Greater Vancouver Detached Real Estate Sales Rise As Prices Fall To 2016 Levels

Greater Vancouver’s detached real estate market is seeing improvements, just not in prices right now. Real Estate Board of Greater Vancouver (REBGV) data shows prices are still falling in August. The decline in prices came, even though sales made a double digit surge and inventory fell.

Greater Vancouver Detached Real Estate Prices Fall Further

Greater Vancouver detached real estate prices are still falling, especially in the City of Vancouver. REBGV data shows the typical, or benchmark, detached home cost $1,406,700 in August, down 9.8% from last year. In the City of Vancouver, Vancouver East saw the detached benchmark fall to $1,346,500, down 11.4% from last year. Vancouver West fell to $2,880,800, down 12% from last year. Not quite affordable by any measure, but these are fairly substantial discounts.

Greater Vancouver Detached Benchmark Price

The price of a typical detached home across the Greater Vancouver Real Estate Board, in Canadian dollars.

Source: REBGV, Better Dwelling.

The rate of growth is improving, but still negative. The 9.8% decline over the past year is the third consecutive month rate of growth improved. Even though there are some improvements, prices have dropped 13.0% from the all-time high. The typical home is down more than $200,000 from the peak, and back to March 2016 levels.

Greater Vancouver Detached Benchmark Percent Change

The 12 month percent change of a typical detached home across the Greater Vancouver Real Estate Board.

Source: REBGV, Better Dwelling.

Detached Sales Rise Over 24%, But Still Much Slower Than Usual

Greater Vancouver detached sales made a massive improvement from last year, but that doesn’t say much.  REBGV data shows 704 sales in August, down 15.6% from the month before. This represents an increase of 24.5%, when compared to the same month last year. The massive increase still doesn’t place the market where it should be. Sales are still 26.4% below the 10-year median for August.  Over the past 10 years, only two months came in lower – 2012, and last year. Things are better, but far from normal.

Greater Vancouver Detached July Sales

The number of detached homes sold in the month of July, across Greater Vancouver.

Source: REBGV, Better Dwelling.

Greater Vancouver Detached Inventory Falls Over 5%

The number of new listings for Greater Vancouver’s detached real estate made a sharp decline. REBGV data shows 1,295 new listings in August, down 18.2% from the month before. This represents a drop of 11.5% from the same month last year. Once again, the monthly decline is seasonally expected – but the annual decline is not.

Greater Vancouver Detached Sales Vs. New Listings

The total number of detached sales, compared to the number of new detached listings per month.

Source: REBGV, Better Dwelling.

The number of total listings for detached homes also fell across Greater Vancouver. REBGV data shows 5,904 active listings in August, down 5.2% from the month before. This represents a decline of 5.0% compared to the same month last year. You probably could have guessed this one, since sales were much higher than new listings.

The improved sales to actives listings ratio (SALR) is expected to firm prices. The SALR for detached homes in REBGV is 12% for August, up from 9.2% last year. It’s considered a buyer’s market when the ratio is below 12% – and prices generally fall. It’s a seller’s market when the ratio rises 20% and above, and prices are expected to rise. It’s a balanced market between 12% and 20%, and considered priced right. Currently it’s on the cusp of buyer’s and balanced.

Greater Vancouver’s detached real estate market is seeing a lot of improvement from last year. However, last year was such a crappy year, a double digit climb in sales and a drop in inventory couldn’t do much. Prices are still falling, but they’re falling a slower pace. Some signs show the bottom might be in, but others still indicate the market may not be ready to accept this.

Like this post? Like us on Facebook for the next one in your feed.