Policy regulators not economics have slowed the market. B20 Stress Test has had a strong impact on mortgage qualifications. BC labour market is strong. Interest rates down 3 points since 2018 and forecast to go lower in 2nd and 3rd quarter.
North Vancouver was a balanced market in March. Buyers were out looking last month. Subject to sale offers are normal but negotiations seem to be shifting as buyers who have been hibernating in rentals come to the table. Pent up buyer demand should mean a decent spring market. We even saw a home sell in multiples last week. Things seem to be heating up for spring.
The Federal government’s First Time Home Buyers Incentive, introduced in the 2019 Federal budget, isn’t expected to have a significant effect on our housing market as most buyers in our area will not qualify for the program.
“Housing demand today isn’t aligning with our growing economy and low unemployment rates. The market trends we’re seeing are largely policy induced,” Ashley Smith, REBGV president said. “For three years, governments at all levels have imposed new taxes and borrowing requirements on to the housing market.”
“What policymakers are failing to recognize is that demand-side measures don’t eliminate demand, they sideline potential home buyers in the short term. That demand is ultimately satisfied down the line because shelter needs don’t go away. Using public policy to delay local demand in the housing market just feeds disruptive cycles that have been so well-documented in our region.”
Across Canada, “We are expecting this to be a sluggish year overall in Canada’s residential real estate market, with the hangover from the 2018 market correction and weaker economic growth acting as a drag on home price appreciation, balanced by lower for longer interest rates,” said Phil Soper, president and CEO, Royal LePage. “There is a silver lining here. This slowdown gives buyers, and first-time buyers in particular, an opportunity to buy real estate in our country’s largest cities.”
The North Vancouver market experienced price declines in the first quarter. The aggregate median price of a detached home decreased 10.9 per cent to $1,550,000 from the same time last year. Meanwhile, the aggregate median price of a condominium decreased 11.6 per cent to $592,000 from 2018. The aggregate median price of a townhome decreased 1.5 per cent to $1,009,750 from the first quarter of 2018.
The best places to buy a detached home last month were Canyon Heights, Upper Lonsdale and Upper Delbrook. While the best neighbourhoods for detached sellers were Lynn Valley, Forest Hills and Deep Cove. On average, it took 35 days to sell a home in March and homes sold for 94 per cent of list price which on par with February. The sweet spot for sales was between $1,000,000 and $1,500,000 followed by $1,500,000 to $1,750,000. Still very little selling in the luxury market. We have watched some incredible luxury bargains trade hands. Call us if you are thinking of upgrading. The time is now.
The North Van Detached is currently in a balanced market position with 18 per cent of homes selling and 82 per cent of homes not selling. The homes that sold were priced appropriately for the market and demonstrated value. Price was paramount in the first quarter of 2019 as we were in a declining market. Declining markets cost sellers dearly when their home is not priced correctly. The longer the home is on the market the lower the value. If you want to be one of the 1.8 homes out of 10 that sell, call us! We will get you sold for top dollar in the least amount of time.
As long as you are buying and selling in the same market, the outcome is relative. Markets go up and down. While we do not expect to see the double-digit gains of the past few years, our economy is thriving, interest rates are low and so is unemployment. Plus, demand continues to exists – North Van is such a desirable place to live. Would you want to live anywhere else!?!
We are great at what we do because we are passionate about real estate and driven to do the best for you – our clients, family and friends. We love your referrals. Referrals and repeat clients are the biggest accolades we could ever receive. Relationships are the core of our business. You are our why!
Now, lets get to the numbers…
The MLS® Home Price Index composite benchmark price for all residential properties in North Vancouver is currently $1,018,100. This represents a decline of 9.2 per cent from the MLS® HPI over the last year but an increase of 16.9 per cent over the last 3 years, 55.9 per cent over the last 5 years and 90.6 per cent over the last 10 years.
There were 70 detached sales in March 2019, on par with the 65 detached sales recorded in March 2018. The benchmark price for detached properties was $1,502,600, demonstrating an 12.8 per cent decrease from March 2018. This represents a decline of 7.3 per cent over the last 6 months but an increase of 3.8 per cent over the last 3 years, an increase of 54.1 per cent over the last 5 years and an increase of 96.5 per cent over the last 10 years.
The detached market is a balanced market with a sales ratio of 18 per cent and a build up of nearly 6 months worth of inventory. This tells us that 1.8 out of 10 homes were priced properly. Nearly 8 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 35 days compared to March 2018 at 39 days and slightly faster than 47 days in February 2019. Homes are selling on average for 6 per cent less than list. The detached market has been building steadily since December 2018. Prices will go down if inventory builds over a sustained period of time.
North Vancouver saw 73 apartment sales in March 2019, a 37 per cent decrease compared to the 117 sales in March 2018. The benchmark price of an apartment property is $567,000, a 7 per cent decrease from March 2018’s benchmark of $609,900. This represents a decline of 4.8 per cent over the last 6 months but an increase of 35.9 per cent over the last 3 years, an increase of 57.3 per cent over the last 5 years and an increase of 83.2 per cent over the last 10 years.
The condo market is a slight seller’s market with a sales ratio of 21 per cent and a build up of almost 5 months worth of inventory. The condo inventory is building which will push prices down, if sales do not clear out the inventory. The average condo listing sat on the market for 35 days compared to the brisk market of March 2018 at 14 days. Condos are selling for 6 per cent less than list and 2 out of 10 condos sold.
Attached property sales in March 2019 totalled 21, an increase from the 29 sales in March 2018. The benchmark price of a North Vancouver townhome property is $952,700, which represents a 5.2 per cent decrease from March 2018. This represents a decline of 6.8 per cent over the last 6 months, an increase of 24.2 per cent over the last 3 years, an increase of 59.4 per cent over the last 5 years and an increase of 90.1 per cent over the last 10 years.
The attached market is in a balanced market position with a sales ratio of 17 per cent and a build up of nearly 6 months worth of inventory. The average attached listing sat on the market for 27 days compared to the faster market of March 2018 at 20 days. Attached properties are selling for 2.8 per cent below list and nearly 2 out of 10 townhomes sold.
Looking for more info? Call us, we are always happy to help.
Data courtesy of the REBGV and SnapStats®