Competition for condominiums and townhomes pushed Metro Vancouver* home sales above typical levels in August.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 3,043 in August 2017, a +22.3% from the 2,489 sales recorded in August 2016, and a +2.8% compared to July 2017 when 2,960 homes sold.
Last month’s sales were 19.6% above the 10-year August sales average.
“First-time home buyers have led a surge this summer in demand in our condominium and townhome markets,” Jill Oudil, REBGV president said. “Homes priced between $350,000 and $750,000 have been subject to intense competition and multiple offers across the region.”
There were 4,245 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in August 2017. This represents a -1.1% compared to the 4,293 homes listed in August 2016 and a -19.2% compared to July 2017 when 5,256 homes were listed.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 8,807, a +3.5% compared to August 2016 (8,506) and a -4.2% compared to July 2017 (9,194).
For all property types, the sales-to-active listings ratio for August 2017 is 34.6%. By property type, the ratio is 16.3% for detached homes, 44.8% for townhomes, and 76.3% for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
“Conditions in our detached home market are distinct today from the dynamic in our condominium and townhome markets,” Oudil said. “Detached homes have entered a balanced market. This means there’s less upward pressure on prices and that buyers have more selection to choose from and more time to make their decisions.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,029,700. This represents a +9.4% over August 2016 and a +1% compared to July 2017.
Sales of detached properties in August 2017 reached 901, a +26% from the 715 detached sales recorded in August 2016. The benchmark price for detached properties is $1,615,100. This represents a +2.2% from August 2016 and a +0.2% compared to July 2017.
Sales of apartment properties reached 1,613 in August 2017, a +20.1% compared to the 1,343 sales in August 2016. The benchmark price of an apartment property is $626,800. This represents a +19.4% from August 2016 and a +1.7% compared to July 2017.
Attached property sales in August 2017 totalled 529, a +22.7% compared to the 431 sales in August 2016. The benchmark price of an attached unit is $778,300. This represents a +12.8% from August 2016 and a +1.9% compared to July 2017.