By January 12, 2019—
Over the last year, we’ve seen the real estate market transition from a seller’s market into a buyer’s market.
In the month of December, there wasn’t much activity going on in Kitsilano in terms of sales of detached homes. But what we did see was that the sales of the two homes happened much faster than in the previous month. This kind of quick sale implies that the buyers saw that the homes were listed at an acceptable market price.
During the holiday season, there was a noticeable difference in newly listed homes. There were a substantially fewer amount of homes newly listed and even fewer sales. Now, this isn’t unusual as this trend is in line with historical patterns. You might also want to know that the only 4 of the 16 homes sold were at or above asking price. This downward pressure on market pricing shows that there continues to be fewer buyers in winter, allowing for more negotiation opportunities.
Summary of 2018
2018 introduced some very new policies in Vancouver real estate. Just to give you a refresher, the year started off with the new mortgage stress test rules that came into effect in January. These were introduced by the federal bank to regulate homebuyers across the country to help prevent them from taking on levels of debt that might be too risky. We then ran into the new empty home tax to manage home affordability and to discourage outside buying that could drive up the sales price.
Overall, it’s been a pretty eventful year for Vancouver real estate. It’s certainly been a bumpy ride, but some real estate professionals claim that a correction is in the making. We are currently sitting in a buyer’s market where there is more selective buying.
A report was recently released by Sotheby’s International Realty Canada (sothebysrealty.ca) that claimed Eastern Canada’s metropolitan areas led the nation in top-tier real estate performance throughout 2018. On the other hand, Western Canada experienced major stressors in Vancouver with the new taxation laws. This pushed both Vancouver and Calgary markets into a buyer’s market.