After the tumultuous events that legislation produced on the real estate market in the Greater Vancouver area this past year, the housing market is beginning to see a surge in the right directions. This past May, seller confidence is on the rise as sales and listings increased 23% over April. This is only 8.5% behind May of 2016 and is almost 24% higher than the ten year average for the month.
A Change of Story
The surge in the market is beginning to offer home buyers with a great selection of houses to choose from when purchasing although the demand for condos and townhomes is still lagging. Jill Oudil, president of REBGV (Real Estate Board of Greater Vancouver has said “It is a different story in our condominium and townhome markets. Demand has been increasing for months and supply is not keeping pace. This dynamic is causing prices to rise and making multiple offer scenarios the norm.”
Demand and the Sellers Market
This demand is driving the condo and townhome market and today’s activity. Although the market is still a strong seller’s market, May sales to active listings ratio have put the market acutely in the hands of the sellers. A balanced market is between 12-20% and this past May the ratio was at 53.4% across all property types.
The condo market is still the hottest commodity with a sale to the active listing ratio of an astounding 94.6%. If you are a condominium owner who is thinking about taking the plunge and putting your condo on the market, now is the opportune time to take advantage of the demand issues and sale to active listing rate.
Detached Home Options
Buyers activity is rebounding according to REBGV and the inventory for detached home sales is giving those buyers the selection they need to find the perfect home. “Home buyers are beginning to have more selection to choose from in the detached market, but the number of condominiums for sale continues to decline,” Oudil said.
The benchmark price for all residential properties in the Greater Vancouver area is up 8.8% from last May and tops the scale at approximately $967.500 with benchmark prices for detached homes coming in at around $1,561,000 respectively.
Each month that passes is steadying the property market and giving both buyers and sellers more headway in getting exactly what they are looking for. The confidence for sellers is finally growing as market properties buyers are feeling they have more selection on the marketplace.