Metro Vancouver home sales exceeded typical historical levels in October with the majority concentrated in the townhouse and apartment markets.
The Real Estate Board of Greater Vancouver reports that residential property sales in the region totalled 3,022 in October 2017, a 35.3% increase from the 2,233 sales recorded in October 2016, and an increase of 7.1% compared to September 2017 when 2,821 homes sold.
Last month’s sales were 15% above the 10-year October sales average.
"Conditions continue to vary significantly based on property type. The detached home market is well supplied with homes for sale, which is relieving pressure on prices,” Jill Oudil, REBGV president said. “It remains a much different story in the townhouse and apartment markets. Buyers of these properties continue to have limited supply to choose from and are seeing upward pressure on prices.”
There were 4,539 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in October 2017. This represents a 14% increase compared to the 3,981 homes listed in October 2016 and a 15.6% decrease compared to September 2017 when 5,375 homes were listed.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,137, a 0.1 per cent decrease compared to October 2016 (9,143) and a 3.5% decrease compared to September 2017 (9,466).
For all property types, the sales-to-active listings ratio for October 2017 is 33.1%. By property type, the ratio is 16.8% for detached homes, 44.8% for townhomes, and 66% for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
“The growth in our provincial economy and job market is contributing to today’s demand,” Oudil said. “The federal government’s announcement of plans to tighten mortgage requirements for the seventh time in the last eight years also helped spur activity in the short term. Many buyers are trying to enter the market before the changes are in place.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,042,300. This represents a 12.4% increase over October 2016 and a 0.5% increase compared to September 2017.
Sales of detached properties in October 2017 reached 940, a 44.2% increase from the 652 detached sales recorded in October 2016 and a 34.6% decrease from the 1,437 sales in October 2015. The benchmark price for detached properties is $1,609,600. This represents a 4% increase from October 2016 and a 0.5% decrease compared to September 2017.
Sales of apartment properties reached 1,532 in October 2017, a 30.1% increase compared to the 1,178 sales in October 2016 and a 0.7% decrease from the 1,543 sales in October 2015. The benchmark price of an apartment property is $642,000. This represents a 22.7% increase from October 2016 and a 1% increase compared to September 2017.
Attached property sales in October 2017 totalled 550, a 36.5% increase compared to the 403 sales in October 2016 and a 17.4% decrease from the 666 sales in October 2015. The benchmark price of an attached unit is $802,400. This represents a 17.7% increase from October 2016 and a 2% increase compared to September 2017.
Source: Mark Moldowan, Communication Strategist, Real Estate Board of Greater Vancouver