After six months of stricter mortgage regulations and higher interest rates, housing demand in Metro Vancouver continued to decline in June, while supply levels soared.
Last month, a total of 2,425 homes changed hands in the region, plunging roughly 38 per cent from the 3,893 sales recorded in June 2017, according to the latest data from the Real Estate Board of Greater Vancouver (REBGV), published Wednesday.
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While June’s sales total was nearly 29 per cent below the 10-year sales average for the month, the supply of homes for sale reached a three-year high.
“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” says REBGV president Phil Moore, in a statement.
“Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today,” he adds.
Here are 9 more stats that explain where Metro Vancouver’s housing market stands halfway through the year.
1. There were a total of 11,947 homes listed for sale in June, up 40 per cent from 8,515 homes listed a year ago.
2. There were 5,279 detached, attached and apartment properties newly listed for sale last month — a roughly 8 per cent drop compared to the 5,721 homes listed a year ago.
3. REBGV says June’s listing total is the highest it has been since June 2015. “With reduced demand, detached homes are entering a buyers’ market and price growth in our townhome and apartment markets is showing signs of decelerating,” says Moore.
4. For all property types, the sales-to-active listings ratio for June was 20 per cent. REBGV says downward pressure on home prices typically occurs when the ratio dips below the 12 per cent mark over several months, while prices experience upward pressure when it surpasses 20 per cent for a sustained period.
5. By property type, the sales-to-active listings ratio was roughly 12 per cent for detached homes, 25 per cent for townhomes and 33 per cent for condos.
6. The benchmark price of a home in Metro Vancouver hit $1,093,600 in June — a 9.5 per cent increase from a year ago.
7. In the detached segment, a total of 766 detached homes sold last month, dropping 42 per cent from the 1,320 homes recorded in June 2017. The benchmark price of a detached home was $1,598,200 in June, up 0.7 per cent from the same period last year.
8. A total of 1,240 condos sold in the region — a 35 per cent drop compared to 1,905 condo sales in June 2017. The benchmark price of a condo hit $704,200 in June, up 17 per cent from a year ago.
9. In the attached segment, a total of 419 homes sold in June, down 37 per cent compared to the 668 sales in June 2017. Last month, the benchmark price of an attached home was $859,800 — a 15 per cent increase from a year ago.