The April Housing Update Is Here!
Last month, we witnessed fewer buyers and many more home sellers. The Real Estate Board of Greater Vancouver (REBGV) has reported that the residential property sales in the region have totaled to 2,579. This is a 27.4% decrease as recorded to the previous year which was 3,553 respectively. This is a 2.5% for when compared to the number of homes sold in March 2018 which equalled 2,517 homes.
April witnessed a 22.5% decrease when compared to the 10-year sales average for the same month.
Phil Moore, REBGV president was quoted saying, “Market conditions are changing. Home sales declined in our region last month to a 17-year April low and home sellers have become more active than we’ve seen in the past three years. The mortgage requirements that the federal government implemented this year have, among other factors, diminished home buyers’ purchasing power and they’re being felt on the buyer side today.”
In terms of detached, attached and apartment properties, 5,820 homes were newly listed for sale on the Multiple Listing Service in Metro Vancouver. This is an 18.6% increase with respective to the 4,907 homes listed last year in the same month. It is also a 30.8% increase when compared to March 2018 wherein 4,450 homes were listed respectively.
On the MLS® system, the total number of properties listed for sale equal 9,822 homes in Metro Vancouver. This is in fact a 25.7% increase when compared to last year. It is also a 17.2% increase with respective to March wherein 8,380 homes were listed for sale. Moore also further stated, “Home buyers have more breathing room this spring. They have more selection to choose from and less demand to compete against.”
The sales-to-active listings ratio, one of the most important indicators in this market was quoted at 26.3% in April. When broken down by property type, here are the ratios:
It is generally believed that a downward pressure on the home prices occurs only when the ratio dips below 12% while as an upward pressure is experienced on the same when the ratio crosses 20% for a sustained period of time.
Another important indicator, The MLS® Home Price Index composite benchmark price for all residential properties was recorded at $1,092,000 in April 2018. This indicates a 14.3% increase when compared to last year and a 0.7% increase vis-à-vis March 2018.
Moving on to sales, a total of 807 detached properties were sold. This represents a 33.4% decrease from last year wherein 1,211 homes were sold. The benchmark price of the same is $1,605,800. A 5.1% increase from last year can be recorded as well as 0.2% decrease from March 2018.
Similarly, sales of apartment properties equaled 1,308. This is a 24% decrease from April 2017 wherein 1,722 homes were sold. The benchmark price for an apartment property is $701,000. This is a 23.7% increase from last year and a 1.1% increase when compared to March of this year.
In terms of attached property sales, a total of 464 homes were sold. This represents a 25.2% decrease when compared to the 620 homes sold last year. The benchmark price of an attached unit is $854,200. This is a 17.7% increase from April 2017 and a 2.3% increase when compared to March.
In conclusion, though most stats seem to showcase an increase, only time will tell how the economics of demand and supply play out in the market.