Sunday, 12 July, 2020

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Vancouver Detached Real Estate Sees More Sales Than New Listings… Prices Still Drop | Better Dwelling


Greater Vancouver detached real estate buyers are jumping back into the market. Real Estate Board of Greater Vancouver (REBGV) data shows a big increase in sales for December. The increase in sales was accompanied by fewer homes for sale – but prices are still lower.

Vancouver Detached Real Estate Prices Are Still Falling

Greater Vancouver detached real estate prices are still falling. REBGV reported the detached benchmark, a.k.a. typical home, price fell to $1,423,500 in December, down 4.0% from the same month last year. In the city, Vancouver East prices fell to $1,390,100, down 3.1% over the same period. Vancouver West fell to $2,588,900, down 6.7% from a year before. These are hefty drops from a year ago, but there are some signs of stabilization.

Greater Vancouver Detached Benchmark Price

The price of a typical detached home across the Greater Vancouver Real Estate Board, in Canadian dollars.

Source: REBGV, Better Dwelling.

The rate of price growth, or declines in this case, are showing some signs of improvement. The 12-month decline in December is the smallest since September 2018. The detached benchmark is at the same level it was six months ago. Losses are getting smaller, but there are losses.

Greater Vancouver Detached Benchmark Percent Change

The 12 month percent change of a typical detached home across the Greater Vancouver Real Estate Board.

Source: REBGV, Better Dwelling.

Vancouver Detached Real Estate Sales Are Back To Normal

Greater Vancouver detached real estate sales made a big increase from last year. REBGV reported 599 sales in December, down 27.39% from the month before. Compared to last year, sales were 72.1% higher. That sounds like a big jump, but last year was close to historic lows for the month. A reality check shows this past December was still 2.76% lower than the 5-year median sales volumes for the month.

Greater Vancouver Detached December Sales

The number of detached homes sold in the month of December, across Greater Vancouver.

Source: REBGV, Better Dwelling.

Vancouver Detached Inventory Is Only 2% Below Typical

Greater Vancouver saw fewer people listing their home for sale last month. REBGV saw 522 new detached listings in December, down 50.52% from the month before. Compared to last year, this number was just 2.61% lower though. The monthly drop was significant, however, the annual decline wasn’t huge considering the volume.

Greater Vancouver Detached Sales Vs. New Listings

The total number of detached sales, compared to the number of new detached listings per month.

Source: REBGV, Better Dwelling.

Fewer new listings and improved sales helped bring down total inventory though. REBGV had 3,941 active detached listings in December, down 17.65% from the month before. Compared to last year, this is a 19.59% drop. Big decline from last year, but only 2.74% lower than the 5-year median number of listings for December.

The same trend of fewer listings and more sales, might be pointing to some firmer footing for prices. The sales to active listings ratio (SALR) reached 15.2% in December, up 114.08% from last year. Generally speaking, the industry expects prices to rise when the SALR is above 20%. When it falls below 12%, the industry expects prices to fall. Between 12% and 20%, and the market is priced just right. The market is currently in the balanced area, so if it stays here – expect some price stabilization.

Greater Vancouver’s detached real estate market is seeing more sales, and fewer listings – but prices are still dropping. The rise in sales and drop in listings isn’t the big news it seems when looked at a longer context. Both sales and listings are closer to historically typical levels for December. Of course, these typical numbers are reached with buyers delayed by B-20 guidelines – so it’s tough to say if this is truly a return to normal.

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