Market Update August 2018
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With the recent cool down in the Metro Vancouver real estate market, the media is having a field day pumping out articles creating fear of an imminent crash and stalling some Buyers and Sellers from making a move. We understand that there are some of our clients who’ve jumped on this bandwagon and are anticipating a bargain basement markdown in prices – but we advise that it is always risky to try to time the market.
There’s more than just home prices to consider when purchasing real estate. With the increased inventory to choose from and low mortgage rates, there are still some great opportunities in the market and good product continues to move.
“Home buyers have been less active in recent months and we’re beginning to see prices edge down for all housing types as a result,” Phil Moore, REBGV president said. “Buyers today have more listings to choose from and face less competition than we’ve seen in our market in recent years.”
For all property types, the sales-to-active listings ratio for August 2018 is 16.3%. By property type, the ratio is 9.2% for detached homes, 19.4% for townhomes and 26.6% for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
While the composite benchmark price has seen slight decreases over the last couple months of less than two percent, the prices are still higher than compared to August 2017 and in 2015, as seen in the graph below of median sales prices:
Opportunities in the Market:
Like last month, there are still some great opportunities in the market for people looking to sell or buy.
– Moving Up – It’s a great time to move up from condos and townhomes into a detached home, with increased inventory and narrowing price gaps.
– Going East to West – If you are considering moving East to West, now is a great time to do so. Good quality homes on the East side are maintaining their value while homes on the West side have seen price decreases.
– Attached Prices Near their Peak – Attached product is nearing its pricing peak, so now is a good time to sell, especially if you are thinking of moving into a detached single family home.
– Inventory – There is an increase in inventory as the market has shifted from a Sellers market to a Buyers market, giving buyers more choice and time to find the right home. There is more on the market currently than there was last year at this time, giving Buyers more options to find their dream home.
– Low Interest Rates – Currently, interest rates are still considerably low, but are forecasted to go up in the near future, so it’s a great time to purchase and lock in a low rate.
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