Now that it’s February, we can take a detailed look at sales from January, and identify trends we might expect to continue further into the year. I will provide some data from the Lower Mainland as a whole, as well as highlighting statistics in specific areas. In general, the market is currently struggling to provide enough supply to meet the heavy demand; continued development will be necessary.
Based on the number of new listings available in January 2018, we are experiencing continued decline compared to the 10 year monthly average. This is the third consecutive year lower than the year before. Last month, 3,096 new listings were put on the market. This is 21% less than the 10 year average. However, total sales for the Greater Vancouver Area were up from the previous January, with 1,864 homes sold (the mix of housing forms skewed in favour of condos and townhomes). The number of total active listings on the market at the month’s end was 7,371, which was around 500 less than the January 2017 number.
The supply of detached homes exceeds the supply of townhomes and apartments. There is a 5 month supply for this form of housing, and more in particular areas; for instance, the West Side has a 13 month’s supply of detached housing, considering only 46 homes were sold in January). For townhouses and apartments, there is only a 1 or 2 month supply, and the high demand results in many multi-offer scenarios. “Demand remains elevated and listings scarce in the attached and apartment markets across Metro Vancouver,” Jill Oudil, President of the Real Estate Board of Greater Vancouver said. “Buyers in the detached market are facing less competition and have much more selection to choose from. For detached home sellers to be successful, it’s important to set prices that reflect today’s market trends.” Moving forward, we hope to see more high-density stock available for buyers. The interest rate increase in January, combined with stricter mortgage qualifications and the new provincial budget targeting housing affordability, will potentially affect the markets.
Here are some recaps by region:
The sales for Greater Vancouver were greater than January 2017 but lower than January 2016. 1,846 units were sold. There were 7,371 active listings on the market, with 4 months of supply; the detached market was a buyer’s market, whereas non-detached was a seller’s market. The sales to listings ratio was 47%.
This region experienced an uptick in sales, a 24% increase compared to the previous January. 1,210 sales were recorded. This number was down from December 2017, which could be accounted for by buyers rushing to secure their purchases before new mortgage rules were implemented in January 2018.
Vancouver Westside Residential:
313 unit sales were recorded. This is up 15% from January 2017, but down 34% from January 2016. There were 1,331 active listings, which is almost identical to the previous January. There was 4 months of supply, with a seller’s market for apartments and townhouses, whereas detached homes acted like a buyer’s market. There was a sales to listings ratio of 39%.
Vancouver Eastside Residential:
There were 137 units recorded as sold. This is almost identical to January 2017, yet 34% less than the number in January 2016. There were 922 active listings, with new listings increasing by only 5% from January 2017. There were 7 months’ supply of residential listings (this was a balanced market with detached homes acting as a buyer’s market) and a sales to listings ratio of 34%.
North Vancouver Residential:
132 units were sold. This is a 23% increase from January 2017 and a 21% decrease from January 2016. There were 413 active listings, which is a slight increase from January 2017; new listings experienced a 1% decrease. The total supply of residential listings was at 3 months’ supply – this was seller’s market for apartments and townhouses, with some buyer’s market tendencies. The sales to listings ratio was 45%.
West Vancouver Houses:
43 units were sold. This represents a 65% increase from January 2017 and a 60% decrease from January 2016. There were 493 active listings, compared to 416 at this time last year. New listings only decreased by 5% compared to last year. This region was considered to be an extreme buyer’s market due to possessing an 11 months’ supply of residential listings. The sales to listings ratio was 23%.
275 units were sold. This is a 22% increase from January 2017 and a 30% decrease from January 2016. There were 1,104 active listings, 50 less than this period last year. New Listings in January 2018 were down 18% compared to January 2017. There was 4 months of residential supply, which was a seller’s market for apartments and townhouses while detached housing acted like a buyer’s market. The sales to listings ratio was 50%.
I hope this post gives you some insight on how different markets within the Lower Mainland are performing, and allows you to plan for the year ahead!
Picture Source: BIV