VANCOUVER, BC – November 2, 2017 – Metro Vancouver home sales exceeded typical historical levels in October with the majority concentrated in the townhouse and apartment markets.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 3,022 in October 2017, a 35.3 percent increase from the 2,233 sales recorded in October 2016, and an increase of 7.1 percent compared to September 2017 when 2,821 homes sold.
Last month’s sales were 15 percent above the 10-year October sales average.
“Conditions continue to vary significantly based on property type. The detached home market is well supplied with homes for sale, which is relieving pressure on prices,” Jill Oudil, REBGV president said. “It remains a much different story in the townhouse and apartment markets. Buyers of these properties continue to have limited supply to choose from and are seeing upward pressure on prices.”
There were 4,539 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in October 2017. This represents a 14 percent increase compared to the 3,981 homes listed in October 2016 and a 15.6 percent decrease compared to September 2017 when 5,375 homes were listed.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,137, a 0.1 per cent decrease compared to October 2016 (9,143) and a 3.5 percent decrease compared to September 2017 (9,466).
For all property types, the sales-to-active listings ratio for October 2017 is 33.1 percent. By property type, the ratio is 16.8 percent for detached homes, 44.8 percent for townhomes, and 66 percent for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 percent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 percent over several months.
“The growth in our provincial economy and job market is contributing to today’s demand,” Oudil said. “The federal government’s announcement of plans to tighten mortgage requirements for the seventh time in the last eight years also helped spur activity in the short term. Many buyers are trying to enter the market before the changes are in place.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,042,300. This represents a 12.4 percent increase over October 2016 and a 0.5 percent increase compared to September 2017.
Sales of detached properties in October 2017 reached 940, a 44.2 percent increase from the 652 detached sales recorded in October 2016 and a 34.6 percent decrease from the 1,437 sales in October 2015. The benchmark price for detached properties is $1,609,600. This represents a four percent increase from October 2016 and a 0.5 percent decrease compared to September 2017.
Sales of apartment properties reached 1,532 in October 2017, a 30.1 percent increase compared to the 1,178 sales in October 2016 and a 0.7 percent decrease from the 1,543 sales in October 2015. The benchmark price of an apartment property is $642,000. This represents a 22.7 percent increase from October 2016 and a one percent increase compared to September 2017.
Attached property sales in October 2017 totalled 550, a 36.5 percent increase compared to the 403 sales in October 2016 and a 17.4 percent decrease from the 666 sales in October 2015. The benchmark price of an attached unit is $802,400. This represents a 17.7 percent increase from October 2016 and a two percent increase compared to September 2017.
*Editor’s Note: Areas covered by the Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta.
The real estate industry is a key economic driver in British Columbia. In 2016, 39,943 homes changed ownership in the Board’s area, generating $2.5 billion in economic spin-off activity and an estimated 17,600 jobs. The total dollar value of residential sales transacted through the MLS® system in Greater Vancouver totalled $40 billion in 2016.
The Real Estate Board of Greater Vancouver is an association representing more than 13,500 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.
Source: Real Estate Board of Greater Vancouver