The highlight of the March 2019 market report released by the Real Estate Board of Greater Vancouver (REBGV), showed that prospective buyers remain on the sidelines in March.
“Housing demand today isn’t aligning with our growing economy and low unemployment rates. The market trends we’re seeing are largely policy induced,” Ashley Smith, REBGV president said. “For three years, governments at all levels have imposed new taxes and borrowing requirements on to the housing market.”
“What policymakers are failing to recognize is that demand-side measures don’t eliminate demand, they sideline potential home buyers in the short term. That demand is ultimately satisfied down the line because shelter needs don’t go away. Using public policy to delay local demand in the housing market just feeds disruptive cycles that have been so well documented in our region.
In March 2019, realtors registered 1.727 residential property sales. This represented a 31.4% decline from the same period last year, 46.3% below the 10 year March sales average and was the lowest total for the month since 1986.
The number of detached properties sold was 529, 26.7% less than March 2018.
The number of apartments sold was 873, 35.3% less than March 2018.
The number of attached properties sold was 325, 27.1% less than March 2018.
In March, there were 4,949 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver. This represented a 11.2% increase compared to the 4,450 homes listed in March 2018, and a 27.2% increase compared to February 2019 when 3,892 homes were listed.
The total number of homes listed for sale in March increased to 12,774, a 52.4% increase when compared to the same month last year, and a 10.2% increase when compared to February 2019.
This ratio is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for a number of months.
For all property types, the ratio in March 2019 was 13.5%, suggesting mild downward pressure on home prices. When broken down by property types, the ratio was:
- 9.4% for detached homes
- 15.9 % for townhomes
- 17.2% for condominiums
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,011,200 in March. This represents a 7.7 per cent decrease from March 2018, and a 0.5 per cent decrease compared to February 2019.
Click here for a full report.
If you are planning on entering the real estate market with the present conditions, it is prudent to talk to an experienced real estate company, such as ours, to guide you effectively. If you are looking to buy or sell a home, contact us by email or call us on 604 913 1000.