Vancouver condos are almost too hot to touch this summer, with low inventory, high competition and prices on the rise, according to the latest sales stats reported by the Real Estate Board of Greater Vancouver (REBGV). Meanwhile, the single-detached housing market appears to be leveling off.
Vancouver area home sales totalled 3,893 in June 2017, down 11.5 per cent from the 4,400 sales tallied in June 2016 (an all-time record), and down 10.8 per cent month over month.
Despite the decline, June 2017 home sales were still 14.5 per cent above the 10-year average for the month of June.
Increased demand for Vancouver condos is creating the perfect storm for competition, bidding wars and rising prices
“Two distinct markets have emerged this summer. The detached home market has seen demand lease back to more typical levels, while competition for condominiums is creating multiple offer scenarios and putting upward pressure on prices for that property type,” says Jill Oudil, REBGV president.
There were 5,721 newly listings on the Multiple Listing Service (MLS) in Metro Vancouver in June – a 2.6-per-cent drop in listings year over year, and down 5.3 per cent compared to May 2017, when 6,044 homes were listed.
New and existing listings on the MLS totalled 8,515, up nine per cent compared to one year ago, and a 4.2-per-cent increase over May 2017.
“Homebuyers have more selection to choose from in the detached market today while condominium listings are near an all-time low on the MLS,” says Oudil. “Detached home listings have increased every month this year, while the number of condominiums for sale has decreased each month since February.”
The sales-to-active-listings ratio for June 2017 is 45.7 per cent. By property type, the ratio is 24.5 per cent for detached homes, 62 per cent for townhomes, and 93.2 per cent for condominiums.
Analysts say that prices fall when the ratio dips below 12 per cent for a sustained period, while home prices often increase when that ratio surpasses 20 per cent over several months.
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $998,700. This represents a 7.9-per-cent increase over June 2016 and a 1.8-per-cent increase compared to May 2017.
Sales of detached homes in June 2017 reached 1,320, down 15.5 per cent year over year. The benchmark price for detached properties is $1,587,900. This represents a 1.4-per-cent increase from June 2016 and a 1.1-per-cent increase compared to May 2017.
Sales of apartment properties reached 1,905 in June 2017, a decrease of 9.6 per cent compared to June 2016. The benchmark price of an apartment property is $600,700, up 17.6 per cent from June 2016 and a 2.9-per-cent increase compared to May 2017.
Attached property sales in June 2017 totalled 668, a decrease of 8.5 per cent compared to the 730 sales in June 2016. The benchmark price of an attached unit is $745,700. This represents a 10.7-per-cent increase from June 2016 and a 0.6-per-cent increase compared to May 2017.