The number of sales transactions in September 2019 was 46.3% higher than in September 2018, and continued to trend upwards on a month-to-month basis. Meanwhile the Home Price Index showed a flattening of prices, which could possibly indicate the market is near, or at, the bottom of the recent price correction in Greater Vancouver.
Analysts say that home prices will experience upward pressure when the sales-to-active listings ratio surpasses 20% over several months, and will have downward pressure when the sales-to-active listings ratio dips below 12% for a sustained period. The most recent sales-to-active listing ratios for September were: 12.7% for detached homes, 18.9% for townhomes, and 21.9% for apartments thereby indicating a more balanced market for all types of homes.
BUYERS’ BEST BETS – Top Buyers’ Markets last month were detached houses in Tsawwassen (5% sales-to-active listings ratio or 5 in 100 homes selling rate), West Vancouver (7%), Richmond and Vancouver Westside (9%).
SELLERS’ BEST BETS – Top Sellers’ Markets last month were condos/townhomes in Pitt Meadows (41%), Port Moody (35%) and Port Coquitlam (32%).
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Increased Demand Helps Housing Market Reach Balanced Territory
VANCOUVER, BC – October 2, 2019 – Home buyer demand has returned to more historically typical levels in Metro Vancouver over the last three months.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,333 in September 2019, a 46.3 per cent increase from the 1,595 sales recorded in September 2018, and a 4.6 per cent increase from the 2,231 homes sold in August 2019.
Last month’s sales were 1.7 per cent below the 10-year September sales average.
“We’re seeing more balanced housing market conditions over the last three months compared to what we saw at this time last year,” Ashley Smith, REBGV president said. “Home buyers are more willing to make offers today, particularly in the townhome and apartment markets.”
There were 4,866 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2019. This represents a 7.8 per cent decrease compared to the 5,279 homes listed in September 2018 and a 29.9 per cent increase compared to August 2019 when 3,747 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 13,439, a 2.7 per cent increase compared to September 2018 (13,084) and a 0.3 per cent increase compared to August 2019 (13,396).
For all property types, the sales-to-active listings ratio for September 2019 is 17.4 per cent. By property type, the ratio is 12.7 per cent for detached homes, 18.9 per cent for townhomes, and 21.9 per cent for apartments.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“This is a more comfortable market for people on both sides of a real estate transaction,” said Smith. “Home sale and listing activity were both at typical levels for our region in September.”
The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is currently $990,600. This represents a 7.3 per cent decrease over September 2018 and a 0.3 per cent decrease compared to August 2019.
Sales of detached homes in September 2019 reached 745, a 46.7 per cent increase from the 508 detached sales recorded in September 2018. The benchmark price for a detached home is $1,406,200. This represents an 8.6 per cent decrease from September 2018 and is virtually unchanged compared to August 2019.
Sales of apartment homes reached 1,166 in September 2019, a 43.6 per cent increase compared to the 812 sales in September 2018. The benchmark price of an apartment property is $651,500. This represents a 6.5 per cent decrease from September 2018 and a 0.4 per cent decrease compared to August 2019.
Attached home sales in September 2019 totalled 422, a 53.5 per cent increase compared to the 275 sales in September 2018. The benchmark price of an attached home is $767,500. This represents a 7.2 per cent decrease from September 2018 and a 0.6 per cent decrease compared to August 2019.