Hello Everyone,
I hope you all had a wonderful Victoria Day long weekend? It’s wonderful to be getting all of this sunshine.
We are definitely seeing a change in our real estate market. Generally speaking, inventory is on the rise and sales volume is slowing down. Looking across all of the Metro Vancouver area, sales volume was down 27% in April compared to a year ago in April of 2017. It’s also 22.5% below the 10 year average for the month.
“Market conditions are changing. Home sales declined in our region last month to a 17-year April low and home sellers have become more active than we’ve seen in the past three years,” Phil Moore, REBGV president said. “The mortgage requirements that the federal government implemented this year have, among other factors, diminished home buyers’ purchasing power and they’re being felt on the buyer side today.”

Looking at the market a little more closely, while it’s true we have seen a significant slow down compared to the last three years of red-hot sales, one bedroom condos continue to sell at breakneck speed. It is still common place to see multiple offers for these homes. 

The new mortgage lending rules announced by the Feds has reduced the buying power of many home purchasers, creating more competition for the more affordable homes. This, coupled with pending changes announced by our Provincial government has created some uncertainty in the market and contributed to the general slow down in the other market segments.

Overall, this is finally some good news and relief for Buyers (so long as you’re not looking for a one bed condo of course!) who, for quite some time now, have been subject to fierce competition in the marketplace. 

“Home buyers have more breathing room this spring. They have more selection to choose from and less demand to compete against,” Moore said.

It’s not all doom and gloom for sellers - prices are still up 14.3% across all property types in Metro Vancouver, compared to April 2017. Breaking it down by market segments: detached home prices are up 5.1%, condos are up 23.7% and attached properties are up 17.7% when compared to April 2017.

I think we’ll see some softening in the prices before the market adjusts to all of the recent changes.

Here's a snapshot of info for Vancouver. Please get in touch with further questions on this or other areas:
*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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