Well, as many of you may know, the stats are in for the month of August 2016. As expected, the market slowed-down which is to be expected for this lazy summer month. I mean, why write offers or walk through open houses when you could be at the lake barbequeing with friends!
One of the most frequently asked questions right now is how the 15% Transfer Tax for foreign entities (I say entities because the tax also includes foreign corporations) is affecting the market. The simple answer to that is that it depends on where we are talking about and what type of home we are talking about. I went through a pretty thorough explanation of this on my previous article so feel free to have a read of that too. The honest truth is that it is too early to see the actual effects of the market. As I see it, the market took a step back as there was a lot of confusion about who is considered a foreign investor. We will have a clearer idea of the impact towards November when we ge the results for the fall market. Stay tuned for more info...
So here is the breakdown of the stats for detached homes in the Greater Vancouver Region, Westside and Eastside Vancouver:
3-Year Sales to Active Ratio
The sales to active ratio tells you whether it's a Buyer's, Seller's or balanced market. In August, the ratio indicates that we are now in a buyer’s market for detached homes.
10-Year Average Sales Price
Sales prices have stabilized in recent months with a drop in August. In August, the average home sold for $1.507 million in the region, $1.507 million in Van East and $3.983 for the Westside.
Average Percent of Original Price
For the first time since the beginning of the year, we have seen prices that are below asking price. In August,
· the average detached home sold for 97.6% of asking for the region, 97.9% in Van East and 96.1% for the Westside.
· In August, there were 5,248 detached homes for sale in the Region. Of those, 634 were in Van East and 634 in the Westside. Compared to the same month last year, this represents +5.6 for GV, +40.3 for VE and -8.2 for VW.