“We’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver,” said Ashley Smith, REBGV president. “Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach.”
North Vancouver detached market was a balanced market in June. On average, most homes are selling for nearly 5 per cent below list. Sellers in Lynn Valley, Edgemont and Central Lonsdale did well last month while buyers found good opportunities in Pemberton Heights. On average, it took 36 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 $998,700. This represents a 9.6 per cent decrease over June 2018 and a 0.8 per cent decrease compared to May 2019.” And “Last month’s sales were 34.7 per cent below the 10-year June sales average. This is the lowest total for the month since 2000.”
After analyzing theREBGV stats, the North Vancouver market experienced price declines from January to June. The aggregate median price of a detached home decreased 9.7 per cent to $1,551,000 from the same time last year. Meanwhile, the aggregate median price of a condominium decreased 7.6 per cent to $616,250 from 2018. The median price of a townhome increased nearly 1.4 per cent to $1,010,000 from the same period in 2018. The decline decreased slightly for detached homes and condos.
“Home buyers haven’t had this much selection to choose from in five years,” Smith said. “For sellers to be successful in today’s market, it’s important to work with your local REALTOR® to make sure you’re pricing your home for these conditions.”
The North Van Detached is currently in a balanced market position with 20 per cent of homes selling and 80 per cent of homes not selling. Homes are selling. We have seen a few brisk sales and even the odd sale over asking price when the home was priced for the current market and demonstrated value. Price is paramount.
It’s important to remember that the market value is the price a buyer is willing to pay. The market is low on quality inventory. If you have a nicely renovated home, there is a buyer for that home at the appropriate price.
From the REBGV, “Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months”. North Vancouver has sat below the 20 per cent mark since June 2018 with the exception of May 2019.
As long as you are buying and selling in the same market, the outcome is relative. Markets go up and down. Unfortunately, the pricing gains seen in the hot 2016 and 2017 markets have been wiped out. On a positive note, 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 $1,036,500. This represents a decline of 9.3 per cent from the MLS® HPI over the last year but an increase of 2.4 per cent over the last 3 years, 50.4 per cent over the last 5 years and 82.1 per cent over the last 10 years.
There were 82 detached sales in June 2019, on par with the 80 detached sales recorded in June 2018. The benchmark price for detached properties was $1,524,800, demonstrating an 11.1 per cent decrease from May 2018. This represents a decline of 9 per cent over the last year and a decline of 9.3 per cent over the last 3 years, an increase of 48.2 per cent over the last 5 years and an increase of 91 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 2 months worth of inventory. This tells us that almost 2 out of 10 homes were priced properly. Over 8 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 42 days compared to June 2018 at 26 days. Homes are selling on average for 94 per cent of list price. The detached market has been building steadily since December 2018. The inventory is down slightly from June 2018 and May 2019. Seasonally, the inventory declines over the summer.
North Vancouver saw 87 apartment sales in June 2019. The benchmark price of an apartment property is $552,400, a 9.6 per cent decrease from May 2018. This represents a decline of 2.5 per cent over the last 6 months but an increase of 21.7 per cent over the last 3 years, an increase of 54.2 per cent over the last 5 years and an increase of 72.9 per cent over the last 10 years.
The condo market is a balanced market with a sales ratio of 20 per cent and a build up of over 2 months worth of inventory. The average condo listing sat on the market for 32 days. Condos are selling for 4.6 per cent less than list. 2.2 out of 10 sellers priced their condos correctly while 7.8 sellers out of the 10 did not.
Attached property sales in June 2019 totalled 27, a decrease from the 33 sales in June 2018. The benchmark price of a North Vancouver townhome property is $946,600, which represents a 9.8 per cent decrease from June 2018. This represents a decline of 4.8 per cent over the last 6 months, an increase of 9 per cent over the last 3 years, an increase of 53.7 per cent over the last 5 years and an increase of 81.1 per cent over the last 10 years.
The attached market is in a balanced market position with a sales ratio of 20 per cent and a build up of 2 months worth of inventory. The average attached listing sat on the market for 30 days compared to June 2018 at 15 days. Attached properties are selling for 4.5 per cent below list and only 2 townhome sellers out of 10 priced their homes appropriately for the market.
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