Chinese New Year has always been a popular time for buying property, especially around the Greater Vancouver Region (GVR). In fact, a survey from Chinese real estate portal Juwai said that almost half of Chinese New Year travellers would consider purchasing property this year. While that might be the intention, the barrier to move capital out of China was raised much higher last month. So we checked in with Vancouver real estate agent Aaron Best to give us a peek at this year’s numbers. This year’s numbers show fewer buyers of Vancouver real estate during the lunar new year than previous years.
Detached Home Sales Decline 87%
Sales of detached homes had the largest drop during this Chinese New Year vs the years prior. Just 119 sales were logged this year, an 87.28% decline from last year. The average number of sales during this period going back to 2012 is 563, which leaves this year 78% below that number.
Vancouver Chinese New Years Detached Sales
Condo Sales Decline 72%
Condo sales have been doing better than detached homes recently, and this trend extended to buyers during the Chinese New Year… Although not by a whole lot. This year we saw 283 condo sales during the Chinese New Year, a 72% decline from last year. The average going back to 2012 was 608, which is 114% higher than this year’s numbers. Not great, but less than the decline of detached units.
Vancouver Chinese New Years Condo Sales
Townhome Sales Decline 78%
Yes, people still buy townhomes – it’s just a smaller segment than the other two. This year saw 58 sales, a 78% decrease from last year’s lunar new year. This trend averaged 191 sales going back to 2012, 229% higher than this year’s number. This is a much smaller segment, so it’s not as big of deal in my opinion.
Vancouver Chinese New Years Townhouse Sales
When we spoke to Aaron he was careful to note this method doesn’t determine the nationality of buyers. In fact, international buyers weren’t tracked until after last year’s Chinese New Year, so it’ll be impossible to tell who was buying before that. It does however give a good year over year comparison of buying activity, which was substantially weaker this year than the previous five.
Like us on Facebook for the latest housing news.
Contributing editor, stats guy.
Vancouver Detached Home Prices Drop For 6th Month In A Row
One month isn’t a trend, but six? Now we’re starting to see where prices are heading. The latest numbers from the Real Estate Board of Greater Vancouver (REBGV) show that the benchmark price of detached homes declined for the sixth month in a row. January 2017 also saw detached inventory building, and sales decline.
The price for homes across the Greater Vancouver Region (GVR) declined just slightly. Now $1,474,800 will buy you a benchmark home, which is a 0.6% decline from December. While that sounds like bad news for homeowners, prices are still 15.84% higher than the same time last year. Price declines aren’t great, but 15% is still higher than premium real estate markets like Los Angeles.
REBGV regions surrounding Vancouver were a little more mixed. Sunshine Coast saw the greatest gains, with prices increasing 2% from the month prior. The price of a detached benchmark home in Sunshine Coast is now $502,900 – a 26% increase from the same time last year. On the flip side, Tsawwassen saw the greatest single-month decrease. The price of a detached home dropped 1.9% to $1,162,400. At a 26% increase from the same time last year, the decline doesn’t exactly scream “crash” however.
Vancouver Detached Prices
Inventory Is Building
Inventory of detached homes have been building. January 2017 saw 1,915 detached listings, a minor decline of 0.72% from the same time last year. This is a 273% increase from December. Yes, inventory rises in January from December, but January 2016 only saw a 132% increase from the month prior – that’s less than half. This is the trend to watch in my opinion.
While listings built at a faster rate, sales experienced further declines. The REBGV logged 444 single family detached sales, a 57.6% decrease from the same time last year. This also represented an 18% decline from the month prior. A month over month decline is expected in January, but this is more than double the 7.76% decline observed the same time last year.
Vancouver Detached Sales
Not exactly a terrible report, but there are a few things to keep an eye on if you’re looking at buying a detached home. New listings grew at a slower pace than the same time last year, but buyers didn’t show up in the same quantity this time around. Only time will tell if they’re waiting to see prices come down a little further before jumping in, or if the buyers have all dried up for now.
Like this post? Support our work by liking us on Facebook. Bet you thought we were going to ask for money, didn’t you?
Photo: Ruth Hartnup.