Vancouver

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

Vancouver detached real estate hits an all-time high, despite sales declining almost twice as fast as inventory.

Vancouver Detached Real Estate Hits An All-Time High For 2017... Again

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.

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.

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.

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8 Comments

  • Reply
    Garfield 3 months ago

    Lovely stock photo of an authentic Vancouver neighbourhood LOL.

    Interestingly Zolo has Vancouver detached sale prices are down 20% y/y…

    • Reply
      Neo 3 months ago

      I was about to say the same thing…average prices have dropped like a stone since July 7th according to Zolo.

  • Reply
    rob 3 months ago

    San Fran – you can see the transamerica building in the background

  • Reply
    Anne 3 months ago

    Please plot dollar volume, i.e., sum of all sales per housing category, on these plots.

    This will let you know what the level of activity is…

    • Reply
      Please 3 months ago

      This is the data that people need to see. Sales to active listings in the single family sector are abysmal.. in July (normally a decent sales month), it was 10% in the west side of vancouver, 9% in west vancouver, 14% on the eastside, 14% in Richmond. Actual closing activity is in the lower price points while the high priced listings have been dying on the vine for over a year. Basically the demand for high priced sf homes in the gvrd is no where near the supply aka that market is dead. Dollar sale volumes prove this in spades. Morale of the story is that a news outlet needs to put a spotlight on this before too many people stampede into overpriced condos at prices that will be more in line with what the sf market will crash to if the sf market keeps going on this trajectory. The data is all there.. Happy to provide an op ed if need be.

  • Reply
    Derek Gagnier 3 months ago

    This is a photo of the iconic “painted ladies”, as they are known, in San Francisco. Not sure how the pic relates to an article on Vancouver real estate…

  • Reply
    Travis Bannert 3 months ago

    This pic makes me want to go back to San Francisco. The article is good at informing me just to visit Vancouver. 😉

  • Reply
    Vancouver Detached Real Estate Hits An All-Time High In 2017… Again | Better Dwelling | BC Vancouver Real Estate News 2 weeks ago

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