With home sale activity dipping below long-term historical averages, the supply of homes for sale in Metro Vancouver reached a three-year high in June.
The Real Estate Board of Greater Vancouver reports that residential home sales in the region totalled 2,425 in June 2018, a 37.7% decline from the 3,893 sales recorded in June 2017, and a 14.4% decrease compared to May 2018 when 2,833 homes sold.
Last month’s sales were 28.7% below the 10-year June sales average.
“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” Phil Moore, REBGV president said. “Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”
There were 5,279 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in June 2018. This represents a 7.7% decrease compared to the 5,721 homes listed in June 2017 and a 17.2% decrease compared to May 2018 when 6,375 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,947, a 40.3% increase compared to June 2017 (8,515) and a 5.8% increase compared to May 2018 (11,292). This is the highest this total has been since June 2015.
With reduced demand, detached homes are entering a buyers’ market and price growth in our townhome and apartment markets is showing signs of decelerating.
For all property types, the sales-to-active listings ratio for June 2018 is 20.3%. By property type, the ratio is 11.7% for detached homes, 24.9% for townhomes, and 33.4% for condos.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,093,600. This represents a 9.5% increase over June 2017 and is virtually unchanged from May 2018.
Sales of detached homes in June 2018 reached 766, a 42% decrease from the 1,320 detached sales recorded in June 2017. The benchmark price for a detached home is $1,598,200. This represents a 0.7% increase from June 2017 and a 0.6% decrease compared to May 2018.
Sales of apartment homes reached 1,240 in June 2018, a 34.9% decrease compared to the 1,905 sales in June 2017. The benchmark price for an apartment is $704,200. This represents a 17.2% increase from June 2017 and a 0.4% increase compared to May 2018.
Attached home sales in June 2018 totalled 419, a 37.3% decrease compared to the 668 sales in June 2017. The benchmark price of an attached home is $859,800. This represents a 15.3% increase from June 2017 and is virtually unchanged from May 2018.
Source: Craig Munn, Manager Communication, REBGV