(North Vancouver Canada by Flying Penguin cc3.0)
Sales Slowing Down in North Vancouver
The newest Real Estate Board of Greater Vancouver (REBGV) report showed that total active listings increased in September. This helped to balance the demand-supply radio. In addition, apartment and townhome activity is outpacing the detached home market across Metro Vancouver. This activity helped push total residential sales above the historical average in September.
The REBGV reported that residential property sales in the region totalled 2,821 in September 2017, a 25.2% increase from the 2,253 sales recorded in September 2016, but a 7.3% decrease compared to August 2017 when 3,043 homes sold.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,037,300. This represents a 10.9% increase over September 2016 and a 0.7% increase compared to August 2017.
Currently in North Vancouver, a total of 584 properties are listed for sale; among them, 376 detached properties, 156 condos, and 52 townhomes. Although the total number of active listings is slightly higher than last month, it is still at a record low comparing to data over the last 10 years.
In September, there were a total of 74 detached house, 108 apartments and 23 townhomes sold in North Vancouver. The total number of property sold (205) is slightly lower than last month (212), but still showed a growth from last year (182).
The benchmark price of a North Vancouver detached property stayed stable at $1,713,000. This represents a 1.9% increase when compared to September 2016. And the benchmark price of a townhome is $964,700, which shows a 7.0% increase from September last year. Moreover, the benchmark price of an apartment leaped 19.5% over a 12-month stretch to a price of $553,500.
The jump can be partially attributed to competition among a growing number of downsizers. More and more house owners are selling their single-family homes in North Vancouver, looking to buy smaller, more convenient housing units.
In addition, the North Shore’s miniscule vacancy rates are another part of the reason housing costs overall continue to climb, noted municipal consultant Alex Boston. “Supply is being outstripped by demand, and that’s just a simple economic function,” he said.
Currently in North Vancouver, the sales-to-active ratio is 69.2% for condominiums and 44.2% for townhomes. This indicates that both property types are in a seller’s market. Demands for apartments and townhomes remain very strong, and their prices face an upward pressure. On the other hand, detached properties have come to a more balanced market, with a sales-to-active ratio of 19.7%.
It is evident that North Vancouver housing market is affected by all the new rules put in place recently: The federal government brought in regulations last fall requiring a “stress test” for borrowers of insured mortgages; the provincial government has imposed foreign buyers’ tax for more than a year. Not to mention, the Bank of Canada has started increasing interest rates.
All the changes were hurting the affordability of housing in the region, and were forcing home buyers to turn their eyes on the relatively more affordable condos and townhomes. Therefore, condo and townhome will remain the focus in North Vancouver housing market.