Homes sell for well below asking as Metro Vancouver market slumps

By Amy Chen

Homes are selling in Metro Vancouver for up to 20% below asking as the housing market continues to tumble, according real estate sales data.

ThinkPol analysed a random sample of 54 detached house sales in Vancouver, West Vancouver, Burnaby and New Westminster that that took place in the last six months, and found that 42 of them were sold for less than asking, and, in many cases for less than the assessed value.

In one case, the sellers put 5767 Primrose Place, West Vancouver on the market with a $2,250,000 price tag in August 2016, but the property languished on the market for nearly a year without buyers.

Then in July of this year, the sellers finally sold the property for $1,800,000[1] – a discount of $450,000 or 20%[2]

West Vancouver’s most expensive community’s benchmark price dropped by 4.8% overall to $1,346,400 in August 2017 compared to August 2016[3]REBGV Stats Package August 2017, with single family detached house prices tumbling 6.3% year-over-year to $3,189,500.

But West Vancouver is not the only neighbourhood where discounts are to be had.

1180 Queens Avenue, another West Vancouver property, appeared on the market for $4,500,000 in January of this, but after not moving for six months, was finally sold for $3,870,000 – a markdown of $630,000[4] or 14%[5]

Another property at 1030 Ingleton Avenue Burnaby sold in May for $1,570,000[6] after being listed more than three months earlier for $1,689,800[7]

Metro Vancouver’s prices are plunging as authorities in both China and Canada warning of “problematic conditions” as the average price for single family homes plummeted by 12% from $1.83 million[8]
to $1.61 million[9]
in the three months since May.

“Metro Vancouver’s housing market continues to show strong evidence of problematic conditions due to moderate evidence of price acceleration and strong evidence of overvaluation,” Canada Mortgage and Housing Corporation warned in its 2017 third quarter Housing Market Assessment.

“Overvaluation is detected when house prices remain significantly above the levels warranted by fundamental drivers of housing markets such as income, population, and actual and expected financing costs,” according to the CMHC.

References   [ + ]

3. REBGV Stats Package August 2017