Following the implementation of stricter mortgage rules in January 2018, Metro Vancouver home sales continued to soften in April, while listings increased.
A total of 2,579 homes changed hands in the region last month, down 27 per cent from the 3,553 sales recorded in April 2017, according to the latest data from the Real Estate Board of Greater Vancouver (REBGV), published today.
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“Market conditions are changing. Home sales declined in our region last month to a 17-year April low and home sellers have become more active than we’ve seen in the past three years,” says Phil Moore, REBGV president, in a press release.
Last month’s sales total was 22.5 per cent below the 10-year April sales average.
According to Moore, the mortgage requirements, among other factors, have diminished home buyers’ purchasing power in Metro Vancouver.
Here are 11 facts that show how Metro Vancouver’s housing market continued to slow in April.
1. Although Metro Vancouver saw fewer home buyers in April, there were more home sellers in the market. A total of 5,820 properties (detached, attached and condo) were newly listed for sale in April — a roughly 19 per cent increase compared to the 4,907 homes listed a year ago.
2. In April, a total of 9,822 properties were listed for sale, up roughly 26 per cent compared to 7,813 units a year ago. “Home buyers have more breathing room this spring. They have more selection to choose from and less demand to compete against,” says Moore.
3. For all property types, the sales-to-active listings ratio for April 2018 was 26 per cent. REBGV says that downward pressure on prices generally occurs when the ratio falls below the 12 per cent mark for a prolonged period, while home prices often experience upward pressure when it exceeds 20 per cent over several months.
4. Broken down by property type, the ratio was 14 per cent for detached homes, 36 per cent for townhomes and roughly 47 per cent for condos.
5. Although overall sales declined year-over-year, the benchmark price for all homes in the region hit $1,092,000 in April, up 14 per cent from April 2017 and a 0.7 per cent increase compared to March 2018.
6. In the detached segment, a total of 807 homes sold in the region last month — a 33 per cent decline from the 1,211 detached sales recorded in April 2017.
7. The benchmark price of a detached home was $1,605,800 in April 2018, up 5 per cent from April 2017.
8. Condo sales totaled 1,308 in April 2018, a 24 per cent drop from 1,722 sales in April 2017.
9. As condo sales declined year-over-year, the benchmark price of a condo hit $701,000, up roughly 24 per cent from a year ago.
10. In the attached segment, a total of 464 units sold last month, down 25 per cent from the 620 sales in April 2017.
11. The benchmark price of an attached unit was $854,200 — a roughly 18 per cent increase from the same period last year.