Homes in Vancouver aren’t selling like they used to.
Only 1,484 properties changed hands in February. That’s a more than 32 per cent drop from February 2018, when 2,207 homes were sold.
Last month’s sales were more than 42 per cent below the 10-year average for February.
“For much of the past four years, we’ve been in a sellers’ market. Conditions have shifted over the last 12 months to favour buyers, particularly in the detached home market,” said Phil Moore, REBGV president, in a news release.
“This means that home buyers face less competition today, have more selection to choose from and more time to make their decisions.”
The total number of homes currently listed for sale on MLS in Metro Vancouver is 11,590 — a more than 48 per cent increase.
The sales-to-active listings ratio is 12.8 per cent.
“Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months,” said the Real Estate Board of Greater Vancouver, in a news release.
Prices have already fallen, but not to the same degree compared to sales. The MLS Home Price Index composite benchmark price for all residential properties fell 6.1 per cent compared to the same time last year.
At an average price of $1,016,600 — a home in the area is still out of reach for many. Potential buyers could continue to stay on the sidelines until prices fall further.
“Homes priced well for today’s market are attracting interest, however, buyers are choosing to take a wait-and-see approach for the time being,” said Moore.
“Realtors continue to experience more traffic at open houses. We’ll see if this trend leads to increased sales activity during the spring market.”