REBGV Market Update For August 2020 – Homes Getting More Expensive As Sales Surpass Historical Average By 20 Per Cent
Homes in Metro Vancouver became more expensive as was made clear in the August 2020 market report released by the Real Estate Board of Greater Vancouver (REBGV). The benchmark price of all homes rose in August as sales exceeded historical records for the month.
“People who put their home buying and selling plans on hold in the spring have been returning to the market throughout the summer. Like everything else in our lives these days, the uncertainty COVID-19 presents makes it challenging to predict what will happen this fall.” Colette Gerber, REBGV Chair said. “Low interest rates and limited overall supply of homes for sale are creating competition in today’s housing market,” Gerber added. “Your local REALTOR® can help you navigate today’s market and ensure that the latest public health requirements are followed at every step of the process. Above all, safety has to remain our top priority during this pandemic.”
There were 3,047 residential property sales registered in August 2020 for the region. The same period last year registered 2,231 sales and July 2020 registered 3,128 sales.
The number of detached properties sold was 1,095, a 55% increase from the 706 homes sold in August 2019.
The number of apartments sold was 1,332, a 19.4% increase from the 1,116 apartments sold in August 2019.
The number of attached properties sold was 620, a 51.6% increase from the 409 sales in August 2019.
In August, there were 5,813 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver.
This was a 55.1% increase compared to the 5,747 homes listed in August 2019, and a 2.3% decrease compared to July 2020 when 5,948 homes were listed.
The total number of homes listed for sale on the MLS® system in Metro Vancouver was 12,803, a 4.4% decrease compared to August 2019 (13,396) and a 6 % increase compared to July 2020 (12,083).
This ratio gives a better understanding of the relationship between supply and demand 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 sustained periods.
For all property types, the ratio in August was 23.8%. When broken down by property types, the ratio was:
23.7% for detached homes.
30.5 % for townhomes.
21.6% for condominiums.
In August, the MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,038,700. This was 5.3% higher than August 2019 and a 0.7% increase compared to July 2020.
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The real estate landscape in Vancouver is changing dramatically. If you are buying or selling a home, you need to get in touch with an experienced real estate company such as ours to navigate this transitional market. Contact us by email or call us on 604 913 1000.