Vancouver area real estate has stalled for the second month, with the biggest drop in West Vancouver, but no big crash yet and prices are still way up from a year ago. The biggest drop is in sales:
The number of sales made in the region dropped dramatically in October 2016. There were only 2,233 sales, a 0.9% decrease from last month. Oh, your real estate agent said it’s seasonal? It’s a 38.8% decrease from last October. Pretty sure that was the same season last year. Agents typically interpret this as sellers seeing less value in selling right now. Conversely, less units for sale typically means lower inventory, which could push prices higher… eventually.
Read the full article over at betterdwelling.com
It’s another Friday in the land of sunshine and roses! let’s do our regular end of the week news round up and open topic discussion thread for the weekend.
It’s Friday Free-for-all time !
Here are a few recent links to kick off the chat:
–September stats off
–October stats highlights
–home sales plummet
So what are you seeing out there? post your news links, thoughts and anecdotes in the comments below and have a great weekend!
Yvr2zrh posted a snapshot summary for what’s currently going on in the market:
So – Here are some interesting takeaways from the numbers yesterday.
1.) Across Canada, you saw the impact of the mortgage rule announcements. Markets most likely to be affected by this rule change saw a spike in transactions.
2.) REBGV region is likely going to be the only region in Canada which saw a transaction volume decrease from September to October. This shows how soft it is.
3.) In REBGV – The components outside the 15% tax zone had the lowest sales decrease for detached (VWS, VIS, VMR, VSC).
4.) Zones with most concentrated foreign investment are having largest volume decreases. West Van leads with Burnaby and Richmond coming up next. Van West Detached had a pretty good month, comparatively. (Perhaps the tax auditors will start to pull apart those transactions to find some GAAR violations for the new taxes!).
5.) Prices are down for detached in almost all markets. In REBGV, only the zones outside the tax area are up. Although down, VVE and VVW have the lowest decreases in the 3-month range. West Van, Burnaby, New West and Port Coquitlam have the largest decreases so far.
6.) In the FVREB area – the most amazing statistic was the very large increase in sales of apartments. This has to be showing that people rushed to purchase to beat the mortgage rule changes.
7.) FVREB – Detached are doing poorly with White Rock showing the most significant sales decrease.
8.) Van West apartments – one of the largest apartment markets – was noticeably down in volume and price. This is counter to the trend in apartments. Perhaps this is showing the impacts of the new AirBnB rules and vacant home tax. Investor demand should now basically be capped unless they are buying to rent – – which is a terrible proposition at todays prices. Thus – we are now already seeing the impacts of the new rules – before they are even in place. Next step will when rules force current owners to re-assess their situation and likely sell (if you don’t want to rent to long-term renter – you won’t be able to be hold a second home or rent to Air BnB – – too costly and illegal respectively).
9.) Trends? From September to October – the following were the most significant declines in significant markets: Maple Ridge – Apartment, Burnaby – Detached, North Van – Apartments, Richmond Detached, Van West Townhouse, Port Coq Apartment, Van West Apartment.
– – Strangely enough – Van West Detached was modestly stable.
There’s the current month thoughts. Overall – a pretty good price decline. If we get any month over 1% across the market as a decline – that’s pretty significant.
Usually we post this as a Friday Free-for-all, but we’re a day late this time.
It’s our open topic discussion thread for the weekend!
Here are a few recent links to kick off the chat:
–Post-tax foreign buyers 1.3%
–Housing market problems
–CMHC issues warning
–Whats the magic inventory number?
–Real estate trends
–No rate cut for Canada
–CMHC plays catch up on warnings
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
After that irritating interruption from a hack attack, we’re back.
Meanwhile a lot of other people have gone to live somewhere else while they leave houses here empty. According to this article over at BNN the number of vacant homes in Vancouver has nearly doubled since 2001:
Mayor Gregor Robertson, who has criticized some of Mr. Yan’s tracking of foreign home ownership in his city, said this latest study reinforces his government’s commitment to penalizing those who leave properties vacant.
“Seeing data that demonstrates there may be even more underutilized homes than BC Hydro suggests gives us more reason to aggressively move on the empty homes tax,” Mr. Robertson told The Globe and Mail Tuesday.
“We certainly hear, anecdotally, concerns about empty homes in various neighbourhoods, and now the body of evidence is building, so that helps.”
The B.C. government passed legislation in the summer allowing Vancouver to impose a tax on empty homes, which the city argues are taking up housing that could be rented out.
The province has said it will consider similar requests from other cities.
Read the full article here.