Vancouver Real Estate Market Update
Changes to the Vancouver Real Estate Market affect citizens and foreign investors alike. The information here is intended to arm you with current knowledge of the market by presenting the facts with the actual sales numbers this year as compared to last year.
Fact: To date in 2016, the Greater Vancouver Real Estate Board (GVREB) has recorded 11,815 sales so far this year. The same period in 2015 reported 12,347 sales. YTD, that means there were 532 MORE sales in 2015 than YTD (August 28,2016) 2016.
Fact: In the first quarter of 2016, GVREB reported 5212 sales compared with the first quarter of 2015 which saw 4256 sales. That is a difference of 956 MORE sales in Q1 2016 than in Q1 2015.
Fact: In the second quarter of 2016, GVREB reported 5324 sales compared with the second quarter of 2015 which saw 5466 sales. That is a difference of 142 LESS sales in Q2 2016 than in Q2 2015.
Fact: Generally speaking, 2016 sales have been slowing down since sometime in April, long before the announcement of the additional 15% Property Transfer Tax that Foreign purchasers will be required to pay upon Completion. Have a look at the number of sales of detached homes between May1 - July 24 in both 2015 and 2016:
Sales Year: 2015 2016 Difference
West Van: 267 191 -76
North Van: 396 370 -26
Van West: 530 406 -124
Van East: 508 451 -57
Burnaby: 441 301 -140
Richmond: 616 445 -171
Surrey/W Rock: 1722 1392 -330
Delta: 226 220 -6
Port Moody: 95 77 -18
New West: 109 116 +7
Maple Ridge: 410 466 +56
Bowen Island: 20 19 -1
Total Sales: 6041 5019 -1022
Before the 15% Property transfer tax was even announced on July 25, 2016, there were 1022 LESS sales in these areas from the period of May 1 – July 24, 2016 than in the same period of 2015.
Fact: There is no immediate way to determine what effect the new tax is going to have on Vancouver's Real Estate Market. It will take some time for the dominos to fall before the repercussions become apparent.
Fact: Nothing goes up indefinitely. As of the end of July 2016, average price per detached home is UP 27% over the same period as last year. Some areas, just to name a few, West Vancouver – up 34%, North Vancouver – up 32%, Richmond – up 39%, Port Moody – up 35%, Vancouver East – up 32%, are higher than the overall average. At a certain point, these prices simply cannot go up anymore.
These numbers are the data that is currently available regarding the sales of homes in the Greater Vancouver area. I have my own opinions on where the Real Estate Market is headed, based on these numbers, but now you are armed with the information and can make your own informed decisions. If you would like any more information, contact me, and I'd be happy to assist you.
**Data from REBGV
Michelle Vaughan Real Estate Sales & Marketing