July 26, 2019
May Sales Up, June Sales Down!
The real estate market on Vancouver’s Eastside continues to defy analysis, with conflicting evidence making market evaluation difficult. For example, the number of detached homes sold in East Vancouver in May 2019 jumped up to 124 (according to Multiple Listing Service statistics from the Real Estate Board of Greater Vancouver). This is higher than the same month in 2018, when 97 houses changed hands! Then, in June 2019 detached sales dropped to 85. With the number of Active Listings hovering around the 700 mark, downward pressure on prices continues. The Benchmark Price for a detached home in the Knight corridor sits at $1,344,800 at the end of June 2019 (based on the MLS Home Price Index). Compare this to the $1,578,800 Benchmark Price in November 2017.
The Fraser Benchmark Price of $1,402,400 is well down from the lofty heights of December 2017, when the Benchmark Price maxed out at $1,642,600. While the Bank of Canada prime interest rate has remained constant so far this year, the Federal `stress test´ continues to make mortgage financing more difficult. The `test´ requires mortgagees to qualify for a mortgage rate 2% higher than the rate being offered by a traditional lender.
As we settle into a slow summer market (where both Buyers and Sellers, and their Realtors, tend to enjoy the beach over open houses!), we look toward the fall market for signs of renewed life in the housing market.