We are currently experiencing a Buyers market. Recent sales data shows us that the housing market in the Vancouver Region in the latter half of 2018 has slowed. List prices are holding steady, but we have recently started to see a downward trend in list prices and Buyers acceptance of offers below list price.

Now might be a good time to purchase a property. Sellers are becoming exhausted with the competition. Listing prices are starting to reflect Seller "Fatigue" in their MLS list price expectations and / or they are accepting offers below list price so they can make the sale and move on.

1. Bank Rates are still fairly low, but are creeping up.

Rates are on the rise, and it's been widely predicted that they will continue to increase. Buyers are worried that the longer they wait, the more expensive it will be to purchase a property. Buyers are following these rate inceases and thinking of jumping into the market, or upsizing their home before the rates get too high.

2. It has recently shifted from a Sellers to a Buyers market.

Sellers have enjoyed watching their property values incease significantly in recent years and they are now looking to capture significant non-taxable capital gains profit in their homes.

Now that the market has shifted in favour of Buyers, some Sellers are making price concessions and offering incentives to capture the attention of potential Buyers. Cash buyers and those with pre-cleared mortgages have a chance to snap up a home for an attractive price in this Buyers market. 

3. Home prices are holding steady

The significant price inceases we witnessed in recent years have largely stalled in most areas. A range of International, National and Regional market forces have stabilized the market at all levels. The Vancouver Region is still a highly sought out as a stable, safe, comfortable and enjoyable destination for families and businesses. For these reasons, real estate prices may dip a little bit in the near future, but they are likely to stay high and continue to rise, albiet more slowly.

4. People have more money in their pocket

Consumer confidence, low unemployment, and stock market surges are giving people confidence to invest in real estate. Many current home owners are interested in "cashing out". They want to enjoy the significant non-taxable captial appreciation of their homes. There are also many members of our aging population who want to down-size. When these homeowners sell, almost all will need to purchase a replacement home, making the condo and townhome maket strong.

5. Millennials are ready to commit

Millennials, often crippled by student debt and low starting salaries, have been especially hampered by rising interest rates and increasing home prices. These first-time buyers have been saving their money and are now getting ready to take the plunge, largely at the condo and townhome levels of the market.

Now is a good time to explore the market. The stabilized prices, comfortable bank rates and ample inventory make it a very good Buyers market. Contact me for further market information in your region. 

More Information:        Richard White         Sutton Realty        604.828.3847        rwhite@sutton.com

Vancouver Region - Buyers Market

Fewer home sales and listings in 2018

• Home buyers and sellers were less active in Metro Vancouver throughout the first quarter of 2018.
• The Real Estate Board of Greater Vancouver reports that residential home sales totalled 2,517 in March 2018,
• This is a 29.7 per cent decrease from the 3,579 sales recorded in March 2017
• However, this is a 14 per cent increase compared to February 2018 when 2,207 homes sold.
• Last month’s sales were 23 per cent below the 10-year March sales average.
• There were 6,542 home sales on the MLS listing service in Metro Vancouver during first quarter of 2018
• This is a 13.1 per cent decrease from the 7,527 sales over the same period last year.
• This represents the region’s lowest first-quarter sales total since 2013.
• Overall there is less demand from buyers and fewer homes are listed for sale  in the first quarter of 2018.
• Factors affecting sales includes: High prices, new taxes, rising interest rates, and stricter mortgage requirements.
• This represents the region’s lowest first-quarter new listings total since 2013.
• Even with lower demand, upward pressure on prices will continue as long as the supply of homes for sale remains low. March was the quietest March for new home listings since 2009
• Total inventory in the condo and townhome segments, of homes for sale remains well below historical norms.
• Sales-to-active listings ratio for March 2018 is 30 per cent.
• Ratio is 14.2 per cent for detached homes, 39.9 per cent for townhomes, and 61.6 per cent for condominiums.
• Downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period
• Upward pressure occurs with home prices occurs when it surpasses 20 per cent over several months.
• MLS® Home Price composite benchmark price for all residential properties in Metro Vancouver is  $1,084,000. This represents a 16.1 per cent increase over March 2017 and a 1.1 per cent increase over February 2018.
• The benchmark price of an apartment property is $693,500.
• This represents a 26.2 per cent increase from March 2017 and a 1.6 per cent increase over February 2018.

Feel free to contact me for more detailed information or feedback on your real estate plans.

Rick White - Sutton West Coast                     Mobile: 604.828.3847          eMail:   rwhite@sutton.com