Vancouver

Greater Vancouver Real Estate Hits 19 Year Low For Sales, Inventory Rises Over 25%

Vancouver real estate’s rough patch became a little more bumpy last month. Real Estate Board of Greater Vancouver (REBGV) numbers show prices made another decline in June. The market experienced a drop in prices, sales plummeting, and inventory soaring to a multi-year high.

Vancouver Real Estate Prices Fall To Lowest Level Since May 2017

The price of a typical, or benchmark, home is still falling in Greater Vancouver. REBGV reported a benchmark of $998,700 in June, down 9.6% from last year. In the City proper, Vancouver East fell to $1,039,200, down 9.8% from last year. Vancouver West fell to a benchmark of $1,216,100, down 12.3% from last year. These are pretty steep losses, and the direction of the trend isn’t exactly pretty either.

Greater Vancouver Composite Benchmark Price

The price of a typical home across Greater Vancouver, in Canadian dollars.

Source: REBGV, Better Dwelling.

The growth rate, or lack of growth rate, is still deteriorating for prices. A typical Greater Vancouver home is down $105,700 dollars from the peak price reached in June 2018. The 9.6% decline is also larger from the month before, with prices at the lowest level since May 2017. The decline is the largest single year drop for prices since June 2009. Recession based price movements, without the recession.

Greater Vancouver Composite Benchmark Price Change

The annual percent change of a typical home across Greater Vancouver.

Source: REBGV, Better Dwelling.

Greater Vancouver Real Estate Sales Had The Worst June In 19 Years

Greater Vancouver real estate sales are still on the decline. REBGV reports there were 2,077 salese in June, down 21.3% from the month before. This represents a 14.4% decline compared to the same month last year. Overall, sales are down 34.7% for the 10-year average of June sales. That makes this the worst June since 2000. Not a lot of people are into catching falling knives it would appear.

Greater Vancouver Inventory Surges 25% Higher

The number of new listings are on the decline across Greater Vancouver. REBGV reported 4,751 new listings in June, down 18.9% from the month before. This represents a 10% decrease compared to the same month last year. The decline in new listings is smaller than that of sales, causing total inventory to still rise.

Greater Vancouver Composite Sales Vs. Listings

The number of homes sold vs total inventory in Greater Vancouver.

Source: REBGV, Better Dwelling.

Declining sales over the past few months are sending inventory to levels not seen for half a decade. REBGV reported 14,968 active listings in June, up 1.9% from the month before. This represents a 25.3% increase compared to the same month last year. This is the most inventory Greater Vancouver has seen since October 2014. It’s also the most June inventory since 2014 as well.

Greater Vancouver real estate is seeing prices drop, fewer sales, and inventory rise. Prices are now back to where they were 2 years ago, and the declines have been getting larger. Sales dropped to the lowest level in 20 years, despite financing becoming cheaper. Inventory, which has been notoriously scarce over the past few years, is finally starting to climb. Not a great time to be an owner, but things are starting to look interesting for buyers.

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10 Comments

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  • Reply
    Leo 3 months ago

    haha. On MSM they said “caught between a buyer’s and seller’s market. Hilarious. Which part of losing $4,375 per month in asset value, plus financing, taxes, and maintenance is in favor of the buyer?

  • Reply
    s2u 3 months ago

    Looking for that pump and dump as the dummies who don’t pay attention jump into Vancouver stagnant market ‘catching deals’….. then look out beloooow.

    • Reply
      Ryan Labrete 3 months ago

      If you can afford the purchase, it’s not really that big of a deal, right?

  • Reply
    Ryan Labrete 3 months ago

    Chinese property investors aren’t even interested in New York, New York real estate.

    https://qz.com/1652388/chinese-real-estate-buyers-are-leaving-new-york-in-droves/

    • Reply
      Trader Jim 3 months ago

      Obviously if Chinese investors don’t want Vancouver real estate, what’s the point of locals buying it? lol.

    • Reply
      CanadaSuckjs 3 months ago

      Manufacturing has been moved to China a long time a ago. China manufacturing might be too expensive. Rumors are that companies are now looking at south east Asia as the new manufacturing hub: Cambodian, Thailand, Vietnam. Does not make sense to invest in Whites Western nations. The manufacturing actions and the wealth is now in Asian. It make sense to moves your money away from Whites western nations into Asia. This is what Trump is trying to fight with its tariff. He sees that the West is losing its influence and wealth.

    • Reply
      s2u 3 months ago

      they’re not interested anywhere. Chinese investors are net sellers at this point, especially with monetary restrictions from the mainland.

      “A recent report by Cushman & Wakefield cited a “frenzy of disposal activity”, with mainland Chinese investors putting overseas property worth an estimated $12bn up for sale. Nearly two-thirds of Chinese respondents told Cushman that it had become either impossible or extremely difficult for them to transact outside the country.”

  • Reply
    Michael 3 months ago

    Hopefully policy makers keep their foot on the neck of dirty money coming into BC and Canada.

    They should also ignore cries from the real estate sector to remove the stress tests for insured mortgages.

    If the real estate sector wants to leverage up first time buyers, they can do it without tax payer backstops.

  • Reply
    Chuck 3 months ago

    Also interesting to note that population has also increased 35% since 2000. Also it is wild comparing with June 2016 – sales are less than half whereas new listings are nearly double.

  • Reply
    Chester Pape 3 months ago

    Excess supply = affordable prices for rentals and homes for Canadians

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