I hope you are all enjoying your summer so far?
It’s happened - inventory levels of homes for sale hit a three year high, in the month of June. This is due, in part, to sales activity dipping below the 10 year historic average for the month by 28.7%.
“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” Phil Moore, REBGV president said. “Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,947, a 40.3% increase compared to June 2017 (8,515) and a 5.8% increase compared to May 2018 (11,292). This is the highest this total has been since June 2015.
“With reduced demand, detached homes are entering a buyers’ market and price growth in our townhome and apartment markets is showing signs of decelerating.”
Within the City of Vancouver, detached houses have been in Buyer’s market territory since last July, while the townhouse and condo markets persisted as Seller’s markets. While the numbers for June still indicate seller’s market for condos, I would say this is for the one bedroom condos, ie: the more affordable end of the market. As we move into the summer months, I think we’ll see sales level out, with increased activity in the Fall, as is the usual cycle for the year, just at a more subdued pace. I don’t think we’ll return to the red-hot sales and price increases we’ve had of late for the balance of 2018 or 2019, but time will tell.
It’s not something we’ve said for the last three years, but: It’s a great time to be a Buyer!
For Vancouver, here is the snapshot:
*Month's Supply Key:
Seller's Market = 1-5 months
Balanced Market = 5-7 months
Buyer's Market = Over 7 months
Source of data: Real Estate Board of Greater Vancouver
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A large part of my business comes from referrals, so if you or someone you know is interested in buying and/or selling, please pass along my contact information and I would be happy to speak with them about how I can help.