From the REBGV, “Home buyer demand picked up across Metro Vancouver* last month, making July, a traditionally quieter month in real estate, the second highest selling month so far this year.”
And, “The slowdown that initially began in the British Columbia lower mainland’s most expensive trading areas, Vancouver and the region’s North Shore, has moved to the relatively affordable suburbs, as the policy-driven housing downturn nears the three-year mark,” says Phil Soper, president and CEO of Royal LePage in a release.
North Vancouver detached market was a balanced market in July. On average, most homes are selling for nearly 7 per cent below list. Sellers in Blueridge, Boulevard, Central Lonsdale and Lynn Valley did well last month while buyers found good opportunities in Deep Cove, Dollarton and Pemberton Heights. On average, it took 48 days to sell a home in June. The sweet spot for sales was between $1,000,000 and $1,500,000.
The REBGV stated that, “The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $995,200. This represents a 9.4 per cent decrease over July 2018 and a 0.3 per cent decrease compared to June 2019.”
Now that the dust has settled, we can see the impact on sales caused by the onerous mortgage stress test. BCREA reported that sales in 2018 would have been 10 per cent higher without the mortgage stress test. The BoC lowered their qualifying rate to 5.19 per cent from 5.34 percent. Read more about this in Business in Vancouver’s article. To understand the impact this is having on buyer financing, call us.
Another thing that came to light in July, we are seeing an all time high with reverse mortgages topping out at $3.7 billion. Find out more here in Better Dwellings recent article. To learn more about reverse mortgages, get in touch. We know the best people for the best advice.
After analyzing theREBGV stats, the North Vancouver market experienced price declines from January to June. The aggregate median price of a detached home decreased 8.9 per cent to $1,547,500 from the same time last year. Meanwhile, the aggregate median price of a condominium decreased 7.4 per cent to $616,250 from 2018. The aggregate median price of a townhome is $1,005,000 consistent with 2018. The decline decreased slightly for detached homes and condos.
The North Van Detached market is currently hovering just below a sellers market (21 per cent) with 19 per cent of homes selling and 81 per cent of homes not selling. Homes that are priced right for the market and demonstrate value are selling. “When sellers price their homes reflective of the new market that we’re in today we’re actually seeing sales,” Adil Dinani says. We couldn’t agree more. Inventory is modest and there is not much to choose from.
Whether the market is high or low, as long as you are buying and selling in the same market, the outcome is relative. On a positive note, our economy is thriving, interest rates are low and so is unemployment. “Those looking to buy today continue to benefit from low interest rates, increased selection, and reduced prices compared to the heated market a few years ago.” ~ Ashley Smith, REBGV President
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The MLS® Home Price Index composite benchmark price for all residential properties in North Vancouver is currently $1,028,300. This represents a decline of 9.2 per cent from the MLS® HPI over the last year and a decline of 0.7 per cent over the last 3 years, up 49.4 per cent over the last 5 years and up 77.2 per cent over the last 10 years.
There were 76 detached sales in July 2019, higher than the 52 detached sales recorded in July 2018. The benchmark price for detached properties was $1,488,600, demonstrating an 2.4 per cent decrease from June 2019. This represents a decline of 9.9 per cent over the last year and a decline of 13.3 per cent over the last 3 years, an increase of 44.8 per cent over the last 5 years and an increase of 82.6 per cent over the last 10 years.
The detached market is a balanced market with a sales ratio of 19 per cent and a build up of nearly 5 months worth of inventory. This tells us that nearly 2 out of 10 homes were priced properly while 8 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 48 days on par with July 2018 at 44 days. Homes are selling on average for 93 per cent of list price. The detached inventory peaked in May 2019 and has been declining since. We believe this is due to summer months and expect this trend to continue into August and begin to build again in September.
North Vancouver saw 96 apartment sales in June 2019. The benchmark price of an apartment property is $554,600, a 9.1 per cent decrease from July 2018. This represents a decline of 0.4 per cent over the last 6 months but an increase of 18.9 per cent over the last 3 years, an increase of 54.2 per cent over the last 5 years and an increase of 70.5 per cent over the last 10 years.
The condo market is a seller’s market with a sales ratio of 24 per cent and a build up of over 4 months worth of inventory. The average condo listing sat on the market for 32 days compared to 25 days in July 2018. Condos are selling for 95.6 per cent of list price. Just over 2 out of 10 sellers priced their condos correctly while nearly 8 sellers out of the 10 did not.
Attached property sales in June 2019 totalled 28, an increase from the 19 sales in July 2018. The benchmark price of a North Vancouver townhome property is $944,100, which represents an 8.6 per cent decrease from July 2018. This represents a decline of 3.7 per cent over the last 6 months, an increase of 5.4 per cent over the last 3 years, an increase of 55.9 per cent over the last 5 years and an increase of 77 per cent over the last 10 years.
The attached market is in a seller’s market position with a sales ratio of 22 per cent and a build up of 4.5 months worth of inventory. The average attached listing sat on the market for 40 days compared to July 2018 at 22 days. Attached properties are selling for 4.6 per cent below list and just over 2 townhome sellers out of 10 priced their homes appropriately for the market.
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