Vancouver real estate definitely isn’t ending 2016 the way it started. The latest report from the Real Estate Board of Greater Vancouver (REBGV) didn’t even try to sugar coat it. The newest stats from REBGV show lower prices, lower sales, and a significantly lower absorption rate from last year.
Prices Are Dropping
The benchmark average price across the Greater Vancouver Region (GVR) remained high, but is starting to show declining interest. The average composite dropped 1.2% from last month to $908,300. The $11,000 decline is somewhat softened by the fact that prices are still 20.5% higher than last year. Homes are still expensive, but speculators appear to be letting them go for less.
Sales Are Declining
Sales in the GVR declined across the board, and there’s no other way to read that. November saw 2,214 sales – a 0.9% decrease from the month prior. As large of a drop as that is, it’s a 37.2% decrease from the same time last year. It’s unclear how much of declining sales are attributed to environmental market changes, or if buyers are experiencing price exhaustion. Either way, buyers appear to be taking a wait and see approach.
Absorption Is Higher Than Last Year
Absorption of new listings had a minor uptick, but still remains much lower than it was at this time last year. The absorption rate climbed 2 percentage points from October to 26.4%. Anything above 20% is considered a seller’s market, and generally prices should increase. However, it is a 39% decrease from the same time last year – so it probably feels like the sky is falling to the real estate industry. The lower the absorption rate, the higher the inventory build.
Since Vancouver real estate hasn’t been driven by fundamentals, minor changes in indicators might provide major swings in opinion. This report comes just a few days after BCREA released their projection for a significant decline for home values in the GVR. We’ll break down the different segments of the market in separate reports. Like us on Facebook to be notified when the next report is released.