Greater Vancouver Housing Market Update May 2017

MARKET UPDATE BY GREATER VANCOUVER REALTOR JAMES GARBUTT

May is here and it’s time for a Greater Vancouver housing market update.

It’s been a bit of a crazy year, and between the snow and the rain, the weather has been awful and it’s held back the sales a little bit; the number of sales are down considerably compared to 2016. As of April 26, 2017, in Vancouver the number of sales of detached home is 701. Now compared to the same period of time last year, it was 1473–just under half the number of sales.

In Burnaby, we see the biggest effect: 267 compared to 1400 last year. In the Tri-Cities, 469 compared to 1098 sales. Overall, the trend is that the number of sales is down considerably and, in most cases, less than half of what they were last year. Mind you, last year was insane and this year we’ve seen some legitimately awful weather.

In terms of prices, let’s look at the sales ratio. To get a good indication of how the market doing, we like to look at the sales ratio. The sales ratio is the sales-to-active listings ratio or the number of sales that take place in a given month divided by the number of active listings. A seller’s market is considered to have a sales ratio of 21% or higher.

In the last 60 days, the sales ratio for detached homes in Vancouver is 15%; that means that of 10 active listings, 1.5 of them are selling in a given month. That’s a low figure, but when you isolate listings at $1.5 million or less, that figure goes from 15% to 38%–a strong seller’s market. When you isolate that figure from $3 million plus it goes from 15% to 9%. So the high end is really what’s dragging down the sales ratio.

And similar stats are in Burnaby, where the sales ratio is 21%, but under $1.5 million, it’s 53%, and at $2 million, it’s 9%. So the high end market is what’s struggling right now, but the entry points are quite active—they’re hot.

Some fun sales of the year:

The highest sale to date was on Point Grey Road and it sold for $17.6 million, this is from the REBGV stats. In the Tri-Cities, the highest sale was $3.4 and it was ‘Anmore‘, which is, in my opinion, one of Vancouver’s best kept secrets.

In conclusion, the weather has held the market back. I expect these sales numbers to improve in the coming months, more so in the seller’s favour. The weather’s going to get better, a lot of homes will be coming on the market and I think it’s going to be a very active time. However, a lot of people are overpricing their homes–$2.5 million homes are being priced at $3 million, or $2 million dollar homes at $2.5 million, and that is proving not to work right now. You could get away with it last year, because the market would climb until it reached that point, but this year, it’s not. We’re seeing price points similar to last year in most areas and we’re seeing prices 20% above last year’s prices. So, there’s a big gap between list price and sale price and that’s holding back the sales ratios in a lot of these places.

If you’d like my opinion, if you’re selling a higher end product:

1. Don’t list it if you’re not serious about selling.

2. Price it properly.

On the buy side, I think it’s a great time to buy higher end product, but I just don’t think the seller’s are willing to come down to your price points yet. On the sell side, now is the sweet spot to sell detached homes. May, June, July, are active months, so take advantage.

Full Real Estate Board of Greater Vancouver Stat Package for April 2017

If you’re thinking of buying, selling or just curious about the value of a property, contact us today!

Contact Us Today

James Garbutt
Greater Vancouver Realtor

CLICK HERE FOR YOUR MAY 2017 GREATER VANCOUVER CONDO MARKET UPDATE

New Rules for Contract Assignments (Real Estate in BC)

Assignments are getting a lot of scrutiny in the Greater Vancouver real estate market. I’ve had more people ask me about ‘shadow flipping’ in the past months than in the past seven years.
But what is an assignment? And how can sellers protect themselves from being exploited by an assignment resale?
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An assignment is when a purchaser and a seller enter into a firm and binding contract that assigns the sale to another buyer before the completion date of the initial sale.
There’s nothing wrong with an assignment. But there have been cases of abuse; agents with an eye to a profitable assignment have deceived sellers by undervaluing their property or not even offering it up for sale on the open market.
The BC government has introduced new legislation to reign in unscrupulous assignments. It includes the addition of two new clauses in contracts that stipulate the sale can’t be assigned without the written consent of the original seller and any profits realized by an assigned sale would go to the original seller.  Here are the clauses:

  1. This contract must not be assigned without the written consent of the seller; and
  2. The seller is entitled to any profit resulting from an assignment of the contract by the buyer or any subsequent assignee.

*With the exception that the buyer may instruct their agent not to include these clauses in the offer.
Sellers can also take steps to protect themselves. Hire an agent based on the recommendation from people you trust. Don’t take an offer on your property without adequate market exposure, like listing it for at least a week, holding an open house. Accept only set offers presented in person.
In the eight years I’ve been a real estate agent in Greater Vancouver, I’ve never sold an assignment. But there are a few bad apples out there.
 

For more information click here!

#117- 836 12th St New Westminster London Place Condos (Moody Park)


LONDON PLACE – Spacious 1 bed/1bath corner unit w/ 2 patios! Completely renovated throughout inluding new flooring, moulding, paint, and light fixtures. 2 great patios (Kitchen patio faces south with river views & Living Room patio facing east with great light.) as well as renovated kitchen with all new appliances, counters, tile backsplash, and cabinets. Bathroom includes all new jacuzzi tub, tile toilet, mirror, vanity, and sink. Suite has in-suite storage (den) as well as storage locker and 1 parking stall.
15 min walk to Moody Park, Royal City Shopping Centre, restaurants, and more.
For complete listing click here.
MLS Feature Sheet 117 836 12th St

May 2012 Real Estate Board of Greater Vancouver Stats.

Spring activity remains balanced in the Greater Vancouver housing market.

VANCOUVER, B.C. – June 4, 2012 – The number of properties listed for sale continued to increase in the Greater Vancouver housing market in May. The number of sales decreased year over year, but remained relatively constant compared to recent months.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,853 on the Multiple Listing Service® (MLS®) in May 2012. This represents a 15.5 per cent decline compared to the 3,377 sales recorded in May 2011.
May sales were the lowest total for the month in the region since 2001 and 21.1 per cent below the 10-year May sales average of 3,617. However, sales have been constant throughout the spring months, with 2,874 sales in March and 2,799 sales in April.
“Home sellers have outpaced buyers in recent months, however, there continues to be an overall balance between supply and demand in our marketplace,” Eugen Klein, REBGV president said.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 6,927 in May 2012. This represents a 16.8 per cent increase compared to May 2011 when 5,931 homes were listed for sale and a 14.4 per cent increase compared to April 2012 when 6,056 homes were listed for sale on the region’s MLS®.
Last month’s new listing total was 15.3 per cent above the 10-year average for listings in Greater Vancouver for May.
At 17,835, the total number of homes listed for sale on the region’s MLS® increased 7.9 per cent in May compared to last month and increased 21 per cent from this time last year.
“Our sales-to-active-listing ratio sits at 16 per cent, which is indicative of balanced market conditions,” Klein said. “As a result of this stability, home prices at the regional level have seen little fluctuation over the last six month.”
The MLS® HPI benchmark price* for all residential properties in Greater Vancouver currently sits at $625,100, up 3.3 per cent compared to May 2011 and up 2.4 per cent over the last three months. The benchmark price for all residential properties in the Lower Mainland** is $558,300, which is a 3 per cent increase compared to May 2011 and a 2.3 per cent increase compared to three months ago.
Sales of detached properties on the MLS® in May 2012 reached 1,180, a decline of 24.8 per cent from the 1,570 de- tached sales recorded in May 2011, and a 6.1 per cent decrease from the 1,256 units sold in May 2010. The benchmark price for detached properties increased 5.1 per cent from May 2011 to $967,500.
Sales of apartment properties reached 1,156 in May 2012, a decline of 5.9 per cent compared to the 1,228 sales in May 2011, and a decrease of 14.6 per cent compared to the 1,354 sales in May 2010.The benchmark price of an apart- ment property increased 1.7 per cent from May 2011 to $379,700.
Townhome property sales in May 2012 totalled 517, a decline of 10.7 per cent compared to the 579 sales in May 2011, and a 5.3 per cent decrease from the 546 townhome properties sold in May 2010. The benchmark price of a
townhome unit increased 0.9 per cent between May 2011 and 2012 to $470,000.
Click here to download the full package REBGV Stats Package May 2012

Increased selection helps maintain market balance in GVRD for March 2012

VANCOUVER, B.C. –April 3, 2012- Home sales in March trended below the 10-year average in Greater Vancouver while home listing activity outpaced what’s typical for the month.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,874 on the Multiple Listing Service® (MLS®) in March 2012. This represents a 12.9 per cent increase compared to the 2,545 sales recorded in February 2012, a decline of 29.6 per cent compared to the 4,080 sales in March
2011 and an 8.4 per cent decline compared to the 3,137 home sales in March 2010. March sales in Greater Vancouver were the second lowest total for the month in the region since 2002 and were 16.8 per cent below the 10-year sales average for the month.
FOR FULL STATS PACKAGE CLICK ON THE LINK BELOW:
March Real Estate Board Stats

SOLD! #3204 240 Sherbrooke St., New Westminster


Copperstone at the centre of the Lower Mainland.  This immaculate 2bdrm 2bthrm NW 1034 SF corner suite incl: laminate flooring, crown mouldings, S/S appliances, upgraded paint, lights and fixtures, in-suite laundry and security system, and more.  Sit and enjoy the afternoon sun on the private covered 9’x11′ balcony.  Spacious living areas and open floor plan.  This unit faces NW onto the quiet treed courtyard with a glimpse of snow-capped mountains.  Walk to the trendy Sapperton area that boasts a Thrifty’s (open 24hrs), Starbucks, shops, bistros, boutique gift shop and spa, and bakeries… Close to freeway access and only a 3 minute walk to the skytrain. Built in 2008, 2-5-10 warranty, 2 parking, 1 locker, Pets & Rentals Welcome.