In BC, existing home sales continue their descent, but realtors suggest that by 2019, the resale market will begin to recover. Meantime, new home sales in the province’s biggest market, Vancouver, have actually climbed — although unsold inventory is also on the rise. To put these and other developments in perspective, check out these five charts.
New condo sales buck broader market cooldown
The takeaway: “The primary reason for the quarterly increase in sales was strong demand in the suburban sub‐markets south of the Fraser River, where investor and entry-level demand for low rise condominium product remained strong,” reads the report, authored by Michael Ferreira, managing principal of Urban Analytics.
Real estate slowdown isn’t limited to existing homes
What’s going on here: Altus Group recently released 2017 annual totals for the sales of new homes, comparing last year’s results with each year dating back to 2007 as well as first-half totals for 2018.
The takeaway: New-home sales peaked in 2016 and continued to decline as of the first half of this year, with sales down about 15 percent from the same period in 2017.
Metro Vancouver homebuyers benefit from price reductions
The takeaway: Homebuyers in Metro Vancouver have been getting “a little relief” of late, according to the board. Home prices are down between 3 to 5 per cent since June, depending on the category of property.
Brighter days for BC real estate are ahead: forecast
What’s going on here: Projected 2019 home sales for the major markets in the province, according to the British Columbia Real Estate Association’s latest forecast.
The takeaway: It’s going to get worse before it (quickly) gets better. This year, the board anticipates 80,000 homes will have changed hands in the province by the year’s end, down from 2017’s tally of 103,768 transactions. However, in 2019, BCREA predicts sales will recover to 89,500 units, above the 10-year average.
2 years ago, Vancouver was the top luxury real estate market in the world. Today?
The takeaway: “Vancouver… sits at the bottom of our rankings as upmarket areas such as West Vancouver have seen a marked slowdown in sales and prices as a result of the raft of measures introduced in February’s Budget,” Knight Frank says.