It’s only June, but almost 10 percent fewer family homes will be sold in Vancouver this month than in June of last year. This decrease represents a continuing challenge for would-be buyers and sellers alike. Despite this decline, there are indications that the market may be stabilizing, as active listings and new listings have seen significant increases. Andrew Lis, the Real Estate Board of Greater Vancouver’s director of market analysis, expressed optimism about the current market conditions.
In June, total active listings climbed to 17,561, which was a 23.8 percent increase compared to this time last year. Most significantly, this figure is nearly 44 percent higher than what would be expected for June on the average. Lis emphasized that buyers “are enjoying some of the most favourable conditions seen in years,” suggesting that despite lower sales figures, the market could be on the cusp of recovery.
Variations Across Housing Categories
Sales performance was extremely uneven between housing types. The apartment sector went off a cliff. In fact, sales fell off a cliff, down 16.5 percent YOY and only 1,040 units sold. Conversely, the detached homes category only showed a decline of 5.3 percent with 657 homes sold.
Surprisingly, attached home sales were up just 3.7 percent with 473 units sold in June. The contrast in sales trends illustrates the perplexities of the Vancouver housing market. It points towards the idea that different groups are responding in unique ways to the current economic environment.
Increasing Listings and Price Trends
Compared to last year, it was 10.3 percent more June newly listed properties on the market at a total of 6,315. This figure is 12.7 percent above the 10-year seasonal average for the month. Lis observed that “while home sales catch their breath, inventory isn’t growing as fast as we might have grown accustomed to seeing.”
The composite benchmark price for a home in Vancouver was $1,173,100 in June. This is our third price drop, as the national average has fallen 2.8 percent from one year ago. It represents a small, seasonally adjusted decrease of 0.3 percent from May. Broader market conditions have largely prevented the price from breaking out of the sideways-trending pattern established since early January.
Signs of Positive Momentum
Andrew Lis pointed to the positive new leading indicators out there. He admitted the serious hurdles the city faced since the beginning of this year. He stated, “On a trended basis, signs are emerging that sales activity is rounding the corner after a challenging first half to the year.” He noted that if this momentum keeps going, it won’t be long before we’re seeing year-over-year increases in sales.
