As predicted, October has brought a lot of changes to our real estate market.
Focusing on the Downtown Vancouver market, the median price decreased 11% from September 2018 and 21% from the peak of the market in January 2018. The dollar per square foot also decreased from $1,043 to $979 which is a 6% drop.
There were 143 sales (6 per day) in Downtown Vancouver in October which was up 13% from the previous month but down 33% from October 2017 and the units that are being sold are selling 5% off the asking price. Despite there being 150 listings over $3,000,000 there was only 1 sale.
Inventory is growing steadily. Active listings in Downtown Vancouver in October are up 11% (836 active listings) from the month before and up 93% from October 2017 (433 active listings). My prediction is by March 2019 we will have well over 1000 active listings.
Taking a more global point of view, the Prime Global Cities Index which is a world ranking of luxury real estate. Vancouver was the worst performer falling 11.2% from a year ago. While Singapore topped the list with a 13.1% gain.
My apologies for not sugar coating this and sorry to be the bearer of bad news. However, we are in the midst of a significant correction. Not a big worry for people making a lateral move. However, for anyone cashing out, my suggestion is you list your condo before March 2019 as the spring market will come with a lot of inventory creating further downward pressure on pricing.
I hope you find this helpful, but should you have any questions please don’t hesitate to ask.