March Real Estate Market Update
How did the Vancouver real estate market go for the month of March and how does that affect you?
Home Sales Remain Low Which Means Smart Shoppers are Finding Deals
Not much has changed from the first two months of this year. Houses prices are fairly steady while sales are slightly up. Condos are seeing slow sales and softening price trends continue. The spring market does seem to be strengthening a bit but the numbers aren’t quite showing it yet. So how about we dig a little deeper, behind the Greater Vancouver stats?
Stat: House sales down 26.7% over last year.
- In Vancouver-West, house sales went up 21% (yes up!) over last year.
- North Vancouver, house sales are up about 4%.
- West Vancouver is also a little stronger than the average with a 12% drop in house sales (compared to the 26.7% average).
- In contrast, East Vancouver was down 36% in house sales year over year.
Stat: Average days on market is 37 for condos and 46 for houses
Reality: There should be a little caveat at the end of this stat that states: “when the property is priced correctly” or “on third try.”
What’s happening is that homes that have been listed for 3, 6, 9 months to a year are dropping prices every few months to keep up with the downward moving prices. Every time the properties are “re-listed” at a new price, the clock starts on the listing again at zero. So, while it looks like the property may have sold in 37 days, it might actually be closer to 137+ days.
Stat: New listings are up 11.2% over last year
- New house listings are actually down in Vancouver-West by 18% and East Vancouver by 11% for the month of March.
- New condo listings, however, were up 22% in Vancouver-West and 12% in East Vancouver.
Overall, the total number of current house listings in Vancouver-West is down 10% from last year, while the total number of condo listings has almost doubled. This likely reflects the larger price drops for single-family homes, reducing the number of people wanting to put their house on the market right now.
Looking for the full story?
For a complete look at the Real Estate Board of Greater Vancouver stats, and digging further into the micro – please click on the image below.
The Most Important Question – How Does This Affect You?
The Higher The Price, The Harder The Fall
Buyers looking to get the best price for a home should look beyond the asking price.
Watch For Highs to Low
Properties that are listed too high for the market, generally end up selling below what they would sell for if they were priced right the first time. Listing fatigue sets in as properties linger on the market a long time. Months later, Sellers are ready to take much less to get it sold. It’s where Buyers can find good deals.
Is it Really New on The Market?
As mentioned above, there’s a lot of re-listing going on as prices are dropping. While the property may be new to your price range, it may have been on the market a long time. I always check the history of the property for interesting information.
The Sweet Spot
Selling prices right now, in general, are close to the BC Tax assessed value or even under. I’ve seen great homes selling for up to 20% under assessments. Usually, properties that are well presented and newly renovated sell for more and homes that need work are less. Staging pays off!
Asking Prices Vary
Asking prices still vary for similarly valued properties. Most Sellers are pricing for today’s market, but there are still some that are overpriced. It pays to (have me) do a bit of research to make sure the value is there.