The market continued to soften through August, with a sharp decline in sales across the North Shore
The market continued to soften through August, with a sharp decline in sales across the North Shore.
In North Vancouver, sales were 25.9% lower than August 2015, while trending 16% below the 10 year average for the month.
In West Vancouver, sales were 44.4% lower than August 2015, while trending 33% below the 10 year average for the month.
The 15% foreign buyer tax was implemented at a time that the market had already begun to change. With the addition of this government intervention, there is yet no clear indication of the full impact. In the short term, the tax is leading to a lot of uncertainty, which has many delaying their purchase decision and is likely a large reason sales are down so dramatically.
In certain locations and segments that saw record highs earlier in the year, prices are down. This despite low inventory levels (total listings 47% below the Aug 10 year average in North Vancouver, 29% below the Aug 10 year average in West Vancouver).
The general consensus is that as we head into the fall more sellers and buyers will get back into the market. Generally in September new listings rise 80% (10 year % change average Aug vs Sept) What remains unclear is whether buyers will come back into the market too. If buyers do continue to wait, it will likely be lower prices that bring them back. Until then, we expect pricing and sales activity to be inconsistent.
If you are thinking about buying or selling, be strategic. Enter the market if it is a good long term hold, and if selling, list for the current market conditions, which may be below previous highs, but above levels seen previously.