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.
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.
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.