“High home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today” ~ Ashley Smith, REBGV President
North Vancouver detached market was a sellers’ market in May. Opens picked up for the late blooming Spring market, the sales ratio is up, inventory is moving and there were even a few sales slightly above asking. On average, most homes are selling for nearly 6 per cent below list. Sellers in Lynn Valley, Westlynn, Edgemont and Blueridge did well last month while buyers found good opportunities in Dollarton. On average, it took 37 days to sell a home in May. The sweet spot for sales was between $1,000,000 and $1,500,000.
The REBGV stated that, “the MLS® Home Price Index2 composite benchmark price for all residential homes in Metro Vancouver is currently $1,006,400. This represents an 8.9 per cent decrease over May 2018, a 3.4 per cent decrease over the past six months, and a 0.4 per cent decrease compared to April 2019”.
The Bank of Canada maintained it’s overnight rate last week. The Bank’s April Monetary Policy Report indicates that the slowdown of late 2018 and the start of 2019 will be followed by a pick up at the beginning of the second quarter. Housing is expected to stabilize nationally while certain regions will experience decline. Job growth is expected to continue while consumer spending and export predicted to fair well going forward. Read more on Sabeen’s blog here.
“Whether you’re a buyer looking to make an offer or a seller looking to list your home, getting your pricing right is the key in today’s market,” Smith said. “To be competitive, it’s important to work with your local REALTOR® to assess and understand the latest trends in your neighbourhood and property type of choice.”
After analyzing theREBGV stats, the North Vancouver market experienced price declines from January to May. The aggregate median price of a detached home decreased 9.6 per cent to $1,558,000 from the same time last year. Meanwhile, the aggregate median price of a condominium decreased 8.2 per cent to $615,000 from 2018. The median price of a townhome increased 1.2 per cent to $1,010,000 from the same period in 2018. The decline increased slightly for detached homes while the decrease for condos shrank.
The North Van Detached is currently in a sellers’ market position with 24 per cent of homes selling and 76 per cent of homes not selling. The homes that sold were priced appropriately for the market and demonstrated value. Price is paramount. Declining markets cost sellers dearly when their home is not priced correctly. The longer the home is on the market the lower the value.
As long as you are buying and selling in the same market, the outcome is relative. Markets go up and down. 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.
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Now, lets get to the numbers…
The MLS® Home Price Index composite benchmark price for all residential properties in North Vancouver is currently $1,038,500. This represents a decline of 9.5 per cent from the MLS® HPI over the last year but an increase of 7 per cent over the last 3 years, 52.1 per cent over the last 5 years and 85.7 per cent over the last 10 years.
There were 105 detached sales in May 2019, less than the 90 detached sales recorded in May 2018. The benchmark price for detached properties was $1,508,300, demonstrating an 11.1 per cent decrease from May 2018. This represents a decline of 4 per cent over the last 6 months and a decline of 6.8 per cent over the last 3 years, an increase of 49.5 per cent over the last 5 years and an increase of 92.2 per cent over the last 10 years.
The detached market is a balanced market with a sales ratio of 23 per cent and a build up of over 4 months worth of inventory. This tells us that 2 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 37 days compared to May 2018 at 28 days. Homes are selling on average for 94.1 per cent of list price. The detached market has been building steadily since December 2018. The inventory is on par with April. Seasonally, the inventory declines over the summer.
North Vancouver saw 106 apartment sales in May 2019. The benchmark price of an apartment property is $616,500, an 8.8 per cent decrease from May 2018’s benchmark of $678,000. This represents a decline of 2.5 per cent over the last 6 months but an increase of 29.4 per cent over the last 3 years, an increase of 55.2 per cent over the last 5 years and an increase of 77.4 per cent over the last 10 years.
The condo market is a sellers’ market with a sales ratio of 25 per cent and a build up of 4 months worth of inventory. The average condo listing sat on the market for 31 days. Condos are selling for 4 per cent less than list. 2.5 out of 10 sellers priced their condos correctly while 7.5 sellers out of the 10 did not.
Attached property sales in May 2019 totalled 45, an decrease from the 31 sales in May 2018. The benchmark price of a North Vancouver townhome property is $953,200, which represents a 7.9 per cent decrease from May 2018. This represents a decline of 6.1 per cent over the last 6 months, an increase of 13.1 per cent over the last 3 years, an increase of 55 per cent over the last 5 years and an increase of 84.8 per cent over the last 10 years.
The attached market is in a sellers’ market position with a sales ratio of 30 per cent and a build up of 2 months worth of inventory. The average attached listing sat on the market for 33 days compared to May 2018 at 11 days. Attached properties are selling for 4.2 per cent below list and only 3 townhome sellers out of 10 priced their homes appropriately for the market.
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Data courtesy of the REBGV, BCREA and SnapStats®