DATE

Vancouver detached

Vancouver Real Estate Detached Market Report November 2017

Steve Saretsky -

Vancouver Detached Market Continues to cool in November

The Vancouver detached market continues to soften in November. Sales increased on a year over year basis but remain well below the ten year average. Buyers are getting more house for their dollar and a weak sales to actives ratio favours the buyer in negotiations. Let’s break down the numbers.

Detached Sales

Detached sales are reminiscent of 2012, which is considered a weak year but certainly not like 2008 after the financial crisis. Basically, houses are still selling, but sellers are facing a lot of competition with rising inventory and buyers who are looking for deals.

Vancouver detached sales increased by 21% on a year over year basis but were 31% below the 10 year average for the month of November.

As you can see in the charts below, detached sales are trending downwards after peaking in 2015. This is more pronounced on the West side as prices are more expensive with the West side under a ton of pressure.

New Listings/ Inventory

New listings are climbing rapidly in Vancouver. New listings for the month of November hit a 10 year high. There were 379 new detached listings for Vancouver, up 14% year over year.

Vancouver Detached new listings
New Listings for November

With sales falling and new listings climbing this is pushing inventory levels higher. Vancouver detached inventory is up 12% year over year. Currently there are 1595 detached houses for sale, marking the highest total of any November in the past decade.

Vancouver detached inventory levels
Vancouver Detached Total inventory for sale.

Sales to Actives Ratio

Vancouver- 11%
Vancouver West- 11%
Vancouver East- 12%

The sales to actives ratio of 11% is considered a buyers market. Meaning the demand/supply balance favours buyers when it comes to negotiating prices.

Vancouver Detached sales to actives ratio
Vancouver Detached Sales to Actives Ratio

Detached Prices

The average sales price for Vancouver detached homes is $2,639,630 this is up 0.6% on a year over year basis. Keep in mind this is only comparing one month at a given point in the year. The 3 month rolling average gives a pretty good sense of current market trends.

Summary

The Vancouver detached market is experiencing a continued slowdown of sales with rising inventory levels. This is putting downwards pressure on prices. Many sellers are holding firm, however the sellers that need or really want to sell are having to be flexible with their price. This includes numerous price reductions. I suspect a continued cooling in the next couple months.

Stay Informed. Join My Weekly Vancouver Real Estate Round-Up.

Join the Monday Newsletter

Every Monday morning you'll receive a short and entertaining round-up of news on the Vancouver & Canadian Real Estate markets.

"*" indicates required fields

The Canadian Economy

Steve Saretsky -

Happy Monday Morning! We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC...

Steve Saretsky -

The calls for impending interest rate hikes continues. CIBC’s chief economist, Benjamin Tal, was out recently suggesting the Bank of Canada could hike its benchmark interest rate at least six times beginning in early 2022. “I think there is a risk of getting into the market at today’s rates,” noted Tal....

Steve Saretsky -

The BC Government announced it is looking at several cooling measures for the housing market in 2022. They have highlighted two measures. The first is an end to the blind bidding process, and the other is a mandatory “cooling off period” which will allow any buyer a 7 day recession...

Steve Saretsky -

The Bank of Canada continues to slowly drain liquidity after flooding the system with a firehose of cash during the pandemic. Bank of Canada governor Tiff Macklem announced the end of Canada’s QE program (also known as money printing). Furthermore, in Macklems words, “We expect to begin increasing our policy...

Steve Saretsky -

Consumer price inflation ripped higher in September, surging 4.4% year-over-year, the fastest pace of price increases in 18 years. Let’s discuss this further. We have an inflation problem and the Bank of Canada remains of the view that inflation will be transitory. Although they really can’t say otherwise, for if...

Get the Saretsky Report to your email every month

The Saretsky Report. December 2022