April 2019 Real Estate Statistics for Downtown Vancouver
Some of my clients have said that my emails are too negative about the realities of the Vancouver real estate market. So in order to make everyone happy I wanted to tell you sales are up, prices are up and everyone’s net worth is up. If you are happy with my email please stop reading. If you want the truth about Vancouver real estate, please continue.
In a nutshell, the Downtown Vancouver condo market continues to correct and the luxury Vancouver market continues crumble or as CTV news says “the Luxury Market is Experiencing Carnage” https://bc.ctvnews.ca/luxury-home-market-experiencing-carnage-in-some-spots-1.4404275
Metro Vancouver sales dipped in April to more than 43% below the 10-year sales average and are down 29% from April 2018.
Focusing on the Downtown Vancouver condo market in April 2019;
The under $900,000 market (local money market) continues to sell if the price is right, which is 10% to 20% lower than last year.
Unit sales were up 5% from last month but down 37% from April 2018. Those who are priced correctly for this market are selling on average in 21 days.
The median price dropped only 3.5% from last month thanks to a few luxury sales in the downtown market but the median price is down 12% from April 2018.
The average price per square foot increased 1% from $985 in March to $991 in April.
And inventory continues to climb closer to 1000 units with 969 active listings up 75% compared to April 2018 with only 554 units creating further downward pressure on pricing.
The sellers’ best bets are studios and 1 bedrooms as always. And the buyers’ best bets are pretty much anything over $1,250,000. Condos between $1.75 million to $2 million and above $5 million, in particular Coal Harbour 3 bedroom properties are the worst performers.
In my previous emails I had put many notable sales to illustrate the changing market. However, now that everyone understands the prices are dropping I want to explain a new development we haven’t seen in years and that is court ordered sales. Unlike 2008 and 2009 where all the mortgage foreclosures were TD, Scotiabank and RBC etc this time around its different. The big banks got wise and stopped lending to riskier applicants. In 2019 its all about the B Lending (private lending) which is 100% unregulated which means that private lenders can lend at any rate the applicant is desperate enough to pay. Just to give you an idea, 80% of the court ordered sales in West Vancouver are from private lenders, not the big banks. Foreclosures will be the big story in the years to come so pay attention. If you are interested in foreclosures please visit https://www.oyum.ca/
I hope you find this helpful, but should you have any questions please don’t hesitate to ask.