REBGV Market Update For June 2021 – Home Prices Have Marginally Slowed Down From The Record Setting Pace Set Earlier This Year
The June 2021 market report released by the Real Estate Board of Greater Vancouver (REBGV) reported that while still elevated, home sale and listing activity has eased back from the record-setting pace set earlier this year.
“Metro Vancouver’s housing market continues to experience strong seller’s market conditions, although the intensity of demand has eased from what we saw throughout most of the spring,” REBGV economist Keith Stewart said. He added that low interest rates, a growing economy and an improving job market is continuing to create solid economic fundamentals for the Metro Vancouver housing market.
“We’re now seeing a market that’s beginning to normalize from the torrid pace in the spring. This is making multiple offers less common, allowing subjects to be seen on offers more frequently again, and is making new price records less likely.”
In June 2020, there were 3,762 residential property sales. This represented a 54% increase from the 2,443 sales in June 2020 and a 11.9% decrease from the 4,268 homes sold in May 2021.
The number of detached properties sold was 1,262, 45.7% more than June 2020.
The number of apartments sold was 1,774, 60.5% more than June 2020.
The number of attached properties sold was 726, 53.8% more than June 2020.
There were 5,849 new listings of detached, attached and apartment properties for June 2021 added to the Multiple Listing System (MLS). This represented a 1.1% increase compared to the 5,787 homes listed in June 2020, and a 17.9% decrease compared to May 2021 when 7,125 homes were listed.
The total number of homes listed for sale in June on the MLS was 10,839, a 5.1% decrease compared to June 2020 (11,424) and a 1.2% decrease compared to May 2021 (10,970).
This is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio is below 12% for a sustained period, and there is upward pressure when the ratio is above 20% for a number of months.
For all property types, the ratio in June was 34.7%. When broken down by property types, the ratio was:
5% for detached homes
2 % for townhomes
1% for condominiums
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,175,100. This represents a 14.5% increase over June 2020 and a 0.2% increase compared to May 2021.
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