Vancouver Real Estate Blog - Vancouver Realtor - Real Estate Market News, Statistics, Opinions and Analysis

What Won’t Sell in Today’s Vancouver Real Estate Market

Sebastian — Thu, 04 Dec 2008 19:53:52 +0000

We are in a slow Vancouver real estate market. Yes, it’s a buyer’s market but what exactly does being in a buyer’s market mean for sellers? That’s a question that I wanted to dig into a little bit. Why won’t homes sell in a slow real estate market?

As readers of the Vancouver Real Estate blog, and local residents not living in a bubble, know the Vancouver real estate market has slowed down dramatically over the last six months. We all know this. We see new evidence of this at every turn. In fact, you can read my latest analysis of the Vancouver real estate market MLS statistics right here.

What isn’t as evident or clear is exactly how this slowdown is affecting us. One affect that is quite self-evident is that homes become harder to sell in a slower market. General real estate wisdom says that a home does not sell in a slow market simply because of price. If it hasn’t sold yet it means that the price is not low enough.

However, it’s not always so simple. A good Vancouver realtor will tell you that there can be other reasons why a Vancouver home won’t sell. For instance, we generally believe that condos with rental restrictions, that are expensive, that are older, are not freehold, or are tenant occupied are harder to sell. In a slow market, most realtors would say any properties with these characteristics would be more difficult to sell. However, is it true?

To answer this question, I did an analysis of the MLS statistics for Vancouver in November 2008. This research was done exclusively for condominiums in Vancouver East and Vancouver West.

Let’s put our hypothesis to the test and see what the results were:

As you can see, the results aren’t as clear-cut as we would have predicted. The majority (3 out of 5) of our categories bucked our prediction.

Tenant occupied properties are only slightly more likely to have sold (14.37% of sales were tenant occupied while 13.42% of all active listings were tenant occupied).

Older properties (defined as more than five years old) were actually more likely to have sold last month (64.67% of sales were in older buildings while 54.82% of all active listings were).

Condos in buildings with rental restrictions were also more likely to have sold last month (31.14% of sales were condos that had rental restrictions while 25.39% of all active listings were).

The two categories that followed our prediction were the expensive listings and the properties that were not freehold ownership.

Non-Freehold properties were less likely to have sold (5.39% of sales last month were not Freehold ownership while 8.13% of all active listings were listed with ownership other than Freehold).

Expensive condominiums (defined as those asking more than $1,000,000 CAD) were much less likely to have sold (4.19% of sales were priced above $1,000,000 CAD while 12.05% of all active listings were asking above $1,000,000).

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.

November 2008 Real Estate Board of Greater Vancouver MLS Statistics

Sebastian — Wed, 03 Dec 2008 18:39:52 +0000

It’s that time of the month once again. It never ceases to amaze me how rapidly one month melts away into the next. In fact, I’ve found that tracking the MLS stats periodically (I do that in this blog both weekly and monthly) makes me more conscious of the passing of time than I have ever been.

In any case, back to the purpose of this post.

Just yesterday, the Real Estate Board of Greater Vancouver (REBGV) released the MLS statistics for November 2008. This months dramatic headline reads, “Slow Home Sales Create Window of Opportunity”. I’m quite certain that’s the second month in a row that they used the term “opportunity” in the headline.

Residential property sales declined 69.7% in November 2008 to 874 from 2,883 sales that were recorded in November 2007.

As for prices, the residential benchmark price declined 12.8% from May to November 2008. This results in an 8.3% decline year over year (from November 2007 to November 2008). The residential benchmark price was $568,411 in May 2008 and is $495,704 in November 2008.

“Time of turmoil, from we always emerge, offer excellent opportunities to buy quality real estate,” says REBGV president, Dave Watt. “For those whose personal finances allow them to get involved, there are opportunities in today’s housing market that have not been seen in many years.”

Along with a decline in sales, we saw a decline in new listings as well. Listings fell 10.8% to 3,012 in November 2008 vs 3,377 in November 2007. Active listings fell 4.7% to 18,348 from 19,257 last month.

Below, you can review a chart I compiled of the MLS data only for Vancouver East and Vancouver West. This provides those interested in Vancouver real estate a much more specific and accurate view of what is happening in your own city.

In reviewing the data, you’ll notice that Vancouver West appears to have had a far worse month than Vancouver East. Sales fell more dramatically, listings did not come down as much and prices dropped more sharply on the Westside than the Eastside last month.

Since hitting a high of active listings in September, we’ve been seeing a steady decline over the past two months (-3.73% this month over last). Fewer listings are selling, but fewer new listings are coming onto the market as well and older listings that haven’t sold are coming off the market.

Here are some specific numbers for the month of November2008. The numbers in the right column indicate the month-to-month change for that statistic:

More Info on Vancouver Real Estate

Do you love real estate statistics? Well, have I got a deal for you! I compile, report and analyze the real estate statistics for Vancouver East and Vancouver West on both a monthly and weekly basis. You can review it all right here:

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.

Weekly Update - Vancouver Real Estate Statistics November 24th - November 30th

Sebastian — Tue, 02 Dec 2008 15:19:00 +0000

Once again, here are the weekly statistics for the Real Estate Board of Greater Vancouver (REBGV) for November 24th, 2008 - November 30th, 2008 for the market area of Vancouver East and Vancouver West.

The weakest sign we are seeing in the statistics is once again a low number of Sales at 69 (0.00%). That number is flat, no up or down movement at all. The silver-lining is that at least the number of Sales isn’t falling any longer (and hasn’t for the last three weeks).

Strengthening signals include the number of New Listings have dropped sharply to 188 (-10.48%). As I mentioned last week, I think that this is largely due to our entering a seasonally slower winter market. Nevertheless, this is the third week in a row that we’ve hit the lowest number of New Listings since I began recording the stats in July 2008.

The significant Sell/List ratio rose once again as a result of the changes in New Listings and Sales numbers. 36.7% (+3.84) is the highest Sell/List ratio that we’ve seen since mid-August 2008. This number has to rise (in combination with Removed Listings) in order for the market to stop it’s decline.

Speaking of Removed Listings, this number ballooned to 410 (+167.97%). In large part, this is due to an enormous rise in Expired listings to 272 (+635.14%). Of course, this rise is what we see at the end of every month.

The result of all these changes is that the total number of Active Listings dropped (slightly) to 5657 (-0.91%). This is a good number, but given that this week was the end of the month where we typically get the highest number of Removed Listings, I would have preferred to see this number drop more significantly.

More Info on Vancouver Real Estate

Should you want to learn more about the Vancouver real estate market generally you can check out this page. You can also review all of the statistics for Vancouver East and Vancouver West broken down for you here:

Enjoy Vancouver real estate statistics? You can find all of the latest stats by area right here:

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.

Weekly Update - Vancouver Real Estate Statistics November 17th - November 23rd

Sebastian — Thu, 27 Nov 2008 02:30:23 +0000

Here are the weekly statistics for the Real Estate Board of Greater Vancouver in the week of November 17th, 2008 - November 23rd 2008 for my market area of Vancouver East and Vancouver West.

As I mentioned last week, there are some consistent signals that give hope to the market perhaps finding a bit more balance. Of course, many of these signals could also be attributed to a busier fall cycle slowing down as we come into winter. Nevertheless, I think that they are worth noting.

New listings fell dramatically two weeks ago, and fell again strongly this past week where they were down to 210 (-18.29%). That’s by far the lowest number of new listings we’ve seen since I began recording these stats weekly in July 2008 (the previous week was previously the record).

Again, sales numbers were very low at 69 (+4.55%). We are still very close to the lowest numbers we’ve seen since I began reporting these numbers, but the trend is upwards. With the drop in new listings and the slight rise in sales, the Sell/List ratio came up to a relatively solid 32.86% (+7.18).

Removed listings dropped once again this past week to 153 (-20.31%). This is also the lowest number we’ve seen since I began reporting this data. Again, this is continuing to surprise me as I expected these to continue to be high. Nevertheless, total Active Listings fell slightly to 5709 (-0.3%).

More Info on Vancouver Real Estate

Enjoy Vancouver real estate statistics? You can find all of the latest stats by area right here:

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.

Meet Vancouver Realtor Sebastian Albrecht

Sebastian — Mon, 24 Nov 2008 21:15:00 +0000

Here’s a video introducing you to Sebastian Albrecht, Vancouver Realtor. Sebastian discusses the geographic areas of Vancouver that he specialises in, as well as how he approaches working with his clients.

More Information on Vancouver Real Estate

Should you want to learn more about the Vancouver real estate market generally you can check out this page.

You can also review all of the statistics for Vancouver East and Vancouver West broken down for you here:

Enjoy Vancouver real estate statistics? You can find all of the latest stats by area right here:

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.

Bad Strata Investments Hurt Condo Owners

Sebastian — Mon, 24 Nov 2008 18:14:11 +0000

There was news recently of two BC Condo complexes that got themselves into some hot water. The problem? They put their contingency fund reserves in risky investments lured by the potential of high returns. Unfortunately, these investments didn’t turn out as planned and now they’ve lost the owners money…to the tune of $100,000 in one case.

BC law prescribes (Strata Property Act Regulations, Section 6.11) what type of investments your strata can make with your contingency reserve fund. These investments (government bonds, GICs, bank account) are typically low risk and low return , but the point is that the money is there when you need it.

If you own a Vancouver Condo, do you know where your contingency reserve fund is invested? You have a right to know. If your Vancouver Condo money is being invested in the wrong type of financial vehicles, you should talk to a lawyer immediately.

What are your options? The lawyer may be able to recoup some losses for you through insurance. Otherwise, you really only have two options. One is to sue your Strata Council, and the other is to absorb the loss. Neither option is a winning one.

You can read the full article here.

More Information on Vancouver Real Estate

Should you want to learn more about the Vancouver real estate market generally you can check out this page.

You can also review all of the statistics for Vancouver East and Vancouver West broken down for you here:

Enjoy Vancouver real estate statistics? You can find all of the latest stats by area right here:

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.

West End Vancouver Real Estate Statistics and Chart for October 2008

Sebastian — Thu, 20 Nov 2008 22:02:39 +0000

Here are the West End real estate market statistics for October, 2008. I’ve included the chart above so that you can see visually what’s been happening in the West End Vancouver real estate market over the course of the year.

West End Vancouver Homes for Sale (West End Vancouver Condos only) - 283

Total Active Listings in the West End Vancouver real estate market rose very slightly to 283. The previous high of 282 was reached in September 2008.

West End Vancouver Homes Sold (West End Vancouver Condos only) - 16

There was a significant drop in the number of sales this past month (down to 16 from 33 the previous month). Average sale price also hit a new low at $370,000. Average days on market fell (a good sign) to 58. The average per square foot price was $504 for Fairview Vancouver condos in October, 2008.

West End Vancouver Home Sale Prices (West End Vancouver Condos only)

There were 5 sales between $200,000 and $300,000, 8 sales between $300,000 and $400,000, 2 sales between $500,000 and $600,000, and 1 sale at $790,000.

More Information on Vancouver Real Estate

You can search West End Vancouver homes for sale right here. Should you want to learn more about the Vancouver real estate market generally you can check out this page.

You can also review all of the statistics for Vancouver East and Vancouver West broken down for you here:

Enjoy Vancouver real estate statistics? You can find all of the latest stats by area right here:

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.

Weekly Update - Vancouver Real Estate Statistics November 10th - November 16th

Sebastian — Tue, 18 Nov 2008 18:09:34 +0000

Here are the weekly statistics for the Real Estate Board of Greater Vancouver in the week of November 10th, 2008 - November 16th, 2008 for my market area of Vancouver East and Vancouver West.

Maybe there is hope after all. While there was week after week of simply worse results, it looks like some positive signs are beginning to emerge more regularly from my weekly roundup of Vancouver real estate statistics. New listings fell significantly this week to 257 (-27.61%). In fact, that’s the lowest number of new listings we’ve seen since I began recording the numbers in July 2008.

The sales number this past week wasn’t astounding, but it didn’t get any worse. In fact, there was one more sale at 66 (+1.54%) than the previous week. If sales aren’t rising significantly, at least they are holding firm. The result of a drop in new listings and firm sales is that the Sell/List ratio came up to a more respectable 25.68% (+7.37).

Removed listings fell this past week to 192 (-15.79%). I’m a little surprised that this number has dropped so significantly. With so few sales, I was expecting to see this number remain consistently high until active listings dropped off to a more sustainable level. The result for this week is that the active listings in Vancouver rose slightly to 5726 (+0.4%).

More Info on Vancouver Real Estate

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.

Fairview Vancouver Real Estate Statistics and Chart for October 2008

Sebastian — Tue, 18 Nov 2008 17:05:28 +0000

Here are the Fairview real estate market statistics for October, 2008. I’ve included the chart above so that you can see visually what’s been happening in the Fairview Vancouver real estate market over the course of the year.

Fairview Vancouver Homes for Sale (Fairview Vancouver Condos only) -328

Total Active Listings in the Fairview Vancouver real estate market rose slightly to 328. The previous high of 320 was reached in September 2008. .

Fairview Vancouver Homes Sold (Fairview Vancouver Condos only) -15

There was a significant drop in the number of sales this past month (down to 15 from 28 the previous month). Average sale price also hit a new low at $463,000. Average days on market fell significantly (a good sign) to 47 (from 70). The average per square foot price was $470 for Fairview Vancouver condos in October, 2008.

Fairview Vancouver Home Sale Prices (Fairview Vancouver Condos only)

There was 1 sale under $300,000, 4 sales between $300,000 and $400,000, 5 sales between $400,000 and $500,000, 3 sales between $500,000 and $600,000 and 2 sales between $700,000 and $800,000.

More Information on Vancouver Real Estate

You can search Fairview Vancouver homes for sale right here. Should you want to learn more about the Vancouver real estate market generally you can check out this page.

You can also review all of the statistics for Vancouver East and Vancouver West broken down for you here:

Enjoy Vancouver real estate statistics? You can find all of the latest stats by area right here:

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.

Mount Pleasant Vancouver Real Estate Statistics and Chart for October 2008

Sebastian — Sat, 15 Nov 2008 06:35:06 +0000

Here are the Mount Pleasant real estate market statistics for October, 2008. I’ve included the chart above so that you can see visually what’s been happening in the Mount Pleasant Vancouver real estate market over the course of the year.

Mount Pleasant Vancouver Homes for Sale (Mount Pleasant Vancouver Condos only) -271

Total Active Listings in the Mount Pleasant Vancouver real estate market dropped slightly to 271. The annual high was reached in September (281).

Mount Pleasant Vancouver Homes Sold (Mount Pleasant Vancouver Condos only) -19

There was a significant drop in sales this past month (down to 19 from 27 the previous month). The previous low was in August at 22. Average sale price also hit a new low at $357,000. Average days on market rose significantly to 95 (from 37) but this is largely due to a small number of units. The average per square foot price was $425 for Mount Pleasant Vancouver condos in October, 2008.

Mount Pleasant Vancouver Home Sale Prices (Mount Pleasant Vancouver Condos only)

There was 1 sale under $200,000, 6 sales between $200,000 and $300,000, 4 sales between $300,000 and $400,000, 6 sales between $400,000 and $500,000 and 2 sales between $500,000 and $600,000.

More Information on Vancouver Real Estate

You can search Mount Pleasant Vancouver homes for sale right here. Should you want to learn more about the Vancouver real estate market generally you can check out this page.

You can also review all of the statistics for Vancouver East and Vancouver West broken down for you here:

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.