Vancouver is infamous for being one of the most expensive real estate markets in North America. Fortunately for us, a news release published today from the Real Estate Board of Greater Vancouver shows that both housing prices and the demand for housing in Vancouver have been noticeably dropping.
The real estate board claims in their report that the housing market in Vancouver is transitioning from a seller's market to a buyer's one. That means that it will be easier and more favorable for the people that are looking to buy a house than those looking to sell one.
“Fewer home sales are allowing listings to accumulate and prices to ease across the Metro Vancouver housing market,” said Real Estate Board of Greater Vancouver president-elect, Ashley Smith, in the report. “There’s more selection for home buyers to choose from today. Since spring, home listing totals have risen to levels we haven’t seen in our market in four years.” As the rules of supply and demand tell us, more supply and less demand typically equates to lower prices for buyers.
The Real Estate Board of Greater Vancouver reported that the number of residential property sales in the month of September 2018 dropped by 43.5 percent when compared to September 2017 and by 17.3 percent when compared to just the month before, August 2018. Furthermore, sales in September 2018 were 36.1 percent below the 10-year September sales average.
Detached houses in the City of Vancouver sold for an average of $2,493,952 in August 2018, which is 19 percent lower than what it was two years ago, $3,080,907 in April 2016, according to what Steve Saretsky, a real estate agent, told The Globe And Mail.
The real estate board's data shows that the number of sales for detached homes in September 2018 dropped 40.4 percent from September 2017, from 852 last year to 508 this year. The benchmark price for detached houses is currently $1,540,900, which is a 4.5 percent decrease from one year ago. 4.5 percent on its own may not sound like much, but when you apply it to this situation, it represents a price decrease of approximately $69,340. Prices for apartments and townhouses have also dropped over the last three months.
"Metro Vancouver’s housing market has changed pace compared to the last few years," Smith said in the news release. "Our townhome and apartment markets are sitting in balanced market territory and our detached home market remains in a clear buyers’ market". You can check out the full news release published by the Real Estate Board of Greater Vancouver here.
A report published by Zoocasa in September 2018 demonstrated just exactly how unaffordable buying a house or apartment in Vancouver currently was. Their research showed that it was pretty much impossible for someone with a median income to buy a house in any of the 21 Metro Vancouver neighbourhoods if only based on their salary.
The income gaps between median incomes and incomes required for buying a house was huge, reaching as high as $384,965. To find out more about the study, check out this article about it.
Two months ago in August 2018, the housing sales in Vancouver hit a six-year low, The Globe And Mail reported. Just this year, Vancouver was ranked fourth in the whole world for being at most risk of a real estate bubble, and it looks like that prediction could be coming true soon.
If these 2018 housing trends reported by the Real Estate Board of Greater Vancouver continues in the city, there is a possibility that house and apartment prices could potentially become more affordable for Vancouverites.