The highlight of the July 2020 market report released by the Real Estate Board of Greater Vancouver (REBGV), showed that home sales and prices rose in July as more homebuyers took advantage of low interest rates to boost activity.
“We’re seeing the results today of pent up activity, from both home buyers and sellers, that had been accumulating in our market throughout the year. Low interest rates and limited overall supply are also increasing competition across our market, ” Colette Gerber REBGV Chair said.
“Safety remains the top priority for our REALTOR® community,” Gerber added. “We continue to limit in-person interactions with clients and employ different technology solutions to ensure home buyers and sellers can get as much information as possible in a virtual setting.”
In July 2020, realtors registered 3,128 residential property sales. This represented a 22.3% increase from the same period last year, and a 28% increase from the 2,443 homes sold in June 2020. July sales were 9.4% above the 10 year July sales average. The number of detached properties sold was 1,121, 33.3% more than than July 2019. The number of apartments sold was 1,400, 12.4% more than July 2019. The number of attached properties sold was 607, 28.3% more than July 2019. For a change, detached homes were the fastest growing segment in terms of climbing prices and sales volume.
In July, there were 5,948 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver. This represented a 28.9% increase compared to the 4,613 homes listed in July 2019, and a 2.8% increase compared to June 2020 when 5,787 homes were listed. The total number of homes listed for sale in July increased to 12,083, a 28.9% increase when compared to the same month last year, and a 5.8% increase when compared to June 2020.
This ratio is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for a number of months. For all property types, the ratio in July 2020 was 25.9%. When broken down by property types, the ratio was:
– 25.1% for detached homes
– 31.1 % for townhomes
– 24.7% for condominiums
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,031,400 in July. This represents a 4.5% increase from July 2019, and a 0.6 per cent increase compared to June 2020.
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If you are planning on entering the real estate market with the present conditions, it is advisable to talk to an experienced real estate company, such as ours, to guide you effectively. If you are looking to buy or sell a home, contact us by email or call us on 604 913 1000.