While demand has increased, so has supply, reaching a five-year high. There was an 8.1 percent decrease in new listings in the month of May 2019 versus May 2018, indicating that sellers are reluctant to list their homes in this shifting market. There are approximately 15,000 homes listed in Metro Vancouver, the highest number of active listings since 2014. What we are seeing predominately in the overpriced inventory is carrying over month after month.
Strategy has never been more important, for buyers and sellers. If you are a buyer, it is important to be proactive. Ensure that you have a search set up with your criteria in place to receive listings as soon as they hit the MLS. Know your budget by getting pre-approved, and do your research on the neighborhood you're interested in. Vancouver is made up of many niche markets, with prices and availability varying from neighborhood to neighborhood. As a seller, We cannot stress enough the importance of accurately pricing your property and ensuring you have an effective marketing strategy in place. It is also important to identify the unique features of your property and highlight them to appeal to the likely buyer of your property. Good properties that are well priced are selling quickly with multiple offers. Our team experienced about 5 multiple offer situations over the past month, from downtown condos to detached waterfronts in North Vancouver. There are fantastic buying opportunities out there right now, it is just a matter of being proactive and watching the market.
The Spring Real Estate Market in Metro Vancouver
The stats are in for May, so we have recapped the spring real estate market!
Historically, this is the busiest time for real estate sales. We certainly saw the market pick up as we helped 9 families buy properties this month. The Metro Vancouver housing market has seen a modest increase in home sales (44.2% increase from April 2019). For all property types, the sales-to-active listings ratio for May 2019 is 18%. By property type, the ratio is 14.2% for detached homes, 20% for townhomes, and 21.2% for apartments. Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months. If we look at April 2019, the overall sales-to-active listings ratio is 12.7%. By property type, the ratio is 9.4% for detached homes, 15.4% for townhomes, and 15.3% for apartments. This shows us that the market has improved, but we will have to see if it sustains throughout the coming months, or if the improvement is strictly seasonal.
If you have any questions, please feel free to reach out to me anytime!