The Greater Vancouver housing market seems to be strengthening as it enters the summer months, with MLS® home sales in June 2014 increasing 28.9 per cent compared with June 2013, according to Real Estate Board of Greater Vancouver (REBGV) statistics released July 3.
The 3,406 home sales were a 3.7 per cent increase over sales in May 2014, and were 0.6 per cent above the 10-year sales average for June of 3,386.
"Competition amongst home buyers today is as strong as it's been in the region since 2011," said Ray Harris, REBGV president.
Sales and Listings
For the second month, the sales-to-active-listings ratio has been over 20 per cent. This ratio gives us the rate of absorption of properties on the market, and the Real Estate Board of Greater Vancouver considers anything over 20 per cent a seller’s market… but with the caution that the ratio has to stay up there for a few months. June’s 21.3 per cent is the highest it’s been since June 2011. If July’s numbers continue the trend, we’ll finally be able to say the words “seller’s market” out loud.
Of the 3,406 home sales, 1,462 were detached houses, 636 were townhouses or other attached properties and 1,308 were apartments.
What’s Up, What’s Down – At a Glance June/ May 2014 June 2014 / June2013 Overall Sales +7.7% +14% - Detached +8.8% +19.9% - Townhome +0.9% +2.4% - Apartment +9.7% +13.2% New Listings -0.2% +5% Current Listings +3.6% -6.7%
This is the time of year when new listings start dropping off as people get on with their summer. A total of 5,339 properties were added to the Greater Vancouver MLS® in June, down 10.1 per cent from May, but up 9.5 per cent over June 2013. The new listings total was 2.6 per cent below the region’s 10-year average for the month.
Monthly new listing totals have been consistently higher this year than last year, but the active listings have been consistently lower. Altogether, 16,011 properties are currently listed for sale compared to 17,289 last June. Sales are what’s keeping the active listings low and the sales-to-active-listings ratio high.
Benchmark Price (MLS® Home Price Index)
The strong demand pushed the MLS® benchmark price for all residential properties up to $628,200 – a 4.4 per cent increase compared with June 2013, and a rise of 0.7 per cent from May.
Here’s how the price changes break down by housing type:
Greater Vancouver MLS® Benchmark Prices % Change June 2014 May 2014 June 2013 Detached $976,700 +1.1% +6.2% Townhome $471,200 +0.5% +3.1% Apartment $378,000 +0.1% +2.4%
The overall increase is mainly due to detached house prices. A 1.1 per cent increase doesn't look like much, but when you’re throwing around numbers like $976,700, the average benchmark price for a house in Greater Vancouver is $10,200 more than it was in May.
In the last six months alone, benchmark house prices have risen anywhere from 1.6 per cent in Pitt Meadows to 9.2 per cent in Burnaby North. In 10 of the 18 FVREB areas, house prices have jumped 6 per cent or more since the beginning of the year: Burnaby East, North and South, New Westminster, North Vancouver, Squamish, Vancouver East and West, West Vancouver and Whistler.
Meanwhile townhouse and condo prices have been moving more slowly. In townhouses, only Vancouver West and Squamish had six-month price increases of 6 per cent or more. Condo prices appreciated the least in six months. Only Ladner had price appreciation of 6 per cent or more, while 12 of the 18 FVREB areas had price increases under 4 per cent, and four areas had decreases.
In the latest REBGV video, president Ray Harris looks at local demand around Greater Vancouver.
Read the full REBGV report here.
See also:
Strongest Fraser Valley June Home Sales in Four Years: FVREB
