BC Business
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
The busy condo market is creating competition among buyers in Metro Vancouver as the number of listings has been declining since February.
In a release, the Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 3,893 in June 2017, an 11.5 per cent decrease from the 4,400 sales recorded in June 2016, an all-time record, and a decrease of 10.8 per cent compared to May 2017 when 4,364 homes sold.
Last month’s sales were 14.5 per cent above the 10-year June sales average.
But condo demand has outstripped supply.
“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,” according to Jill Oudil, REBGV president.
There were 5,721 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service (MLS) in Metro Vancouver in June this year, which represents a 2.6 per cent decrease compared to the 5,875 homes listed in June 2016 and a 5.3 per cent decrease 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 9 per cent increase compared to June 2016 (7,812) and a 4.2 per- ent increase 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 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.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
View the full report at www.rebgv.org