July has traditionally been a quieter month for home sales, but after a slow start to spring and summer, the latest report from the Real Estate Board of Greater Vancouver (REBGV) shows the market is starting to heat up again.
In June, we saw Metro Vancouver’s home sale and listing activity began to return to more historically normal levels, and this trend continued into July. Last month’s home buyer and seller activity exceeded historical standards, with a sharp increase in homes sold in July 2020.
“We’re seeing the results today of pent-up activity, from both home buyers and sellers, that had been accumulating in our market throughout the year,” noted Colette Gerber, REBGV Chair. “Low interest rates and limited overall supply are also increasing competition across our market.”
July 2020 saw 3,128 residential home sales in the region. This number represents a 22.3% increase from July 2019 and a 28% increase from June 2020.
Last month’s sales are 9.4% above the 10-year July sales average, continuing the positive upward trend we’ve seen for the past few months.
July’s Housing Market at a Glance
There were 5,948 homes newly listed on the Multiple Listing Service® (MLS®) system in Metro Vancouver in July 2020. This number shows a 28.9% increase compared to July 2019, and a 2.8% increase compared to June 2020.
There are now 12,083 homes listed on Metro Vancouver’s MLS® system, a 15.1% decrease compared to July 2019, and a 5.8% increase compared to June 2020.
The sales-to-active-listings ratio for all property types for July 2020 is 25.9%. By property type, that ratio is 25.1% for detached homes, 31.1% for townhomes, and 24.7% for apartments.
Generally, analysts say home prices dip when the ratio falls below 12% for a sustained period. Home prices often rise when the sales-to-active-listings ratio goes above 20% over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,031,400. This price has been relatively steady for the past few months and represents a 4.5% increase over July 2019 and a 0.6% increase compared to June 2020.
Sales by Property Type
There were 1,121 sales of detached homes in July 2020, a 33.3% increase compared to last year. The current benchmark price for a detached house is $1,477,800. This price represents a 5% increase from July 2019 and a 0.9% increase compared to June 2020.
July 2020 saw 607 sales of attached homes, for a 28.3% increase compared to July 2019. The benchmark price of an attached home is now $797,700. This price represents a 3.7% increase from last year and a 0.9% decrease compared to June 2020.
Finally, there were 1,400 sales of apartment homes in July 2020, a 12.6% increase compared to July 2019. The benchmark price of an apartment is now $682,500 — a 4.2% increase compared to July 2019 and a 0.3% increase compared to June 2020.
Ready for a change?
Metro Vancouver’s housing market is proving to be quite resilient, and it looks like the promising summer market we predicted pre-COVID might still come to pass.
If you’ve got questions about buying or selling your home, get in touch today!