As you have probably read in the news already, the market continued to drop in August both in Greater Vancouver and on the North Shore. It is also probable that the statistics for August do not even properly represent just how much the market may have dropped since the beginning of August, as the statistics likely contain some reported sales that occurred in July, prior to the new foreign buyer tax being introduced. We will likely have to wait until later in the fall or early winter to see the true impact of the tax but there is no question that the statistics are starting to reflect what we are seeing in the field which is nervousness on the part of both sellers and buyers.
West Vancouver Detached Homes
The West Vancouver market continued to drop for August, with the sales ratio now sitting firmly in buyers’ market territory at 8% (down from 11% last month). On average, homes are selling 4% below list price and the average sale price for August was down more than $300,000 from the month before to $2,779,000, the lowest since November, 2015. The significant drop in average sale price is at least partially to do with the fact that the most active price band in the market right now is the more affordable “lower end”, meaning homes between $1,750,000 and $2,000,000. Inventory in West Van was actually down 8% in August from July but sales were also down 27%, and the inventory will likely climb over the next month or so. It is quite possible that the West Vancouver detached market will soften even further over the coming months so if you are considering selling in the near future, it may be a good time to act quickly.
West Vancouver Attached Homes
The West Vancouver Attached market has not felt the impact of the foreign tax to the same extent as the detached market. The sales ratio for this segment sat at 41% for August, which is still quite strong. Inventory was down 14% in August from July and number of sales were exactly the same for July and August (21). The average sale price fell 8% from the previous month to $900,000. sales ratio fell from 49% to 36% from June to July but that is still quite solidly a sellers’ market. Inventory in this segment of the market was also up 7% month over month and the average sale price fell 7% to $980,000. On average, homes were selling right at list price.
North Vancouver Detached Homes
The North Vancouver detached market also continued to slow for August, although not to the same extent as the West Van market. The sales ratio for August sat at 33%, with inventory falling 7% from the prior month and sales falling 32%. The average sale price in North Vancouver was also down for August to $1,570,000, the lowest since December, 2015. Similar to West Vancouver, the most active price band for North Vancouver detached homes was the more affordable homes between $1,250,000 and $1,500,000, where we saw a sales ratio of 59%. On average, homes were selling 2% below list price, and the average days on the market was 14.
North Vancouver Attached Homes
In keeping with the last few months, the North Vancouver attached market remained quite strong in August, with a 62% sales ratio (down from 88% in July) and homes selling on average 2% above list price. Again, in the current climate where affordability is key, the most active price band was properties below $500,000. The average sale price dropped 4% in August to $480,000 and the average days on market increased from 8 to 10 days. Still, properties on average were selling 2% above list price in August. Lower and Central Lonsdale were the busiest areas by far in August although Lynnmour and Lynn Valley saw quite a few sales as well.