Vancouver’s Real Estate Market Signals Opportunity for Buyers

June 2012 – Vancouver Real Estate UpdateMarketUpdate

Real Estate Board of Greater Vancouver (REBGV) has recently reported that “Greater Vancouver housing market favoured buyers in June.” I have been talking about this coming for the last few months. No big surprises here, as the number of residential property sales hit a 10-year low in Metro Vancouver for June, while prices remained relatively stable.

The REBGV reported that across all of the residential sectors (detached, attached and apartment properties) total sales only reached 2,362 in June, which is a 27.6% drop compared to the year before when there were 3,262 sales. They also noted a 17.2% slump compared to the 2,853 sales in May,2012. In fact, June sales were the lowest total for the month, in the entire region since 2000, and was 32.2% under the 10-year June sales average of 3,484.

When evaluating the condition of the market Eugene Klein, the REBGV President, noted that, “Today, our sales-to-active-listings ratio sits at 13 per cent, which puts us in the lower end of a balanced market. This ratio has been declining in our market since March when it was 19 per cent.” Balance is a good place for the market to be, but buyers do have the balance tipped in their favour at this point.

Further, Klein stated, “Overall conditions have trended in favour of buyers in our marketplace in recent months…this means buyers are facing less competition and have more selection to choose from compared to earlier in the year.”

Speaking of selection, in June new listings for detached, attached and apartment properties in Metro Vancouver totalled 5,617. On the brighter side of things, this represents a 3% downshift when comparing to last year’s total of 5,793 properties listed for sale on the MLS® . Again looking back to early spring this was an 18.9% decline compared to the 6,927 new listings reported in May, 2012.

When evaluating the over all market, the total number of residential property listings on the MLS® jumped 22% year over year, with 18,493 properties available for sale. The MLS Link® Housing Price Index (HPI) composite benchmark price for all residential properties in Metro Vancouver over the last year edged up 1.7% and declined 0.7% compared to the previous month. The benchmark price is not always a great indicator to follow because high-end detached homes with big numbers can easily wash out price differences in small condos so please be cautious when evaluating these numbers as they can be skewed by one sector or another.

Sales of detached properties in June, 2012 for Metro Vancouver:

– 921 units – ↓37.4% compared to 1,139 sales in June, 2011.

The benchmark price ↑ 3.3% from the year before to $961,600.

Sales of apartment/condo properties in June, 2012 for Metro Vancouver:

-1,026 units – ↓ 19% compared to 1,266 sales in June, 2011.

The benchmark price of an apartment property ↑ 0.3% from the year before to $376,200.

 

Sales of attached property/town homes in June, 2012 for Metro Vancouver:

-415 units – ↓ 21% compared to 525 sales in June, 2011.

The benchmark price of an attached property ↑ 0.1% from the year before to $468,400.

Source: Real Estate Board of Greater Vancouver News Release July 4, 2012
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