Greater Vancouver realtors are bracing for another potential record-breaking year for residential property transactions, as the latest Multiple Listing Services show sales in February rising 11.1 per cent over the same month a year ago.

A total of 3,066 detached houses, townhouses and condominiums sold last month, compared to 2,760 units in February 2003.

Year-to-date, 5,029 properties have sold, up 6.2 per cent from 4,734 sales during the first two months of last year.

“There is no doubt that we are still experiencing a strong market,” said Bill Binnie, president of the Real Estate Board of Greater Vancouver.

With the region’s sizzling housing market continuing to be driven by rising demand amid dwindling inventory, combined with interest rates as low as 4.4 per cent on a fixed five-year term, the current level of activity suggests 2004 sales could easily exceed last year’s record 37,901 homes sold.

“Sales activity is higher than normal for this time of year,” Binnie said Tuesday. “Consumer confidence remains strong, and we continue to see first-time buyers and investors stepping into the market.”

Binnie noted the recent move by Canada Mortgage and Housing Corp. to relax the rules regarding the minimum five-per-cent down payments will further motivate young first-time purchasers.

In February — as has been the case virtually every month for the last couple of years — condos continued to be the hot ticket with 1,263 units sold, up 19 per cent from 1,061 sales the previous year.

The year-over-year average condo price in Greater Vancouver rose 16 per cent to $235,900 last month, as the number of available units kept shrinking, with active listings dropping 22 per cent to 2,488 units, compared to 3,214 units in February 2003.

Vancouver‘s west side, which includes the downtown area, continued to boast the region’s hottest condo market, with 436 units sold, up from 410 units. The west side’s average condo price rose 22 per cent to $336,500.

Among townhomes, 534 units sold on the MLS last month in Greater Vancouver, compared to 406 units the previous year, an increase of 31.5 per cent. February’s average townhouse price of $300,200 was 16.3-per-cent higher than $258,100 a year ago.

Sales of detached properties totalled 1,269 units last month, dipping 1.9 per cent from 1,293 units in February 2003. However, the average year-over-year detached price climbed 16 per cent to $504,400, as active listings fell 21 per cent to 3,543 units from 4,519 units.

Over all, there were 7,049 active residential listings in Greater Vancouver as at the end of February, a 20-per-cent drop from 8,820 units a year ago. North Vancouver was one of the few areas where detached sales climbed last month, with 118 houses sold, up 9.3 per cent from 108 units the previous year.

February’s hot spots for townhouse sales included Coquitlam, Maple Ridge, Richmond, and both the Vancouver east and west side.

In addition to the city’s west side and downtown, condo markets were also brisk last month in Coquitlam, Port Coquitlam, North Vancouver and New Westminster.

In the six Fraser Valley communities, February MLS sales in the three main housing categories totalled 1,634 units, a 28-per-cent increase over 1,277 homes the previous year.

Detached homes in the valley sold at an average price of $324,800, up 10.7 per cent from $293,300 in February 2003. The townhouse average was $213,800, up 11.7 per cent from $191,400, while the condo average was $125,700, up 5.6 per cent from $119,000.

“The real estate market in the Fraser Valley is not slowing down,” said Delta realtor Moss Moloney, newly elected president of the Fraser Valley Real Estate Board. “There’s little doubt we are looking at another strong year.”

As of March 1, Canadian home buyers are allowed to obtain up to 100-per-cent financing to purchase a property, since CMHC has dropped its previous condition that required people to come up with a minimum down payment of five per cent from their own resources, rather than borrowed funds.

© The Vancouver Sun 2004