The Vancouver real estate market saw an increase in demand, pushing July (a typically quieter time of the year) to the second highest selling month so far in 2019.
There has been a substantive increase in residential home sales in the region as per The Real Estate Board of Greater Vancouver (REBGV). The market saw a 23.5 %, increase compared to the 2,070 sales record in July 2018, and a 23.1 % increase compared to the 2,077 homes sold in June 2019.
The sales for last month capped at 7.8%, which was below the usual July sales average.
"While home sale activity remains below long-term averages, we saw an increase in sales in July compared to the less active spring we experienced," Ashley Smith, REBGV president said. "Those looking to buy today continue to benefit from low interest rates, increased selection, and reduced prices compared to the heated market a few years ago."
In July, 2019, a total of 4,613 detached, attached and apartment properties were uploaded for sale on the Multiple Listing Service® (MLS®) in Metro Vanouver. There was a 3.3% decrease, when compared to the 4,770 homes that were listed in July 2018 and a 2.9% reduction compared to June 2019 when 4,751 homes were listed.
A total of 14,240 homes are currently listed on the MLS®, which is a 17.3% increase when compared to 12,137 in July 2018 and a decrease of 4.9% compared to 14,968 in June 2019.
The ratio of sales-to-active listings ratio for July 2019 is 18% for all property types. Segmenting them by property type, 13.5 % for detached homes, 22% for apartments, and 20% for townhomes.
According to analysts, downward presseure in home prices are caused when the ratio falls under 12% for a stable period, while an upward pressure is usually caused when the ration goes above 20% over several months.
"To better understand conditions in your property type or neighbourhood of choice, it’s important to work with your local REALTOR®. They can help you develop a strategy to reach your long-term real estate goals," Smith said.
The benchmark price according to the MLS® Home Price Index is currently set at $995,200. This represents a 9.4 % reduction over July 2018 and a 0.3 % reduction compared to June 2019.
There was a 32% increase in the sales of detached houses as it reached 841 in July 2019, when compared to 637 detached sales recorded in July 2018. The benchmark price for detached properties is $1,417,000, which represents a 10.5% decrease from July 2018, and a 0.5 % reduction compared to June 2019.
The market saw an increase of 15.2% in apartment homes, which reached 1,243 in July 2019, compared to 1,079 sales in July 2018. The benchmark price was at $653,200. This represents an 8.8 % decrease from July 2018, and a 0.2 % decrease compared to June 2019.
Attached home sales in July 2019 totalled 473, a 33.6 % increase compared to the 354 sales in July 2018. The benchmark price of an attached unit is $770,000. This represents a nine % decrease from July 2018, and a 0.6 % decrease compared to June 2019.