VANCOUVER, BC – August 2, 2018 – July’s residential housing sales in Metro Vancouver reached their lowest levels for that month since the year 2000.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,070 in July 2018, a 30.1 percent decrease from the 2,960 sales recorded in July 2017, and a decrease of 14.6 percent compared to June 2018 when 2,425 homes sold.
Last month’s sales were 29.3 percent below the 10-year July sales average.
“With fewer buyers active in today’s market, we’re seeing less upward pressure on home prices across the region,” Phil Moore, REBGV president said. “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.”
There were 4,770 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in July 2018. This represents a 9.2 percent decrease compared to the 5,256 homes listed in July 2017 and a 9.6 percent decrease compared to June 2018 when 5,279 homes were listed.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 12,137, a 32 percent increase compared to July 2017 (9,194) and a 1.6 percent increase compared to June 2018 (11,947).
“Summer is traditionally a quieter time of year in real estate. This is particularly true this year,” Moore said. “With increased mortgage rates and stricter lending requirements, buyers and sellers are opting to take a wait-and-see approach for the time being.”
For all property types, the sales-to-active listings ratio for July 2018 is 17.1 percent. By property type, the ratio is 9.9 percent for detached homes, 20.2 percent for townhomes, and 27.3 percent for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 percent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 percent over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,087,500. This represents a 6.7 percent increase over July 2017 and a 0.6 percent decrease compared to June 2018.
Sales of detached properties in July 2018 reached 637, a decrease of 32.9 percent from the 949 detached sales recorded in July 2017. The benchmark price for detached properties is $1,588,400. This represents a 1.5 percent decrease from July 2017 and a 0.6 percent decrease compared to June 2018.
Sales of apartment properties reached 1,079 in July 2018, a decrease of 26.5 percent compared to the 1,468 sales in July 2017. The benchmark price of an apartment property is $700,500. This represents a 13.6 percent increase from July 2017 and a 0.5 percent decrease compared to June 2018.
Attached property sales in July 2018 totalled 354, a decrease of 34.8 percent compared to the 543 sales in July 2017. The benchmark price of an attached unit is $856,000. This represents a 12.1 percent increase from July 2017 and a 0.4 percent decrease compared to June 2018.
*Editor’s Note: Areas covered by the Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta.
The real estate industry is a key economic driver in British Columbia. In 2017, 35,993 homes changed ownership in the Board’s area, generating $2.4 billion in economic spin-off activity and an estimated 17,600 jobs. The total dollar value of residential sales transacted through the MLS® system in Greater Vancouver totalled $37 billion in 2017.
The Real Estate Board of Greater Vancouver is an association representing more than 14,000 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.