Increased Supply & Reduced Demand remains the trend across Metro Vancouver
There continues to be a decreased demand which in turn is allowing for an over-supply of homes for sale in the market
Last month’s sales were 43.1% below the 10 years April Sales Average. At the same time, the federal government’s policy of the ‘Mortgage Stress Test’ has reduced buyer’s purchasing power by -20%. This in turn has negatively impacted entry level buyers who are struggling to secure mortgage financing!
The MLS benchmark price of detached home is $1,425,200 (11.1% decrease from April 2018). Benchmark price of an apartment is $656,900 (6.9% decrease from April 2018). The benchmark price of an attached home is $783,300 (7.5% decrease from April 2018).
Sales-To-Active Listings Ratio (Inventory of Homes for sale compared to # of sales/month) is currently at 12.7% which is trending towards a ‘Buyer’s Market’
1) Buyer’s Market = <10%
2) Balanced Market = 10-20%
3) Seller’s Market = >20%
What does this mean?
A Buyer’s Market typically favors Buyers allowing them with more selection of properties to choose from. Seller’s will be motivated to price their homes more competitively in today’s market if they want to increase their chances of selling their property.