Ratio of 10%, which suggests a Buyers Market.

By property type, we see Detached Homes are on in Buyers Market territory (7%); while Townhomes (12%) and Condos (14%) are in a lower end of a balanced market.

Looking at home prices, we see the benchmark price for all residential homes in Metro Vancouver decline 2.7% in 2018 compared to 2017.

By home type, Detached homes saw a 7.8% decline, while Townhomes (+.06%) and Condos (+1.3%) experienced slight increases due to a robust start to the year.

The supply of homes for sale will be an important indicator to follow in 2019. We’ve had record-building activity in recent years and many projects will complete soon, creating additional options for home buyers in the region.

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