Detached Sales Fall 24% Below 10 Year Average
It was a blistering cold December in Vancouver, with heavy amounts of snowfall wrecking havoc amongst unsuspecting locals. But make no mistake, the weather had nothing to do with this month’s real estate freeze. It continued a trend that has been ongoing for the past 6 months, including November, which saw a 52% drop in sales year over year.
Sales across the lower mainland continued to falter, again falling 52% year over year this month and even more dramatic in certain areas.
Sales
[table id=24 /]
As noted in the table above, detached sales fell year over year by 47% in Vancouver East, 52% in Vancouver West, 66% in Richmond, 59% in Burnaby, 52% in REBGV, 54% in FVREB (Fraser Valley). REBGV detached sales were 24% below the 10 year average, Fraser Valley fell 22% below the 10 year average.
New Listings
Vancouver East- 77
Vancouver West- 63
Richmond- 82
Burnaby- 47
REBGV- 486
FVREB- 331
As per usual, new listings were at their lowest in the month of December. This is typical as sellers hold off until the New Year. However, REBGV new listings were 28% below the 10 year average, FVREB was 41% below the 10 year average. This is likely due to the uncertainty in the market as potential sellers hold out for a more prosperous 2017.
Sales to Actives Ratio
Vancouver East- 11%
Vancouver West- 15%
Richmond- 11%
Burnaby- 13%
REBGV- 14.7%
FVREB- 16.4%
All markets except Vancouver West are in a buyers market. This marks the fifth consecutive month REBGV detached homes have been in a buyers market.
Months of Inventory
Vancouver East- 9.3
Vancouver West- 6.6
Richmond- 8.9
Burnaby- 7.6
REBGV- 6.8
FVREB- 6
Anything above 6 months of inventory is considered a buyers market. Little has changed month over month, for comparison, there was 6.9 months of inventory in November for REBGV.
Prices
Average and median sales prices fluctuate month to month. There appears to be somewhat of a levelling off phase for REBGV average and median sales prices. However, in other more specific areas the average and median continues to fall. One has to think the longer it remains a buyers market it will add more downwards pressure on prices.
Summary
The detached market remained a buyers market for the fifth consecutive month. This will keep a downward pressure on prices as sellers are forced to adjust their expectations. There are few signs that this will change anytime soon. Due to the slow winter months and the vast amount of uncertainty sellers are holding off until the New Year. This can be seen in the lower than normal new listings hitting the market. Sales are also well below normal levels, the homes that are selling are the ones where the seller is willing to take a reduction or are in a good location and highly sought after. The less desirable homes that were selling in a weekend last spring are a thing of the past. New listings will surge in the New Year as they always do, it’s uncertain if the buyers will be there to absorb the additional supply.
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