Ray Harris | President, REBGV
"Activity this summer has been strong but not unsual for the Metro Vancouver housing market. Last month home sales and listing totals were both near the 10 year August average.
There were 2,771 sales in August. This is up 10% compared to last year. Yet it sits in the middle of the pack when we look at August sales over the last ten years. In terms of listings there were just under 4,000 homes listed for sale in August. That's 8.4% below the ten year August average. All total there are 14,768 homes for sale in Greater Vancouver today.
To help us better understand the strength of today's market, we measure home buyer demand fueled by home sales against home seller supply fueled by the number of home listings. This measurement today gives us a sales-to-active-listing ratio of 18.8%.
Our market has been between 18% and 21% for the last seven months. This range is indicative of balanced housing market conditions. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark. While home prices generally experience upward pressure when it reaches the 20-22% range in a particular community for a sustained period of time.
Home prices in the region continue to experience modest incremental gains. Since beginning of 2013 the benchmark price for residential properties in Metro Vancouver has gradually increased 7.4%.
We now turn to this month's theREALTOR®view segment. TheREALTOR'S®view highlights a specific insight where trend in the housing market. This month we're looking at seasonal supply. Each year fluctuations in the number of homes listed for sale follow similar seasonal pattern.
Listings generally begin to increase for the first few months of the year. Reach a peak in the summer months and typically decline to a low point in Decemeber. As you can see here this is a pattern that repeats itself year in and out. How high home listings rise in the summer months or how low they go in the winter depends on the state of the market at the time. But the general trend of home listings activity almost always follows a seasonal pattern.
It's important to take seasonal factors into account before embarking on your home buying and selling process. To learn more about what kinds of inventory are available in your area of choice contact a local REALTOR®.