Home buyers took a more passive stand in February as sales in the real estate industry took a hit as it went below the long term historical average in February this year.
Home sales in February 2018 saw a 21.4% increase in comparison to the previous month that saw a sales of 1,818 homes and a 9% dip when compared to February 2017 which witnessed a sale of 2,424 as reported by The Real Estate Board of Greater Vancouver (REBGV).
This February lost 14.4% sales when compared to the average February sale in over a decade. Both detached and attached property sale were recorded 39.4% and 6.8% lower than the 10- year average February sale while apartment sales exceeded the same by 5.5%.
To quote Jill Oudil, REBGV president, “Rising interest rates and stricter mortgage requirements have reduced home buyers’ purchasing power, particularly for those at the entry level of our market. Even still, the supply of apartment and townhome properties for sale today is unable to meet demand. On the other hand, our detached home market is beginning to enter buyers’ market territory.”
4,223 properties (detached, attached and apartment), for the first time, have been recently listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver this year. This represents a 15.2 percent more than the number of homes listed in February last year and an 11.2% raise when compared to January this year.
7,822 homes are currently listed on the MLS® system in Metro Vancouver. This stands to be 3% higher than listed homes in February last year (7,594) and 12.6 % higher than listed homes in January 2018 (6,947). “The spring is traditionally the busiest time for home buyers and sellers in our market. We’ll wait to see how they react to the taxes and other policy measures that our provincial and federal governments have introduced so far this year. To help you navigate these changes in today’s housing market, it’s important to work with your local REALTOR®”, said Jill Oudil.
28.2% properties out of those listed were sold in February, 2018. On further classification on the basis of property type, the ratio was found to be is 13%, 37.6% and 59.7% for detached homes, townhomes and condominiums respectively.
Home prices tend to decrease when this percentage is below 12% and increase when the same is above 20% for a prolonged period.
The MLS® Home Price Index compound standard price for all properties intended for residential purposes in Metro Vancouver stands at $1,071,800, currently. This is 16.9% higher than in February 2017 and 1.4% higher than in January 2018.
The sale of detached properties recorded a fall from 745 to 621 properties of the same type, this February with respect to the previous year. The touchstone price for detached properties is $1,602,000 currently. This is 8.2% higher than in February last year and represents a negligible change from January, 2018.
The sale of apartment properties recorded a fall from 1,275 to 1,185 properties of the same type, this February with respect to the previous year. The touchstone price for apartment properties is $682,800 currently. This is 27.2% higher than in February last year and 2.6% higher than in January this year.
The sale of attached properties recorded a fall from 404 to 401 properties of the same type, this February with respect to the previous year. The touchstone price for attached properties is $819,200 currently. This is 18.1% higher than in February last year and 1.9% higher than in January this year.