Metro Vancouver’s housing market is moving towards a balanced market! After what seemed like endless months of slower sales, September 2019 saw home sales starting to pick up speed again thanks to increased demand from buyers. As the home sale activity begins to reach its typical levels for this time of year, the housing market looks to be getting more comfortable for both buyers and sellers.
According to the Real Estate Board of Greater Vancouver (REBGV), last month’s sales were only 1.7% below the 10-year September sales average.
Vancouver Reaches a Balanced Market
There are 13,439 homes currently listed on the Multiple Listing Service® (MLS®) system in Metro Vancouver, a 0.3% increase compared to August 2019, and a 2.7% increase compared to September 2018.
The sales-to-active listings ratio for September 2019 for all property types is 17.4%. By property type, that’s 12.7% for detached homes, 18.9% for townhomes, and 21.9% for apartments.
Most analysts describe downward pressure as the result of the sales-to-active listings ratio dropping below 12% for a sustained period which in turn, lowers prices. Upward pressure then happens when the ratio consistently surpasses 20% for several months and results in increased home prices.
“We’re seeing more balanced housing market conditions over the last three months compared to what we saw at this time last year,” says Ashley Smith, REBGV president. “Home buyers are more willing to make offers today, particularly in the townhome and apartment markets.”
A Comfortable Market for Both Sides
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $990,600. The composite benchmark price has decreased by 7.3% compared to September 2018 but only shows a 0.3% decrease compared to August 2019.
There were 745 sales of detached homes in September 2019, a 46.7% increase compared to September 2018. This number represents an 8.6% decrease from September 2018 and is virtually unchanged compared to August 2019.
Apartment home sales in September 2019 reached 1,166, representing a 43.6% increase compared to September 2018. This increase in sales can likely be attributed to the new benchmark price of an apartment property, currently $651,500. This price represents a 6.5% decrease from September 2018, and a 0.4% decrease compared to August 2019.
Attached home sales in September 2019 saw a 53.5% increase compared to last year, with 422 homes sold compared to 275 sales in September 2018. Like apartment sales, this is likely due to the new benchmark price of an attached unit, currently $767,500. This price is a 7.2% decrease from September 2018, and a 0.6% decrease compared to August 2019.
Metro Vancouver’s housing market is anything but boring. If you feel overwhelmed by the constant changes, Stilhavn’s team of expert REALTORS® can help you navigate the industry. Your dream home awaits!