The latest real estate statistics for June 2019 have just been announced by the Real Estate Board of Greater Vancouver. Last month’s sales were almost 35% below the 10 year average, which is the lowest since 2000. June was actually close to 15% lower in sales than the month before. Right now it’s definitely a buyers market. The tables have turned and sellers in most cases aren’t calling the shots, buyers have more choice in both the condo and detached market.
We’ve been feeling a general slowdown in the Vancouver housing market since mid-2018, while the slowdown for high-end/expensive homes started a bit earlier. It’s classic supply and demand, sales decrease and prices follow. As the intro graph shows, prices have been on a downward trend and in June the prices reductions continued.
What’s Our Take On The Market?
This is a fantastic time for buyers, more choice, better prices and less pressure during the purchase. For investors the numbers are making sense again, prices are much lower and rents continue to be strong. Purchasers buying for their own use are likely to feel more comfortable with the mortgage payments.
As for sellers, prices have come down and it’s a changing reality. Stop thinking you’re likely to get what other similar homes sold for last year, prices have come down. According to the latest real estate statistics the sales-to-active listings ratio for June 2019 is 13.9%. This means about 14 out of every 100 homes listed will sell. The homes considered to be priced appropriately compared to the competition will receive interest in most cases. It’s also more important now to present your home well, decluttered, cleaned, maintained and possibly the use of home staging. I recently posted a blog about using home staging. Homes are still selling and there’s even lots of multiple offer situations happening. From what we’re seeing though, if you’re listing for sale at an unrealistic price, buyers will simply view & buy other homes.
At the end of the day, I don’t think home sellers should be freaking out. Prices have come down but sellers have enjoyed a decade of increasing market, we’re still above 2017 prices. The real estate market in Vancouver was frenzied and prices increased dramatically in 2017 and the first half of 2018. The market has cooled, we’ve lost most of those recent gains but prices are still higher than 2017, i’ve posted a graph below:
Thinking of Selling Your Home?
If you’re thinking about selling your home in the near future don’t hesitate to reach out. Usually finding out what your home would likely sell for in today’s market is the first step, we can provide an assessment of your home. Visit our seller page, here.