Home buyers and sellers were less active as Metro Vancouver real estate market dropped throughout first quarter of 2018.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,517 in March 2018, a 29.7% decrease from the 3,579 sales recorded in March 2017, and a 14% increase compared to February 2018 when 2,207 homes sold.
Last month’s sales were 23% below the 10-year March sales average.
There were 6,542 home sales on the Multiple Listing Service® (MLS®) in Metro Vancouver during the first quarter of 2018, a 13.1% decrease from the 7,527 sales over the same period last year. This represents the region’s lowest first-quarter sales total since 2013.
“We saw less demand from buyers and fewer homes listed for sale in our region in the first quarter of the year,” Phil Moore, REBGV president said. “High prices, new tax announcements, rising interest rates, and stricter mortgage requirements are among the factors affecting home buyer and seller activity today.”
There were 4,450 detached, attached and apartment properties newly listed for sale in Metro Vancouver in March 2018. This represents a 6.6% decrease compared to the 4,762 homes listed in March 2017 and a 5.4% increase compared to February 2018 when 4,223 homes were listed.
There were 12,469 homes listed for sale in Metro Vancouver during the first quarter of 2018, a 0.8% decrease from the 12,568 sales over the same period last year. This represents the region’s lowest first-quarter new listings total since 2013.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,380, a 10.5% increase compared to March 2017 (7,586) and a 7.1% increase compared to February 2018 (7,822).
“Even with lower demand, upward pressure on prices will continue as long as the supply of homes for sale remains low,” Moore said. “Last month was the quietest March for new home listings since 2009 and the total inventory, particularly in the condo and townhome segments, of homes for sale remains well below historical norms.”
For all property types, the sales-to-active listings ratio for March 2018 is 30%. By property type, the ratio is 14.2% for detached homes, 39.9% for townhomes, and 61.6% for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,084,000. This represents a 16.1% increase over March 2017 and a 1.1% increase compared to February 2018.
Sales of detached properties in March 2018 reached 722, a decrease of 37% from the 1,150 detached sales recorded in March 2017. The benchmark price for detached properties is $1,608,500. This represents a 7.4% increase from March 2017 and a 0.4% increase compared to February 2018.
Sales of apartment properties reached 1,349 in March 2018, a decrease of 26.7%compared to the 1,841 sales in March 2017. The benchmark price of an apartment property is $693,500. This represents a 26.2% increase from March 2017 and a 1.6% increase compared to February 2018.
Attached property sales in March 2018 totalled 446, a decrease of 24.1% compared to the 588 sales in March 2017. The benchmark price of an attached unit is $835,300. This represents a 17.7% increase from March 2017 and a 2% increase compared to February 2018.
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