This month the Real Estate Board of Greater Vancouver (REBGV) kicked off the summer with the headline Summer Housing Market Trends Toward Balance After An Active Spring Season. As always it really depends on what sector of the market you are looking at! In the hottest part of the market, regarding single detached homes this may be true but in the condo market we are shifting to a “buyer’s market.” (Anecdotally, I was out previewing inventory downtown (Friday, July 8, 2011) and all of the agents I met at the Realtor’s Opens remarked on how light their traffic had been. Agents and their clients are starting to take a break!)
The REBGV stated that, “Home sellers outpaced buyers on Greater Vancouver’s Multiple Listings Service® (MLS®) in June, drawing the market back toward balance this summer.” Residential property sales of detached, attached and apartment properties reached 3,262 in June, a 9.8% jump compared to the 2,972 sales in June of 2010 but from May to June we saw a 3.4% drop to 3,377.
New listings for the entire market in Metro Vancouver totalled 5,793 in June. This represents a 4.5% bump compared to June 2010 when 5,544 properties were listed for sale on the MLS® and a 2.3% decline compared to May 2011’s 5,931 new listings.
Rosario Setticasi the REBGV’s President said, “With sales below the 10-year average and home listings above what’s typical for the month, activity in June brought closer alignment between supply and demand in our marketplace… With a sales-to-active-listings ratio of nearly 22%, it looks like we’re in the upper end of a balanced market.” In other words, things are slowing down.
At 15,106, the total number of residential property listings on the MLS® increased 3.1% in June compared to May. There was a 14% fall away from the same period last year.
The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Metro Vancouver over the last 12 months has jumped 8.7% to $630,921 in June 2011 from $580,237 in June 2010. Please keep in mind that many Richmond, Westside and West Vancouver properties have skewed the numbers to a degree and this representation is not fair to place on all local markets!
Setticasi also stated, “Since the end of May, the benchmark price of a detached home rose more than $147,000 on the Westside of Vancouver and over $80,000 in West Vancouver. Detached home prices in Richmond, however, levelled off slightly, declining $25,000 in June.”
Sales of detached properties on the MLS® in June 2011 reached 1,471, an increase of 29.1% from the 1,139 detached sales recorded in June 2010, and an 11.8% decrease from the 1,667 units sold in June 2009. The benchmark price for detached properties spiked 13.4% per cent from June 2010 to $901,680.
Sales of apartment or condo properties reached 1,266 in June 2011, a 0.6% nudge compared to the 1,258 sales in June 2010, and dropped off significantly 29.3% compared to the 1,790 sales in June 2009. The benchmark price of an apartment/condo property rose as forecasted 3.5% from June 2010 to $405,200.
Attached property or townhouse sales in June 2011 totalled 525, an 8.7% decline compared to the 575 sales in June 2010, and a 34.5% drop from the 802 properties that sold in June 2009. The benchmark price of an attached/townhouse unit increased 6% (better than expected) between June 2010 and 2011 to $522,424.
If you are looking to get into the market (more specifically the condo market), now is a good time to be out making offers while most of your competition are going away for holidays. The sellers that are around will only get more motivated as the supply edges up and demand is waning. If you are looking to sell (depending on your timeline) it may be better to wait until the fall (which is seasonally our second busiest time of the year) or price your property sharply to attract attention and a sale.