The three types of markets shown in the graph above are measured by a sales-to-active-listings ratio which essentially is the rate at which properties are selling. Expressed as a percentage, you can calculate the ratio by taking the total number of sold homes in any month and dividing it by the total number of active listings at the end of the same month.
A buyer's market is a situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations. The opposite of a buyer's market is a seller's market, a situation in which demand exceeds supply and owners have an advantage over buyers in price negotiations.
The sales-to-active-listings ratio for:
- a seller's market, which means there are more buyers than properties available, is represented by a ratio of 20 % or higher
- a buyer's market, which means there are properties available than buyers, is represented by a ratio of 14 % or lower
- a balanced market, where supply and demand are pretty much the same, rests between 14-19 %.
For all property types in July 2018, the sales-to-active-listings ratio for Squamish was 24.83 %, indicating that, on average, there are more buyers than properties available.
By property type, the ratio is:
- 13.4 % for detached homes (a buyer’s market);
- 30.0 % for townhomes, (a seller’s market), and
- 31.1 % for condominiums, (a seller’s market).
For all Whistler property types, the sales-to-active-listings ratio for July 2018 was 21.86 %, again indicating that there are more buyers than properties available.
By property type, the ratio is:
- 11.7 % for detached homes, (a buyer’s market);
- 37.5 % for townhomes, (a seller’s market), and
- 16.4 % for condominiums, (a balanced market).
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 % mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 % over several months.
As you can see from the Whistler graph, condominiums (condos) have dropped into a balanced market for the first time since January 2017. Townhomes, on the other hand, have tracked in a seller’s market for several years, hence their prices have continued to experience upward pressure. Detached properties have ebbed and flowed around a balanced market for many months, typically providing buyers with more choice when house-hunting along with increased negotiating power when it comes to a sale.
The Squamish graph shows a much more volatile trend with condos and townhomes bouncing from an extreme seller’s market with the occasional dip into a balanced market since January 2017. Parallel to Whistler, detached properties have ebbed and flowed around a balanced market for the last couple of years.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in July 2018 on the Multiple Listing Service® (MLS®) in Whistler totalled 38 from 192 active listings. In Squamish, 47 homes were sold from 242 active listings.
So let’s take a closer look…
SquamishSales of detached properties in July 2018 reached 21, a decrease of 8.7 % from the 23 sales recorded in July 2017. The benchmark price for detached properties is $1,038,600. This represents a 7.1 % increase from July 2017 and a $400 increase from the $1,039,000 benchmark price of June 2018.
Detached homes are spending an average of 51 days on the market, a slight increase of just 2 days from the 49-day average of June 2018. There were 157 detached properties listed for sale in July. This represents a 17.2 % increase compared to the 134 homes listed in July 2017.
Sales of apartment/condo properties reached 14 in July 2018, a decrease of 12.5 % compared to the 16 sales in July 2017. The benchmark price of an apartment property is $536,300, which is nearly on par with Whistler condos. This represents a 20.3 % increase from July 2017 and $6000 increase from the $530,300 benchmark price of June 2018.
Attached property sales in July 2018 totalled 12, a decrease of 53.8 % compared to the 26 sales in July 2017. The benchmark price of an attached unit is $874,200. This represents a 30.6 % increase from July 2017 and $25,600 decrease from the $899,800 benchmark price of June 2018.
WhistlerSales of detached properties in July 2018 reached 9; no change from the 9 detached sales also recorded this time last year in July 2017. The benchmark price for detached properties is $1,694,900. This represents a 6.3 % increase from July 2017 and a $21,300 decrease from the $1,716,200 benchmark price of June 2018.
Sales of apartment properties reached 11 in July 2018, a decrease of 56.0 % compared to the 25 sales in July 2017. The benchmark price of an apartment property is $572,200. This represents a 16.5 % increase from July 2017 and $4,300 decrease from the $579,500 benchmark price of June 2018.
Attached property sales in July 2018 totalled 18, a decrease of 21.7 % compared to the 23 sales in July 2017. The benchmark price of an attached unit is $1,035,400. This represents a 34.9 % increase from July 2017 and $40,400 decrease from the $1,075,800 benchmark price of June 2018. This last statistic is probably the most staggering as the MLS® HPI Benchmark Price for attached properties/townhomes in July 2017 was $767,700, reflecting a $267,700 increase in 12 months.
Interestingly, housing supply is up and demand is down across Metro Vancouver with July’s residential housing sales reaching their lowest levels for that month since the year 2000. Last month’s sales were 29.3 % below the 10-year July sales average.
“Summer is traditionally a quieter time of year in real estate. This is particularly true this year,” Phil Moore, REBGV president said. “With increased mortgage rates and stricter lending requirements, buyers and sellers are opting to take a wait-and-see approach for the time being.”
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