The August 2017 stats released by the Real Estate Board Of Greater Vancouver (REBGV) show a month that has turned out to be much busier than anticipated, thanks to continued demand for relatively affordable housing options.
Jill Oudill, REBGV President released the following statement with regards to the August stats: ”First time homebuyers have led a surge this summer in demand in our condominium and townhome markets. Homes priced between $350,000 and $750,000 have been subject to intense competition and multiple offers across the region.”
So while the condo and townhouse market is soaring, the detached home market is seeing a continuation of the trend that has developed over the past few months– slow sales and stalled price growth.
The number of registered home sales in August totaled 3,043. This is a 22.3% increase from the 2,489 sales in August last year and a 2.8% increase from the previous month’s 2,960 sales.
The number of newly listed homes for sale on the Multiple Listing Service (MLS) in Metro Vancouver is 4,245, a 1.1% decrease from August 2016 and a 19.2% decrease from the previous month (July) when 5,256 new homes were listed.
The total number of properties listed on the MLS is 8,807, representing a 3.5% increase when compared to August 2016 and a 4.2% decrease when compared to July 2017.
This ratio gives a good understanding of the supply and demand forces in the market. For all property types the ratio is 34.6% for August.
When classified by property type, the ratio breaks down thus: 16.3% for detached homes, 44.8% for townhomes, and 76.3% for condominiums.
To understand the importance of this ratio, there is downward pressure on prices when the ratio is around or below 12% for a sustained period, and when it is above 20% for a sustained period, there is upward pressure on prices.
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1,029,700. This is a 9.4% increase from August last year and a 0.2% increase from the previous month.
The increase in market activity can more or less be attributable to heightened activity in the condo and townhome property types. Of all sales, condo sales have topped the leaderboard in August.
Get the full report here.
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