Market Update – April 2019
April 2019 statistics have been released. Spring market is officially here! Please take the time to read through this email as I have included some additional info that isn’t available to the public, which may affect your market greatly in the near future.
According to the Real Estate Board:
VANCOUVER, BC – May 2, 2019 – Decreased demand continues to allow the supply of homes for sale to accumulate across the Metro Vancouver* housing market.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,829 in April 2019, a 29.1 per cent decrease from the 2,579 sales recorded in April 2018, and a 5.9 per cent 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.”
Alex’s Inner Circle Intel
April, May, June, and July are going to be a very good indication on where our market will be for the next year or so. Right now we are seeing an uptick in activity, but Buyer habits are still to sit on the sidelines and wait to see what happens. Overall, prices are still dropping due to the higher price range markets.
However, when priced right, homes still sell rather quickly. We have had numerous listings over the last month, and all sold within 2 weeks. One detached house even sold within the first 12 hours in multiple offers!
Again, the Real Estate Board stats are very generic and without context to the end user. Unfortunately as these statistics are public and free, the media uses them often, and sometimes for political purposes.
Just as before, I’m here to provide some detailed relevant information segmenting different markets, to make it more applicable to your situation.
At the bottom of this email, you will find a copy of the Snap Stats, which is something we utilize to benefit our knowledge to our clients. As many of our investor clients know, the price range of sub-markets are critical to the liquidity of the asset. Please do feel free to call Alex at 604-374-5534 to discuss further.
In the Snap Stats attached below, you will find the activity of the different price ranges per area. As a rule of thumb, sales ratio under 12% represents a downward pressure (Buyers’ market). Sales ratio between 12% to 20% represents a balanced market. Sales ratio above 20% represents an upward pressure (Sellers’ market). Over the last 5 months, we have seen an rise in demand within the lower price bands, which theoretically should start to affect market prices. This month, you can see from the Real Estate Board Statistics that prices have indeed started to decelerate downwards, and some markets are seeing continued uptick in prices.
If you are looking to make a move to sell this year, right now would be your best chance. Call or Email Alex to arrange a quick 30-minute chat to see whether it’s right for you right now. Everyone’s priorities and timing are different, and you need to equip yourself with the best and most relevant information for you and your family.
WHAT DOES THIS MEAN TO YOU?
Sellers – Your pricing need to remain SHARP. Buyers are there. There are lots of overpriced listings on the market with Sellers not coming to terms with our current climate. This is your best chance to use them as leverage. They will sit there for years, whereas you can sell yours quickly if you do it right. Most importantly, DO NOT take shortcuts to save home selling costs! We are seeing so many “cell phone pictures” and inaccurate information on MLS which leads to homes not selling at all. If you are looking to sell, please feel free to call Alex at 604-374-5534.
Buyers – There are a lot of overpriced properties on MLS. Don’t be tricked. However there are also some that are very well priced. This is your opportunity, but make sure you are equipped with a Comparative Market Analysis to know how a listing is priced. I’d be privileged to assist if you are in need of expertise and representation.
Details matter in this market. You have to go in with your eyes wide open. If you need any guidance or assistance, please do reach out and call Alex at 604-374-5534, or simply reply to this email. I look forward to helping you and/or your family and friends with all your Real Estate needs.
Detailed Real Estate Board Statistics Package