Photo: Kenny Louie/Flickr
A total of 4,400 homes were sold in Metro Vancouver last month, and while that’s down 7.7 per cent from May, the Real Estate Board of Greater Vancouver (REBGV) says it’s a new record for the month of June.
Sales were up 0.6 per cent from June 2015, when 4,375 homes were sold, and came in 28.1 per cent above the 10-year sales average for the region for the month. Home prices also saw a big increase last month — the MLS Home Price Index composite benchmark price for Metro Vancouver homes is currently sitting at $917,800, up 32.1 per cent from a year ago.
According to Dan Morrison, president of the REBGV, the home sales and price increases seen in June can be attributed to a continued imbalance in supply and demand — in other words, there are simply more buyers looking for homes than there are sellers.
That point is illustrated most clearly by the sales-to-active-listings ratio data laid out by the REBGV. Last month, the ratio, which is calculated by dividing sales by active listings, came in at 56.3 per cent. While that’s the lowest it’s been since February, it’s still “clearly indicative of a seller’s market” and well above the range of 20 to 22 per cent when home prices begin to experience upward pressure.
The fact that fewer homes are currently for sale on the MLS system also helps show how great housing demand is in Metro Vancouver. Just 7,812 homes are currently on the market, down 35.9 per cent from June 2015. That decline has come even as homes have consistently hit the market over the last few months — indeed, in that time more homes have been listed for sale “than in any other four-month period this decade,” per Morrison.
Despite overall increases in Metro Vancouver home sales and prices last month, stats vary between home types. For instance, apartment sales rose 18.8 per cent from June 2015, while attached property sales rose a more modest 7.2 per cent; meanwhile, detached property sales dropped 18.6 per cent.
In contrast, prices for all home types rose in June. The benchmark price for a detached property rose 38.7 per cent from the same period in 2015 to reach $1,561,500, and the benchmark price for an attached property hit $656,900, an increase of 28.1 per cent. The benchmark price for an apartment was $501,100, up 25.3 per cent from the same period a year ago.