North Shore September sales continued to trend down.
North Shore September sales continued to trend down.
The introduction of the "Foreign Buyer Tax" appears to have accelerated a shift in demand, with the top end of the market most affected. Adding to the shift will be the newly announced Federal mortgage regulations, which impose stricter lending requirements on insured mortgages. Ultimately these new rules will impact affordability as many buyers will no longer qualify for as much financing.
In the short term, with softening demand, we expect inconsistencies throughout the market as it attempts to stabilize.
By the Numbers
As is common for this time of year, listings were up from August with a 66% increase in North Van and 80% in West Van. At the same time, sales in North Van were up 14%, while West Van sales declined 25%.
A clearer indication of the market can be seen when comparing to September 2015 and third quarter (Q3) results. In North Vancouver sales were down 28% from September 2015 and 23% versus Q3 2015. In West Vancouver sales were down 59% from September and 47% versus Q3 2015. Of this, the detached home market was the softest segment, seeing sales down 49% in North Van and 65% in West Van from September 2015.
If you are thinking about selling, be strategic and price for where the market is today, or likely headed, versus where it was. Although values appear to be trending down from peaks, they are still well above previous highs, and with a cooler market the process of buying and selling can be easier as there is generally more time to make an informed decision and complete one’s due diligence.