Adlaw Market Update – Metro Vancouver July 4, 2018
The market is taking on a new face, and it is not a happy one for homeowners. The recent surge of supply and lowering demand is providing excellent opportunities for those looking to buy, or buy up (meaning if you wanted to buy a bigger, nicer home in a more desirable area – now is your chance!). One important ratio to understand is the sales to listing ratio. This ratio tells a story. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 percent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 percent over several months. Over the last 10 years, it has been a seller’s market with typical ratios in the 20-50% category. Anything over 25% is a-typical and unsustainable, as well as anything below 5%.
- Define a buyer’s market using the sales / listing principle?
- Define a seller’s market using the sales / listing principle?
OK – no more hard-hitting questions. You did well. Good job!
METRO VANCOUVER
Detached Homes – 11.6% — Buyer’s market! Sales volume is down 42% compared to June 2017.
Apartment – 33.4% — Seller’s market! Sales volume is down 34.9% compared to June 2017.
Townhomes – 24.9% – Seller’s market! Sales volume is down 37.3% compared to June 2017.
Sales volume is down 37.7% from June 20118 compared to June 2017. Overall sales volume is 28.7% below the 10-year average.
What does this mean about prices? The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,093,600. This represents a 9.5 percent increase over June 2017 and is virtually unchanged from May 2018. So prices are not necessarily falling, but with these supply and demand characteristics currently being witnessed, if they continue, a lowering of housing prices is inevitable.
Cheers!
Adam Lawrenson, AACI, Owner of Adlaw Appraisals Ltd.
Adlaw Appraisals Ltd. info@adlawappraisals.com | Adlaw Appraisals Ltd. | 604-809-8506