2017 Market Retrospective

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Here’s a look at the wonderful world of real estate as we approach end of year. These are Vancouver’s latest market trends and statistics. I hope this read is helpful and offers insights that answer your questions and inform your plans.

Sales for November were down from October in most areas – this is a trend we expect to see most years. Greater Vancouver home sales totalled 2,831 in November, down 8 percent from October (3,073) and up 26 percent from November 2016, when the fallout from the Foreign Buyer Tax was still new. The 10 year average for sales in November is 2,605; this means sales for this November were 9 percent above the average. Sales in West Vancouver were actually 24 percent higher in November compared to the month previous (57 sales versus 46). While the numbers of new listings coming on market in most areas are down for November compared to October, new listings were still up considerably compared to November 2016. In Greater Vancouver, this increase was 27 per cent, and 25 per cent above the 10 year average for November. In North Vancouver the number of new listings was 69 percent higher than November 2016. Contrary to this is a dropping Active Listing count – finishing in November at 9,369 listings compared to 9,768 at the end of October. The number of new listings coming on market was 17 percent higher than the average for the month of November going back to 1991.

With the new Federal mortgage rule changes slated to begin on January 1st, 2018, we may see a bump in December activity, as some buyers may try to obtain mortgages before the stress test requirement comes into play. Both the Federal and Provincial governments have made announcements about funding more affordable and social housing. Also, the City of Vancouver has come out with their Housing Vancouver Strategy, which states their intent to build 72,000 new homes over the next 10 years. We need not only new housing, but the right mix of housing. Of course, the demand side of the equation is getting significant discussion in the public and media. The City of Vancouver is looking to the Provincial Government for help on this, but we’ll have to wait until the February Provincial Budget is revealed to see what they are willing to do. According to the Premier, they want to get it right and not make a rash decision.

“We’re seeing steady demand in today’s market. Home buyer activity is operating above our long-term averages, particularly in our townhome and condominium markets,” Jill Oudil, Real Estate Board of Greater Vancouver president said. “While we’re seeing more listings enter the market today than we saw at this time last year, we have a long way to go before our home listing inventory rises back to more historically typical levels.”

The Fraser Valley Real Estate Board processed 1,743 sales of all property types on its Multiple Listing Service® in November, an increase of 39.8 per cent compared to the 1,247 sales in November of last year, and a 3.1 per cent decrease compared to the 1,799 sales in October 2017. This will mark the second highest sales total for a November in the Board’s history. “Our attached market feels like our detached market used to,” Gopal Sahota, Fraser Valley Real Estate Board president remarked. “With our townhome and apartment inventory here, you have the same wide spectrum for pricing and supply that’s helping buyers of all types find success in the Valley.”

Please call me any time and I’ll always be interested in sitting down to discuss this further and answer all questions you may have going forward. I stay up to date on these markets so that I can help my clients navigate the buying or selling process as smoothly as possible. I hope this summary is helpful!

 

Picture source: Van City Buzz