For the first time ever, the benchmark price of a home in Metro Vancouver exceeded the one-million-dollar mark, hitting $1,019,400 in July. But with a drop in sales and a boost in supply, the region’s real estate board says the market is reflecting more normal summer levels.
“It was a very interesting statistic seeing the average pop over $1 million,” Jill Oudil, Real Estate Board of Greater Vancouver (REBGV) president tells BuzzBuzzNews.
“I think that a lot of that certainly was pushed by the increase in the condominium and townhome sector,” she adds.
Condos saw the greatest year-over-year price gain last month, sitting at $616,600, an 18.5 per cent surge from a year ago, according to the latest data REBGV.
In the detached sector, the benchmark price of a home was $1,612,400 last month, up 2 per cent from July 2016. Meanwhile, the benchmark price of an attached home was $763,700, representing a 12 per cent increase from July last year.
“We’ve seen a huge surge in the demand for both condominiums and townhomes and the price ranges due to that supply and demand ratio is what has increased the prices in those categories quite a lot more,” says Oudil.
As buyers continue to opt for more affordable condos in the region, overall home sales took a hit last month with 2,960 transactions, down 8.2 per cent from last year.
Although sales in the region plummeted year-over-year last month, Oudil says activity in the region is reflecting historically normal levels for summer months.
“We are pretty much mirroring the 10-year July sales average so it’s definitely a more normal market then we have been which has been a lot more active,” says Oudil.
Fewer home sales were met with an increase in supply last month, as a total of 5,256 properties were newly listed in July — an uptick of 0.3 per cent compared to the 5,241 homes listed a year ago.
The amount of supply currently listed on the Multiple Listing Service (MLS) has also increased year-over-year with 9,194 properties, up 10 per cent from the 8,351 listings in July 2016.
“We did see a drop in sales so what’s happen there is coming into July of course we have a little bit more inventory. We also have over 9,000 listings right now which we haven’t seen this year at all,” says Oudil.
Unsurprisingly, last month condo sales in Metro Vancouver topped the list out of all property types (including detached and attached) with a total of 1,468 units sold. However, this level still represents an 8.4 per cent drop from the 1,602 sales recorded in July 2016.
Meanwhile, a total of 949 detached sales were recorded last month, up roughly 12 per cent from the 1,077 transactions a year ago. In the attached segment, a total of 543 homes sold in July, a slight 0.7 per cent decrease compared to the 547 sales in July 2016.
With a sales-to-active listings ratio for all property types of 32.2 per cent, REBGV says upward pressure continues to be placed on prices.
Usually, when the ratio dips below 12 per cent for a sustained period of time home prices experience downward pressure, says the real estate board. Conversely, when the ratio exceeds 20 per cent over several months it puts upward pressure on home prices.