Business in Vancouver

Vancouver home sales hit third consecutive monthly decline

Average June home price rises 3.2 per cent compared with May

PUBLISHED : Wednesday, 06 July, 2016, 2:48am
UPDATED : Wednesday, 06 July, 2016, 1:07pm

Vancouver’s hot real estate market showed some signs of abating in June, when homeowners sold a total of 4,400 residential properties.

That’s the third consecutive month of declining sales and is about 15 per cent fewer than the 5,173 sales that transacted in March.

Prices, however, continue to rise.

The benchmark Metro Vancouver home now costs C$917,800 (US$705,250), which is 32.1 per cent more than June 2015 and is 3.2 per cent higher than in May.

“While we're starting to see more properties coming onto the market in recent months, the imbalance between supply and demand continues to influence market conditions,” said Dan Morrison, president of the Real Estate Board of Greater Vancouver (REBGV).

New listings for detached, attached and apartment properties in Metro Vancouver totalled 5,875 in June 2016. That is up 1.2 per cent compared to the 5,803 units listed in June 2015 but down 6.6 per cent compared to May 2016 when 6,289 properties were listed.

“Since March, we’ve seen more homes listed for sale in our market than in any other four-month period this decade,” Morrison said.

The sales-to-active listings ratio for June 2016 is 56.3 per cent.

Conventional real estate wisdom is that a market is considered to be a buyer's market when the sales-to-active-listings ratio is below 13 per cent. A balanced market exists when the ratio is between 13 per cent and about 21 per cent.

It is then considered a seller's market when the ratio is above 21 per cent for at least a few months, REBGV officials say.

While the current 56.3 per cent sales-to-active listings ratio is deep into being a seller’s market, this is the lowest this measure has been since February.

The falling sales-to-active listings ratio in part reflects a slowing in the decline of total properties available to buy.
The total number of properties currently listed for sale on the multiple listing service in Metro Vancouver is 7,812. That is 35.9 per cent less than in June 2015 yet only 1.1 per cent less than a month ago.

The steepest declines in sales volume in June were far and away in detached homes, where 1,562 homes sold. That is an 18.6 per cent decrease compared with the 1,920 detached homes that sold in June 2015.

In contrast, the 2,108 apartment sales in June were 18.8 per cent more than the same month a year ago. Attached properties, such as duplexes, also saw increased sales. A total of 730 attached homes sold in June, or 7.2 per cent more than the 681 sales in the same month a year ago.

As for prices, the benchmark detached home now costs C$1,561,500 (US$1,200,024), which is up 38.7 per cent compared with a year ago. The benchmark apartment now costs C$501,100 (US$385,114), or 25.3 per cent more than a year ago. And, the benchmark attached property now costs C$656,900 (US$504,852), or 28.1 per cent more than a year ago.