April 2019 Vancouver Real Estate Market Update
Reduced demand and increased supply remain the trend across Metro Vancouver’s housing market
Decreased demand continues to allow the supply of homes for sale to accumulate across the Metro Vancouver housing market.
Sales in Greater Vancouver totalled 1,829 in April 2019, a 29.1% decrease from the 2,579 sales recorded in April 2018, and a 5.9% increase from the 1,727 homes sold in March 2019.
Last month’s sales were 43.1 per cent below the 10-year April sales average.
“Government policy continues to hinder home sale activity. The federal government’s mortgage stress test has reduced buyers’ purchasing power by about 20 per cent, which is causing people at the entry-level side of the market to struggle to secure financing,” Ashley Smith, REBGV president said. “Suppressing housing activity through government policy not only reduces home sales, it harms the job market, economic growth and creates pent-up demand.”
The total number of homes currently listed for sale on the MLS® in Metro Vancouver is 14,357, a 46.2% increase compared to April 2018 (9,822) and a 12.4% increase compared to March 2019 (12,774).
“There are more homes for sale in our market today than we’ve seen since October 2014. This trend is more about reduced demand than increased supply,” Smith said. “The number of new listings coming on the market each month are consistent with our long-term averages. It’s the reduced sales activity that’s allowing listings to accumulate.”
The benchmark price for all residential properties in Metro Vancouver is currently $1,008,400. This represents an 8.5% decrease over April 2018.
As a buyer, you have more supply to choose from than you've had in over 5 years. The higher the price point you are looking at, the more likely it is you can negotiate on price and favourable terms. Low Ball offers are becoming increasingly common, and some are being accepted.
As a seller, make sure you are working with a professional who knows how to market your home extensively to maximize its exposure. Price is the most important factor and if you need to sell, make sure to price ahead of the downward curve. Smartly priced properties properties are still selling in the first week.
As an Investor, you know we are in the late stages of the Slump Phase and are targeting the properties and investment strategies that thrive in this environment.
Focusing in on the Vancouver West area (from Downtown to Marpole, and everything West of Ontario St.) we see the Detached market Average Price down 13.4% from April 2018, Townhomes down 10.3% and Condo's were down 9.2%
Breaking It Down By Housing Type
Sales of detached properties in April 2019 reached 64, a 8.6% decrease from April 2018. The benchmark price for detached properties is $2,948,400. This represents an 13.4% decrease from April 2018.
Sales of Townhomes in April 2019 reached 32, a 23.8% decrease from April 2018. The benchmark price for Townhome is $1,167,700. This represents an 10.3% decrease from April 2018.
Sales of Condos in April 2019 reached 233, a 33.6% decrease from April 2018. The benchmark price for condo properties is $764,600. This represents a 9.2% decease from April 2018.