As Metro Vancouver developers pressed on with more new residential project launches, demand for homes on the resale market stayed stuck below historically normal levels in November.
A total of 1,608 homes changed hands in Metro Vancouver last month, down a jaw-dropping 42.5 percent from the same time a year ago and 18.2 percent compared to the previous month’s activity. The number of transactions was 34.7 percent shy of the 10-year average for the month making this the slowest November since 2008, according to the Real Estate Board of Greater Vancouver (REBGV).
Housing Market News Alerts
Sign up now for news alerts on the Vancouver housing market
“Home buyers have been taking a wait-and-see approach for most of 2018,” explains Phil Moore, president of REBGV, in a news release. “This has allowed the number of homes available for sale in the region to return to more typical historical levels,” he adds.
As of November, there were 12,307 homes listed for sale on REBGV’s MLS system. Listings have surged 40.7 percent annually, although they have eased by 5.2 percent since October.
While sales have grinded lower and inventory has piled up, home values are falling from all-time highs. For detached homes in Metro Vancouver, the benchmark price was $1,500,100, a 6.5-percent decline from a year earlier and down 1.6 percent from October. While the benchmark condo price of $667,800 remains up 2.3 percent annually, it represents a month-over-month drop decrease of 2.3 percent.
“Home prices have declined between four and seven per cent over the last six months depending on property type,” Moore says in the news release. “We’ll watch conditions in the first quarter of 2019 to see if home buyer demand picks up ahead of the traditionally more active spring market.”