Condos, townhomes driving local real estate market: REBGV
Posted May 2, 2017 9:37 am.
Last Updated May 2, 2017 9:51 am.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – It appears if people can’t get the home they want with the white picket fence, they’re moving into condos and townhomes and that’s what the Real Estate Board of Greater Vancouver says is driving the local market.
It says residential property sales in the region totalled 3,553 last month, a 25.7 per cent drop compared to April 2016 when 4,781 homes sold and a 0.7 per cent decrease from the 3,579 sales recorded in March of this year. April sales were 4.8 per cent above the 10-year average for the month.
For the first four months of the year, condo and townhomes sales have made up a bigger percentage of all residential sales in Metro Vancouver. The board finds they’ve accounted for 68.5 per cent, on average, of all residential sales. That’s up 10 per cent from the 58.2 per cent average over the same period last year.
“Our overall market is operating below the record-setting pace from a year ago and is in line with historical spring levels. It’s a different story in our condominium and townhome markets,” explains Board Presdient Jill Oudil. “Demand has been increasing for months and supply is not keeping pace. This dynamic is causing prices to increase and making multiple offer scenarios the norm.”
Last month, new listings for detached, attached and apartment properties in the region totalled 4,907. That is a decrease of 19.9 per cent compared to the 6,127 units listed in April 2016 and a three per cent increase compared to March 2017 when 4,762 properties were up for sale.
The total number of residential properties on sale in Metro Vancouver is 7,813, a slight bump compared to March 2017 when 7,586 were available. “Until more entry level, or ‘missing middle,’ homes are available for sale in our market, we’ll likely continue to see prices increase,” says Oudil. “There’s been record building this past year, but much of that inventory isn’t ready to hit the market.”
Home prices in the Vancouver area rose in April as the condo market continued to heat up. The Real Estate Board of Greater Vancouver says the average benchmark price for an apartment-style condo rose three per cent over March to $554,000, and was up 16.6 per cent from a year earlier.
The industry group says condo prices rose 8.2 per cent over the last three months, while single-detached houses were up 2.8 per cent.
The board says the benchmark average price for a single-detached home last month topped $1.5 million, up 1.8 per cent from March.
