VANCOUVER REAL ESTATE MARKET UPDATE
JUNE 19 2019
It's no secret that there has been some very interesting movement in our real estate market over the last couple of months. It appears that with some certainty, the lower price points in the market ($400k - $600K) have firmed up in most areas and we are not seeing too much movement in those price points.
We are also beginning to see some price stabilization in the townhouse segments; in fact, east Vancouver is reporting that condo's and townhouses are moving slowly back into a Seller's Market.
The same can't be said for single family homes, but the price slide is becoming more and more modest, moving down on average by only half a point (-0.5%) month over month.
While it's been a very slow start to the year, I do believe we are seeing the beginning of price stabilization (excluding West Vancouver). Properties above $1,500,000 are still seeing price movement but less so than a year ago. Certainly the volume of sales is still down considerably as inventory levels remain at 5yr highs.
GVRD Condominium Price Chart 2015 - 2018
It still remains a very good time to purchase a property as the cost of money is still quite cheap (below 3.0%) in most instances. With no interest rate hike on the horizon we are seeing more Buyer's getting into the market now than compared to Q1. It will be interesting to see how/if the stress-test will be affected in the coming election. Hopefully we'll see a reduction in the qualification rate which would boost Buyer's purchasing power.
Those looking to sell their property must consider their price points and strategy carefully; understanding that Sellers are competing for Buyer's offers.
However, in due course inventory levels will come down for a number of reasons but primarily because our population continues to grow alongside BC's strong economy. Roughly 40,000 people are migrating to the GVRD each year.
RBC Economists are calling for BC to be the Top Performing provincial economy in 2020. Job creation has picked up and historically low unemployment rates have persisted in the majority of provinces so far this year.
If you'd like more information about your neighborhood or have any questions about the report, just ask!
YEAR OVER YEAR PRICE CHANGES
Vancouver West March 2019:
Benchmark Detached: $2,927,600
Benchmark Townhouse: $1,116,000
Benchmark Apartment: $758,500
Vancouver East March 2019:
Benchmark Detached: $1,347,000
Benchmark Townhouse: $873,700
Benchmark Apartment: $569,300
Vancouver Real Estate Market UPDATE
Stats & Projections!
2019 Financing & Economic Specifics:
Housing demand will likely trend near its current level for several quarters before exhibiting a noticeable recovery.
Population growth is likely to be strong: Immigration targets have increased to 331k in 2019 while non-permanent residents should keep flocking to Canada. Moreover, a significant portion of Canadian residents are in their household formation years, providing a solid foundation for demand.
The economy will continue generating jobs: TD forecast calls for over 150k jobs being added in 2019 while unemployment remains low. This should keep household incomes growing at a reasonable pace.
Policymakers are preaching patience: Although the Bank of Canada maintains a tightening bias, the next hike likely won’t come until later in 2019, instead of early 2019 as previously expected. Notably, bond yields have moved significantly lower since November, which should feed through into lower mortgage rates.
Strong condo price growth over the last 2 years: has caused relative price gaps between single-family homes and condos to narrow significantly. This provides a window for move-up buyers to trade into larger units, thereby helping resale activity.