Wednesday, August 8, 2018

Vancouver’s condo market expected to sit in buyers’ territory for the rest of 2018: expert

As Vancouver condo inventory increased in July in the face of plummeting sales, one Vancouver realtor says the market is favouring buyers and will continue to trend in this direction for the rest of the year.
Last month, a total of 427 condos changed hands in the city, down 22 per cent from a year ago, according to the Real Estate Board of Greater Vancouver (REBGV).
July’s sales were also 20 per cent below the 10-year sales average for the month.
“We’re entering into a slower period from a seasonality perspective so I think that you’ll probably continue to see the market trend towards favouring buyers. I think inventories are going to keep building up here and I don’t expect sales to get stronger in the back half of this year. I think for buyers it’s definitely encouraging,” Vancouver-based realtor Steve Saretsky tells Livabl.
In a blog post, Saretsky writes that, so far, condo sales have declined each month this year and dropped to their lowest total for July in six years.
Saretsky attributes the fall in sales to a combination of factors, including government intervention and higher interest rates.
With condo sales dropping and more supply hitting the market, inventory is on the rise in the condo segment.
In July, Vancouver’s condo inventory hit a three-year high for the month, increasing 32 per cent compared to a year ago.
Saretsky says supply still remains low on a historical level but is starting to grow — an uncommon trend in the city.
“Over the last couple of years, the trend has been lower inventory and more sales and now it’s fewer sales and higher inventory. So, buyers and sellers alike have to adjust to that,” says Saretsky.
While the city is experiencing a slower sales pace, Saretsky says prices are still holding up relatively well.
He adds that condo prices peaked in the beginning of 2018 and have been declining ever since.
“Condo prices have definitely topped out and I would say they topped out in Vancouver probably about four or five months ago. And, since then, it’s been a steady decline lower. I would say typical condo prices are off about 5 per cent from their peak,” says Saretsky.
Last month, the average sales price of a condo dropped two per cent compared to a year ago.

Thursday, August 2, 2018

Vancouver home sales hit 18-year low

VANCOUVER _ Home sales in July across Metro Vancouver tumbled to their lowest level in 18 years in statistics compiled by the real estate board, but prices remained steady since last month.
The Greater Vancouver Real Estate Board says 2,070 properties changed hands in July, a 30 per cent plunge when compared with July of last year and about 29 per cent below the 10-year sales average for the month.
The number of condos, townhomes and detached houses listed for sale were up 32 per cent year-over-year, and 1.6 per cent since June.
The real estate board says the benchmark price for all residential properties was just under $1.1 million, a 6.7 per cent hike over July 2017 but a slip of 0.6 per cent since June.
Board president Phil Moore says the number of sales to active listings across Metro Vancouver last month was pegged at almost 10 per cent for detached homes, 20 per cent for townhomes and about 27 per cent for condos.
Analysts expect downward pressure on prices when the ratio dips below 12 per cent, while property prices tend to climb when it is over 20 per cent.
Moore said there's less upward pressure on home prices across the region.
``This is most pronounced in the detached home market, but demand in the townhome and apartment markets is also relenting from the more frenetic pace experienced over the last few years,'' Moore said in a news release on Wednesday.
Real estate board data shows July sales of single detached homes plunged nearly 33 per cent compared with July of last year, while the almost $1.6 million benchmark price slipped 1.5 per cent over the same period and is down 0.6 per cent since June.
Sales of condos decreased 26.5 per cent year-over-year while sales of townhomes fell by almost 35 per cent, but both property types have seen price hikes above 12 per cent since last July.
The benchmark price is $700,500, for a condo and $856,000 for a townhome, but the board says prices for condos and townhomes have slipped about 0.5 per cent since June.
``With increased mortgage rates and stricter lending requirements, buyers and sellers are opting to take a wait-and-see approach for the time being,'' Moore said.

The Canadian Press