Home Buyer activity increases in October
The Metro Vancouver housing market is experiencing a fall pickup in home sale activity.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totaled 2,858 in October 2019, a 45.4 percent increase from the 1,966 sales recorded in October 2018, and a 22.5 percent increase from the 2,333 homes sold in September 2019.
Last month’s sales were 9.8 percent above the 10-year October sales average.
“Home buyers have more confidence today than we saw in the first half of the year,” says Ashley Smith, REBGV president. “With prices edging down over the last year and interest rates remaining low, hopeful home buyers are becoming more active this fall.”
There were 4,074 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in October 2019. This represents a 16.4 percent decrease compared to the 4,873 homes listed in October 2018 and a 16.3 percent decrease compared to September 2019 when 4,866 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 12,236, a 5.8 percent decrease compared to October 2018 (12,984) and a nine percent decrease compared to September 2019 (13,439).
For all property types, the sales-to-active listings ratio for October 2019 is 23.4 percent. By property type, the ratio is 17.3 percent for detached homes, 26.2 percent for townhomes, and 29 percent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 percent for a sustained period, while home prices often experience upward pressure when it surpasses 20 percent over several months.
“The recent uptick in home sales is moving us into a more historically typical market,” Smith said. “Both sale and listing activity is trending around our long-term averages in recent months.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $992,900. This represents a 6.4 percent decrease from October 2018, a 1.7 percent decrease over the past six months, and a 0.2 percent increase compared to September 2019.
Sales of detached homes in October 2019 reached 938, a 47.3 percent increase from the 637 detached sales recorded in October 2018. The benchmark price for a detached home is $1,410,500. This represents a 7.5 percent decrease from October 2018, a 1.3 percent decrease over the past six months, and a 0.3 percent increase compared to September 2019.
Sales of apartment homes reached 1,384 in October 2019, a 40.5 percent increase compared to the 985 sales in October 2018. The benchmark price of an apartment home is $652,500. This represents a 5.9 percent decrease from October 2018, a 2.2 percent decrease over the past six months, and a 0.2 percent increase compared to September 2019.
Attached home sales in October 2019 totaled 536, a 55.8 percent increase compared to the 344 sales in October 2018. The benchmark price of an attached home is $771,600. This represents a 5.8 percent decrease from October 2018, a 0.4 percent decrease over the past six months, and a 0.5 percent increase compared to September 2019.
In the last month’s report, we had noticed an increase in Detached-Home prices. This month the increase applied to all categories. As I had predicted in the September report. Is my prediction about the Real Estate Market of Vancouver and Lower Mainland being realized?
If you are searching for a home, these months are the last ones before we turn into the Sellers Market. YOu should finalize your search and make the decision on which one to buy.
Feel free to contact me with your questions by calling 604 500 2678