The imbalance between supply and demand in the condominium market is creating home buyer competition across Metro Vancouver.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 3,893 in June 2017, a -11.5% from the 4,400 sales recorded in June 2016, an all-time record, and a -10.8% compared to May 2017 when 4,364 homes sold.
Last month’s sales were 14.5% above the 10-year June sales average.
“Two distinct markets have emerged this summer. The detached home market has seen demand ease back to more typical levels while competition for condominiums is creating multiple offer scenarios and putting upward pressure on prices for that property type,” Jill Oudil, REBGV president said.
There were 5,721 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in June 2017. This represents a -2.6% compared to the 5,875 homes listed in June 2016 and a -5.3% compared to May 2017 when 6,044 homes were listed.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 8,515, a nine per cent increase compared to June 2016 (7,812) and a +4.2% compared to May 2017 (8,168).
“Home buyers have more selection to choose from in the detached market today while condominium listings are near an all-time low on the MLS®,” Oudil said. “Detached home listings have increased every month this year, while the number of condominiums for sale has decreased each month since February.”
For all property types, the sales-to-active listings ratio for June 2017 is 45.7%. By property type, the ratio is 24.5% for detached homes, 62% for townhomes, and 93.2% for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
“Market conditions will vary today depending on area and property type,” Oudil said. “It’s important to work with your local REALTOR® to help you understand the trends that are occurring in your community.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $998,700. This represents a +7.9% over June 2016 and a +1.8% compared to May 2017.
Sales of detached properties in June 2017 reached 1,320, a -15.5% from the 1,562 detached sales recorded in June 2016. The benchmark price for detached properties is $1,587,900. This represents a +1.4% from June 2016 and a +1.1% compared to May 2017.
Sales of apartment properties reached 1,905 in June 2017, a -9.6% compared to the 2,108 sales in June 2016. The benchmark price of an apartment property is $600,700. This represents a +17.6% from June 2016 and a +2.9% compared to May 2017.
Attached property sales in June 2017 totalled 668, a -8.5% compared to the 730 sales in June 2016. The benchmark price of an attached unit is $745,700. This represents a +10.7% from June 2016 and a +0.6% compared to May 2017.