With recent news headlines such as “Housing prices in Vancouver dropping due to greater supply,” “B.C. residential sales decline,” and “B.C. residential real estate downturn largely behind us,” I bet you’re all rather confused as to what’s going on in the real estate market. So what is the new reality for real estate in Metro Vancouver and Fraser Valley?
The Metro Vancouver housing market continues to experience reduced demand across all housing types. To start, there are now fewer multiple offer presentations, and sellers have also become more flexible with both selling terms and price. Because of this, it is now the norm for buyers to take their sweet time during their purchasing process by considering multiple properties simultaneously, followed by negotiating relentlessly on a deal over a series of offers and counter-offers.
The Real Estate Board of Greater Vancouver (REBGV) reported the number of residential home sales in the region totalling to 1,929 in August 2018; a 36.6 percent decrease from the 3,043 sales recorded in August 2017 – additionally, there was also a 6.8 percent decline in home sales compared to July 2018 where 2,070 homes were sold. Moreover, last month’s sales hit an all-time-low: sales fell by 25.2 percent below the standard 10-year August sales average.
Similarly, the Fraser Valley Real Estate Board reported 1,155 sales of all property types on its Multiple Listing Service® (MLS®) in August; indicating a decrease of 38.5 percent compared to the 1,879 sales in the previous August, there was also a 10.5 percent decrease in sales compared to the 1,290 sales made in July 2018.
Sales of attached homes continue to represent over fifty percent of all real-estate transactions in the Fraser Valley as of August – where a total of 294 townhouses and 318 apartments were sold.
Many Sellers are pricing their properties much lower than they would have a year ago, close to 2017’s assessed values. I’ve seen some sellers even selling their homes under assessed values, as it’s forecasted that 2018’s assessments will stay the same or will be slightly lower than the previous year’s. Not that assessed values are market value, but prospective Buyers do use assessed values as a benchmark of what they should offer. As a Seller, effective pricing is key and will ultimately be your determining factor in a successful transaction.
For Investors, it’s officially a prime time to bid lower offers that go hand-in-hand with favourable terms such as financing approval, inspection and approval of strata documents. Moreover, we also have the ability to show the property to prospective tenants prior to completion date…and the craziest thing is among all these factors, we’re still able to have our offers accepted!
As of September 17, 2018, there are 83 brand new listed one and two bedroom condo’s under $400,000 for sale in the Metro Vancouver and Fraser Valley region. In the month of August – only five of these units sold; with such a low absorption rate, the tables have finally turned as it has now become a buyer dominant market: at least for now, that is…hooray, while it lasts!
If you are thinking of selling your investment in Greater Vancouver or anywhere else in BC, please contact us at firstname.lastname@example.org or at (604)618-2128.