Looking at the trends that were noted to have been observed in August for British Columbia, it was seen that the prices of the real estate properties continued to follow a slight downward trend. This was quite important in contrast while comparing to the trends of the last year. But an important factor that needs to be understood as well as when the inventory remains low when the sellers have to face less competition and more opportunity. But some of the data also show that the prices remain somewhat significantly higher compared to the last year. So, we will try to understand the dynamics related to the trends in this case in this article.
If one looks toward purchasing or selling off a real estate property in Vancouver, British Columbia, where it becomes quite necessary to understand the trends of the housing market. It includes some important factors to consider and understand to look further; To understand the ongoing trends of the market, it becomes quite necessary to see the supply and the demand trends which are the most necessary tips to understand the metrics of the health of the real estate market.
The new listings that were noted in August 2022 were almost down by 24% while the sales were down to about 28% on average to the previous five years. Though the total number of home sales had dropped the inventory remained to be below 18 percent compared to the value of the last four years.
Though the months of supply have increased in recent months, there can be more than five months of supply which stands to be almost more than that of 8 percent than the previous years. Thus, few rates of supply combined with less inventory can also make the conditions favourable for the sellers, where more inventories stand to be at a higher position making the supply rates favorable for the buyers.
Therefore, a sudden slow-down which was recorded in terms of the sales also increases the month of supplies making the market more balanced for strong sellers. Since the starting of the last year the real estate prices were sought to be increasing which ended with a relatively flat period in mid-2018 and ended in 2020, with the prices declining. Currently, the rates are down by 2.2 percent over the last month and still are upto 7.4 percent over the last year.
Significance of the prices for the Sellers- As the balance of power is going through a shift from all the sellers to the buyers, the sellers who priced their homes could sell those. Though the specific value of the property would be determined by the forces of the market that prevails both within the community and against similar listings. Significance of the prices for the buyers- As there is currently a very fewer number of homes that have been allocated for sale compared to previous years. Though the frenzy view of the homes quickly makes a fast offer get slowed.
However, the sale of detached homes for August was down by 38% compared to the previous years as the new listings were at 22%. Also, the overall numbers of detached homes for sale were about down to 17 percent of the average in the last four years.
Although the detached prices had been increasing quickly for the last two-and-a-half-year which have declined in recent months. New listing of apartments was noted down to be at 25 percent in August in comparison to the average listings recorded in the last four years when the sales went down to 22 percent.
Generally, apartment prices have been increasing for most of the past years which have started to decline in recent months, in comparison to the last months which are at 8.7 percent from this time.
The prices of the attached homes have been going towards an increase in the past years, but they started to decline which are currently down at 2.5% from last month in comparison to 12.7% the last year. However, a report published by the BCREA reports that a total of 5,645 residential units of sales were recorded with the Multiple Listing Services in August 2022, following a slight decrease of 40.8 percent in August 2021. The average residential price in British Columbia was about $918,378 which saw a 2.1 percent increase from $899,428 that was recorded to be in August 2021, whereas the total sales of dollar volume were at 5.2$ Billion which makes a 39.6 percent of decline notes from the last year.