July 2017 North Shore Market Update
August marks the 1 year anniversary of the implementation of the 15% Foreign Buyer Tax.
How has the market fared?
The tax was introduced at a time when the market was slowing and it accelerated the shift. Sales declined every month since, with total sales since down 27.6% in North Vancouver and 48.1% in West Vancouver (versus the year before with no tax Aug 16-July 17 vs Aug 15-July 16).
The segment with the greatest impact was the higher-end and single family homes, which saw sales fall sharply. Strata title properties felt an initial slow down as the market absorbed news of the tax, yet continued largely unaffected (likely spurred on, in part, by their relative affordability, as well as the government’s first-time buyer loan program).
Since the beginning of the year, activity has slowly picked up across all property types, yet continued well below 2016 levels. In North Vancouver, sales were down 15% from July 2016, while West Vancouver saw sales decrease 16%.
Despite this significant drop in sales, prices are back or near to their pre-tax peaks, and in many cases higher.
Ending the month, the average price of a single family house in North Vancouver was $1,800,000 (+8.2% vs July 2016), while the average price of a single family house in West Vancouver was $2,775,000 (-9.9% vs July 2016).
The average price of a condo in North Vancouver was $691,000 (+45.5% vs July 2016), while the average price of a condo in West Vancouver was $1,054,000 (+23.3% vs July 2016).
The average price of a townhouse in North Vancouver was $1,025,000 (+12.6% vs July 2016), while the average price of a townhouse in West Vancouver was $1,674,500 (+14.3% vs July 2016).
This inconsistency between sales and prices is something that should be watched with interest. Likely keeping the market in check is listing inventories which remain well below historical levels. In North Vancouver total listings were down 38.7% from the 10 year July average, while total listings in West Vancouver ended the month down 15.5%. Unless inventory rises dramatically, expect inconsistencies to remain in the market.
Factors to watch moving forward: The change in government, increased interest rates (variable and fixed), increased value of the Canadian dollar making it less attractive for foreign buyers, and near record pricing.
As always, if you have any questions about our North and West Vancouver real estate market review, how it relates to your home or investment property, or implications for your next purchase, we’d be pleased to discuss with you. We can be reached at 604.983.2518.
To read the Real Estate Board of Greater Vancouver's stats report, click here >>
Interested in receiving our Monthly North Shore Real Estate Market stats report by email? Subscribe at the link below.
North Vancouver Real Estate Market Stats // July 2017
|North Vancouver Listings and Sales Stats|
|Average Sale Price [SF] ($)||1,800,000||1,664,000||+8.2|
|Days on Market||9||9||--|
West Vancouver Real Estate Market Stats // July 2017
|West Vancouver Listings and Sales Stats|
|Average Sale Price [SF] ($)||2,775,000||3,080,000||-9.9|
|Days on Market||33||22||+50.0|
Sales, listings, and price data from the Real Estate Board of Greater Vancouver. *Days on Market and Average Sale Price are calculated as the Median amount. Medians not available for periods with less than 20 sales.