Little summer lull this year with sales activity 33.5 per cent above 10-year average and prices up 11.2 per cent over last July, says board
Joannah Connolly
Other
July’s hot weather did not deter home buyers in Greater Vancouver this year, with real estate sales up 30 per cent annually and prices up 11.2 per cent, according to Real Estate Board of Greater Vancouver (REBGV) figures released August 5.
MLS home sales totalled 3,978 in July 2015, compared with the 3,061 sales per cent seen in July 2014. Although high for July, this figure is a month-over-month drop of 9.1 per cent compared with June’s stratospheric figures, so there was some element of a summer decline.
However, last month’s sales were 33.5 per cent above the 10-year sales average for the month, even higher than previous months.
Darcy McLeod, REBGV president, said, “Much of today’s activity can be traced to strong consumer confidence, low interest rates and a reduced supply of homes for sale.”
Resale home prices continued to beat previous records, with the benchmark price of a Greater Vancouver home breaching the $700,000 mark for the first time at $700,500. This is an 11.2 per cent increase compared with July 2014.
Sales and Listings
Greater Vancouver home sales rose 30 per cent to 3,978 units in July, compared with the 3,061 sales of July 2015. This is a drop of 9.1 per cent compared with the 4,375 sales in June 2015, which was the second highest month of activity on record.
Broken down by housing type, detached home sales reached 1,559 units in July, an increase of 17.9 per cent from the 1,322 detached sales recorded in July 2014 but a month-over-month drop of nearly 19 per cent, reflecting the limited supply of detached homes.
Apartment sales again saw the biggest annual rise, reaching 1,729 in July 2015, a rise of 42.7 per cent compared with the 1,212 sales in July 2014.
Sales of townhouses and other attached properties totalled 690, a year-over-year increase of 30.9 per cent versus the 527 sales in July 2014 and the only property type to see a month-over-month gain in activity.
“Although there aren’t as many homes for sale today compared to recent years, home buyers continue to have a range of housing options, at different price points, to choose from across Metro Vancouver,” McLeod said. “The diversity of housing options is part of what’s driving today’s demand.”
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What’s Up, What’s Down – At a Glance |
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Jul/Jun 15 |
Jul 15/14 |
|
Overall Sales |
-9.1% |
+30.0% |
|
– Detached |
-18.8% |
+17.9% |
|
– Attached |
+1.3% |
+30.9% |
|
– Apartment |
-2.5% |
+42.7% |
|
New Listings |
-11.9% |
+3.8% |
|
Current Listings |
-5.5% |
-26.3% |
New listings for detached, attached and apartment properties in Metro Vancouver totalled 5,112 in July. This is a 3.8 per cent increase compared with the 4,925 new listings reported in July 2014 but an 11.9 per cent drop compared with June.
However, inventory remained extremely limited, with the total number of properties currently listed for sale on the region’s MLS at 11,505, a 26.3 per cent decline compared with July 2014 and a 5.5 per cent decline compared to June 2015.
With the sales-to-active-listings ratio currently at 34.6 per cent, Greater Vancouver remains firmly a sellers’ market, said the board.
“We have about 5,000 to 6,000 fewer homes for sale today than we’ve seen at this time of year over the last five to six years,” said McLeod. “Today’s activity continues to benefit sellers as home buyers compete for the homes available for sale.”
Benchmark Prices (MLS Home Price Index)
The benchmark price for combined MLS residential property types in Metro Vancouver continued to set its monthly new record, now standing at $700,500. This represents an 11.2 per cent increase compared with July 2014.
The benchmark price for a detached property in Metro Vancouver increased 16.2 per cent from July 2014 to $1,141,800, the highest price growth rate of all the property types.
Townhome and other attached unit prices increased 7.8 per cent between July 2014 and 2015 to $511,500.
The benchmark price of an apartment property continued to increase at a much more modest annual rate, this month rising 5.9 per cent compared with July 2014 to $400,900.
The composite benchmark prices by housing type are:
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Greater Vancouver MLS® Benchmark Prices % Change |
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Jul 2015 |
Jul/Jun 15 |
Jul 15/14 |
|
Detached |
$1,141,800 |
+1.6% |
+16.2% |
|
Townhome |
$511,500 |
+0.9% |
+7.8% |
|
Apartment |
$400,900 |
+0.2% |
+5.9% |
Home prices vary widely throughout the REBGV region. To get a good idea of home prices in a specific location, check the detailed MLS Home Price Index in the REBGV full statistics package.
© 2015 Real Estate Weekly