Every year spring brings increased activity to the real estate market as the weather improves and people start to get the itch to make a move or a change. This year I certainly expect to see that happen again, but the route buyers and sellers take to get there will be a little different. Starting in 2018 we started to see signs that the market was shifting from a seller’s market to a buyer’s market, and the stats for the first two and a half months of 2019 definitely show that things have shifted into more of a buyer’s market.
The ratio of listings to sales is 10:1 for detached homes in North Vancouver. Condos and town houses are currently sitting at 5:1, which is more of a balanced market. Across all of Metro Vancouver the statistics show a ratio of 12:1 for detached homes, and again for condos and town houses, it’s more balanced at 6:1.
The reason we are seeing more activity with condos and town houses is due to the fact that they are relatively affordable compared to single family homes and there are many different types of buyers that would be interested in purchasing a condo or a town home. Single family homes are typically being bought by families or buyer’s aged 35 – 50, which is a relatively small pool of people.
So is it a good time to buy or sell? The quick answer is yes, but everyone’s situation is different so it definitely depends on what your goals are. The reality is there are great opportunities right now in all sectors of the market. Greater Vancouver is essentially on sale right now, which is extremely rare when you look back over the years. For single family home owners, the good news is that the equity that they have built up over many years is very much still there. Prices have dropped an average of 10% for detached homes in Metro Vancouver over the past year, but the average home is still worth well over $1,400,000. Condos and town houses have seen modest declines in value, but overall prices have held relatively well. It is also very interesting to note that developers are offering promotions and incentives in the pre-sale world that were unheard of a year or two ago.
I have attached the latest statistics package released by the Real Estate Board of Greater Vancouver, for your information. Each municipality is looked at as a whole, but if you have questions about your specific neighbourhood just let me know and I can do a deep dive into the activity that might be more relevant to you.
My sense is that we will be in for a fairly slow period for the rest of 2019 as buyers and sellers adjust to the new market. I am seeing plenty of activity at open houses and around the office suggesting that there is activity taking place with buyers and sellers looking for opportunities. It is very important to remember that there are outstanding strategies that can be employed for both buyers and sellers, that will allow for great purchases to be made and outstanding sale prices to be achieved, given current conditions. The market is slower in terms of sales, but the sky is not falling and the total number of property sales have not ground to a halt. Plenty of great homes are still selling in this market and I have seen numerous great buys in the past few months.
If you have any questions about how this market affects you or how you can make a move up or down, please don’t hesitate to call me anytime.
I have four fantastic properties for sale right now, and will be busy holding open houses this weekend. For more information on these wonderful homes, please visit www.parminter.ca for all of the details.
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