The Real Estate Board of Greater Vancouver (REBGV) reported, “Balanced conditions provide a stable backdrop for today’s home buyers and sellers. The Greater Vancouver housing market continues to maintain a relative balance between the number of homes for sale and the number of people looking to purchase a home in the region today.” There is no doubt confidence remains in the Vancouver Real Estate Market and that while some consumers have chosen to withdraw to the beach, the pace is still brisk…following in-line with the Board’s observation of balance.
Sandra Wyant, REBGV President said, “As the term suggests, a balanced market means the key housing market indicators…(such as price)…are stable and conditions therefore are not tilted in favour of buyers or sellers. If you plan to enter the market today, identify your needs, consult your REALTOR® and work to build a ‘win-win’ scenario with the people on the other side of the sale.” I think this is a great sentiment and never more true than today.
The REBGV reported on June’s residential property sales for Metro Vancouver which reached 2,642 on the Multiple Listing Service® (MLS®). When looking at the year-over-year numbers, this is a jump of 11.9% over the 2,362 sales recorded in May last year, which indicates a bit of a bounce back from a slower year. However, in comparison to the month before (May), there was a drop of 8.3% (2,882) in June. This is typical as May tends to reach a high point for number of sales in the year.
When putting these numbers into a historical context, last month’s sales were 22.2% off the 10-year sales average for the month. A key point to remember is there has been a paradigm shift, as the government has ratcheted down banking requirements over the last few years to constrain the market, so this would be somewhat expected as the government adjustments have had the desired affect.
New listings for all sectors of the residential market in Metro Vancouver counted 4,874 properties. When compared to last year, this represents a 13.2% shift downwards when compared to the 5,617 new listings in June of 2012. When evaluating the listings month-over-month, there was a 13.8% decline in June, compared to the 5,656 new listings in May of this year.
When looking at all the residential homes listed on the MLS® in Metro Vancouver, there are 17,289 properties for sale. This has dropped off 6% from last year at the same time. When following the market from May to June, there is a 0.4% rise in the level of inventory. When following the 10-year-average for listings the market again follows below the trend line by 11.5%.
Overall Market Numbers
The number of sales are dropping month-over-month (by the above noted 8.3%) and inventory is rising by 0.4%. Interpreting these numbers suggests it is not very likely to have pressure on the pricing for it to go up overall in the near term, as the supply increases and the demand decreases over the summer.
The talk of a balanced market is confirmed by evaluating the pace of the market by way of the sales-to-active-listings ratio. Currently this ratio remains perched at 15% in Metro Vancouver. As this is the fourth straight month this ratio has been at or above 15% we continue to see stable and balanced conditions.
The Metro Vancouver MLS® Home Price Index (HPI) composite benchmark price for all residential properties is $601,900. When looking at the most recent height of the market last year, the pricing is down by 3%, yet we are up 2.3% over the low point of January this year. So there has been a market correction downwards and it is now on the way back up again. (Remember however, the market is not static and rarely stays trending one way for long, and it is always in motion, moving up or down.)
Sales of detached properties in June, 2013 for Metro Vancouver:
– 1,102 units – ↑ 19.7% compared to 921 sales in June, 2012.
The benchmark price ↓ 4.3% from the year before to $919,900.
Sales of apartment/condo properties in June, 2013 for Metro Vancouver:
-1,068 units – ↑ 4.1% compared to 1,026 sales in June, 2012.
The benchmark price of an apartment property ↓ 3.7% from the year before to $369,100.
Sales of attached property/town homes in June, 2013 for Metro Vancouver:
-472 units – ↑ 13.7% compared to 415 sales in June, 2012.
The benchmark price of an attached property ↓ 2.4% from the year before to $457,000.
Download the complete stats package by clicking here.
Source: The Real Estate Board of Greater Vancouver News Release, July 3, 2013.