Newsletter E-market update
November 04, 2016
November 2016 Newsletter
Market in a holding pattern and other Halloween stories
I was thinking about a scary Halloween story that I could write about and then realized that the new CMHC mortgage rules, a 15% foreign buyers tax, CRA investigations into money laundering and tax avoidance, fraudulent realtors, a proposed vacant home tax and a potential extradition treaty with China all make for frightening scenario. Not surprising all of this has put buyers and sellers into a holding pattern. The sellers are holding out or not putting their homes on the market while the buyers are waiting in anticipation of further price drops. We all know that there is a lot of money that wants to find its way into Vancouver but we just don’t know when the dust will settle.
Reduced home sales and listing activity are changing the market dynamics in Metro Vancouver. Residential property sales in the region decreased 38.8% in October compared to a year ago. Last month’s sales were 15% below the 10-year October historical average. While sales were down across all property types, it’s the detached house market that’s seen the largest reduction in buyer demand. Sales of detached properties in October 2016 were 54.6% lower than October 2015. Sales of attached homes in October 2016 saw a decrease of 39.5% compared to October 2015. Sales of condos were off 23.7% compared to October 2015. While the sales numbers were down we also saw the number of listings lower by 4.5% compared to October 2015.
While we were seeing the market start to slow in the summer, the added punch delivered by the government has accelerated the downward momentum. What I am seeing is many more “For Sale” signs in certain areas and a much longer time to sell. The positive news is that buyers have a little more time to decide, less competition and now have time to do a property inspection before making their purchase decision. It looks like the Halloween housing market may extend into the New Year!!
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