REBGV President Jill Oudil gives an update on the latest housing market statistics and explains how buyers can be successful in today's market.
Jill Oudil | President, REBGV
Demand for condominiums and townhomes continues to drive the Metro Vancouver Market. To better understand what's going on, let's look at four key indicators:
The first is home sales. REALTORS® registered 3,553 sales on MLS in Metro Vancouver last month. This is down over 25% form April last year, and is about 5% above the 10-year April sales average. Condominiums and townhomes are the most sought after property types in today's market. For the first four months of the year, they've accounted for 68% fo all residentail sales. This is up 10% from the same period last year.
The second indicator is home listings that supply the housing market demand. More than 4,900 homes were listed for sale in April. That's up 3% from March and 20% than last April.
The third key indicator is home prices. The benchmark price for all residential homes in Metro Vancouver is $941,000. This is a 2% increase over last month and is up 11% compared to one year ago. Over the last three months, condo prices have seen the largest increase at 8%, followed by townhomes at 5% and detached homes at 2.8%.
To understand the relationship between supply and demand that influences price, we look to our fourth indicator: the sales-to-active-listing ratio. The ratio today is 45% across all property types. This is down about 2% from last month, but is still firmly in seller's market territory.
Downward pressure on home prices can occur when the ratio dips below the 12% mark for a sustained period, while home prices can experience upward pressure when it surpasses 20% over several months. When we look at today's ratio by property type, we clearly see upward pressure in our condominium market.
This brings us to our REALTOR® View segment. This month, we're looking at how home buyers can be successful in today's market. Our overall market is operating below the record-setting pace from a year ago, but strong demand for condos and townhomes is fueling fierce competition amongst home buyers.
To gain a competitive edge, you need to be prepared. This means getting pre-approved for a mortgage so that you understand what you can afford. Having a home inspector ready at a moment''s notice, and finding a REALTOR® who specializes in your neighbourhood of interest. Your REALTOR® will help you understand the additionl costs of both purchasing and owning a home. They'll also help you analyze the most current market trends and help you develop your negotiation strategy. This preparation will increase your chances of getting the result you want in today's active market.
For further housing and market information, go to the "News + Statistics" section of this website (rebgv.org). From the Real Estate Board of Greater Vancouver, I'm Jill Oudill.