December tends to be a slower month with fewer sales and inventory. We saw a 19% decrease in sales and a 50% drop in inventory compared to the previous month.
However, 2019 turned out to be a stronger year than 2018. Sales in 2019 increased by 3% compared to all of 2018. If we compare December 2019 alone to December 2018, sales jumped by 88%. (December 2018 vs December 2019: 1072 sales vs 2016).
The first quarter of 2019 was slow, as buyers were testing out the market, waiting to see how the government policy changes could effect home prices. Despite all these new rules, buyers remained confident and the Vancouver market got stronger month by month. We started the year in 2019 with 9.8 months of inventory and ended the year with only 4.3 months of inventory (4.3 months to sell all inventory if no new listings became available).
So, what does 2020 have in store? Despite all the government policies that were implemented, the market has recovered nicely from the stress test, foreign buyers tax, & vacancy tax. This shows that Vancouver is still very desirable.
If this trend continues and inventory remains low, I wouldn’t be surprised to see prices start inching back up. It’s possible that 2020 will have more sales than 2019. This is a good time for buyers to jump in before prices go up. Sellers can take advantage of this market and list now for top dollars and with less competition!
Contact me if you have any questions about Vancouver’s real estate market.
Oakwyn Realty Downtown Ltd.