Vancouver Detached Real Estate Hits An All-Time High In 2017… Again

Posted by Ricky Dhadwal on Tuesday, August 15th, 2017 at 8:49am.

Vancouver’s detached real estate printed a second all-time for 2017. Numbers from the Real Estate Board of Greater Vancouver (REBGV) show that the typical detached home sold for 10s of thousands of dollars more in July 2017. This occurred despite sales dropping almost twice as fast as inventory.

Detached Prices Increased 2.16%

The price of a detached home in Vancouver moved higher, once again. The benchmark price, which is the price of a “typical” home is now at $1,612,400, a 1.54% increase from the month before. This jump makes up the majority of the annual increase, with prices up 2.16% from the same time last year. Detached home prices are now growing around the target rate of the Consumer Price Index (CPI). If this were a steady annual rate, it would be a totally sustainable market. However, prices jumping over $24,000 in a month probably means buyers are still overly optimistic on higher prices.

Vancouver Detached Prices (Benchmark)
MonthDetached Prices
December 2015 1,248,600
January 2016 1,273,100
February 2016 1,305,600
March 2016 1,342,500
April 2016 1,403,200
May 2016 1,513,800
June 2016 1,561,500
July 2016 1,578,300
August 2016 1,577,300
September 2016 1,567,500
October 2016 1,545,800
November 2016 1,511,100
December 2016 1,483,500
January 2017 1,474,800
February 2017 1,474,200
March 2017 1,489,400
April 2017 1,516,500
May 2017 1,561,000
June 2017 1,587,900
July 2017 1,612,400
 

Source: REBGV.

Detached Sales Fell Over 13%

The number of detached sales in Vancouver continues to fall. There were 936 sales, a 28.66% decrease from the month before. This also represents a 13.09% decline from the same month last year. The monthly drop is somewhat seasonal, but the total number of sales in 2017 lower than last year.

Vancouver Detached Sales Vs. Listings
MonthSalesListings
December 2015 1,136 830
January 2016 1,047 1,929
February 2016 1,778 2,811
March 2016 2,135 2,931
April 2016 1,979 2,883
May 2016 1,865 2,915
June 2016 1,920 2,618
July 2016 1,077 2,386
August 2016 715 1,814
September 2016 666 2,147
October 2016 652 1,596
November 2016 638 1,205
December 2016 541 513
January 2017 444 1,915
February 2017 741 1,430
March 2017 1,150 1,924
April 2017 1,204 2,091
May 2017 1,548 2,657
June 2017 1,312 2,647
July 2017 936 2,201
 

Source: REBGV.

Detached Listings Fell Over 7%

The number of detached listings also dropped, helping to “balance” the sales to listings ratio. July 2017 saw 2,201 listings, a 16.85% decline from the month before. This represented a 7.75% decline from the same month last year. Listings dropped at half the rate of sales, which means higher inventory levels (and theoretically less pressure on prices).

Last year, the sales to listings ratio was a little higher and resulted in declining prices August. Now with the sales to listings ratio a little lower, it’ll be interesting to see if detached buyers send prices lower, or continue buying without any consultation of market fundamentals.

Ricky Dhadwal
604.418.6600

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