The Vancouver region's detached-housing market has turned hot again as the affordability crisis becomes a priority for the new political alliance formed by the BC NDP and Greens.

“Two distinct markets have emerged this summer. The detached home market has seen demand ease back to more typical levels while competition for condominiums is creating multiple offer scenarios and putting upward pressure on prices for that property type,” Jill Oudil, Real Estate Board of Greater Vancouver president said. Home buyers have more selection to choose from in the detached market today while condominium listings are near an all-time low on the MLS®,” Oudil said. “Detached home listings have increased every month this year, while the number of condominiums for sale has decreased each month since February.”

In the review below, Kevin Skipworth, Managing Broker at Dexter Associates Realty, provides unique insight into the market.

With more ups and downs than our provincial government landscape, residential home sales in June saw a decline in Greater Vancouver with total units sold at 3,953 which was down from 4,425 (11 per cent) in May 2017. The first six months of 2017 have shown a 25 per cent decrease in the number of homes sold in Greater Vancouver compared to 2016, while the average price is down 4 per cent compared to the same 6 months in 2016 attributed to lower prices properties selling to a greater degree. The trend of buyers being more focused on the attached market has been quite prominent in 2017 which 33 per cent of overall sales for the first half of the year being detached homes, 17 per cent townhouse and 50 per cent apartments, while in 2016 it was 40 per cent were detached homes, 15 per cent townhouses and 44 per cent apartments. In looking at homes sales over the last 10 years, the average for June is 3,109 putting June 2017 sales at 27 per cent above the 10 year average, and 17 per cent above the 20 year average. Active Listings this month has increased ever so slightly, up 4 per cent compared to May 2017 and up 8 per cent compared to June 2016. New listings in June 2017 in Greater Vancouver were down 3 per cent from June 2016, and flat compared to the 10 year average and up 8 per cent compared to the 20 year average.

Vancouver’s West Side saw the lowest amount of detached homes sales as a percentage of overall sales for the first half of 2017 – at 18 percent, down from 24 per cent in the first 6 months of 2016. Apartments made up 72 per cent in the first half of 2017 compared to 67 per cent in the first half of 2016. While the East Side of Vancouver saw a higher percentage of detached home sales during the first 6 months of 2017 compared to Greater Vancouver. Detached home sales made up 39 per cent of all sales, while townhouses made up 12 per cent and apartments 49 per cent. East Vancouver apartment sales were 238 in June (with only 209 new listings) compared to 212 in May and were the highest by month for all time. Less than 7 per cent of those MLS® apartment sales in East Vancouver involved a presale apartment and less than 2 per cent were an assignment. Similarly on Vancouver’s West Side, less than 2 per cent of MLS® sales were presales and only 2 sales were assignments, suggesting speculation was much less of a factor and that price growth in the apartment market is driven significantly by scarcity of product.

 

Meanwhile according to the Fraser Valley Real Estate Board, while overall market activity slowed slightly in June, apartment sales reached record-breaking levels at 683 transactions for the month. The Fraser Valley Real Estate Board processed 2,571 sales of all property types on its Multiple Listing Service in June, a decrease of 10.2 per cent compared to the 2,864 sales in June of last year, and a 5 per cent decrease compared to the 2,707 sales in May 2017. At 683 sales, apartment transactions represented 27 per cent of all sales activity in the Fraser Valley in June, increasing 13.1 per cent compared to apartment sales in June 2016 and 12.2 per cent compared to May 2017.

 

"We knew that there was a growing appetite for our attached properties, but this month was exceptional,” said Gopal Sahota, Board President. “I think one reason demand has continued to be so strong for our region is that we have such diverse, robust inventory to help buyers find the right home even in a more complex market like this one.”

 

Here’s a summary of the numbers:

Greater Vancouver: Total Units Sold in June 2017 was 3,953 – down from 4,425 (11%) in May 2017, down from 4,502 (12%) in June 2016, down from 4,444 (10%) in June 2015; Active Listings are at 9,198 compared to 8,546 at this time last year; New Listings in June 2017 were down 3% compared to June 2016; Month’s Supply of Total Residential Listings is constant at 2 Month’s Supply (Seller’s Market) and a Sales to Listings Ratio of 67% compared to 74% in June 2016 and 72% in May 2017.

Vancouver Westside Residential: Total Units Sold in June 2017 was 644 – down from 796 (19%) in May 2017, down from 816 (21%) in June 2016, down from 884 (27%) in June 2015; Active Listings are at 1,544 compared to 1,381 at this time last year; New Listings in June 2017 were down 3% compared to June 2016; Month’s Supply of Total Residential Listings is constant at 2 Month’s Supply (Seller’s Market) and a Sales to Listings Ratio of 59% compared to 72% in June 2016 and 74% in May 2017.

Vancouver Eastside Residential: Total Units Sold in June 2017 was 451 – down from 467 (3%) in May 2017, up from 407 (11%) in June 2016, down from 467 (3%) in June 2015; Active Listings are at 1,119 compared to 753 at this time last year; New Listings in June 2017 were up 7% compared to June 2016; Month’s Supply of Total Residential Listings is constant at 2 Month’s Supply (Seller’s Market) and a Sales to Listings Ratio of 71% compared to 69% in June 2016 and 70% in May 2017.

North Vancouver Residential: Total Units Sold in June 2017 was 298 – down from 325 (8%) in May 2017, down from 346 (14%) in June 2016, down from 339 (12%) in June 2015; Active Listings are at 510 compared to 385 at this time last year; New Listings in June 2017 were down 3% compared to June 2016; Month’s Supply of Total Residential Listings is constant at 2 Month’s Supply (Seller’s Market) and a Sales to Listings Ratio of 70% compared to 79% in June 2016 and 64% in May 2017.

West Vancouver Houses: Total Units Sold in June 2017 was 92 – down from 100 (8%) in May 2017, down from 109 (16%) in June 2016, down from 132 (30%) in June 2015; Active Listings are at 578 compared to 488 at this time last year; New Listings in June 2017 were up 5% compared to June 2016; Month’s Supply of Total Residential Listings is constant at 6 Month’s Supply (Seller’s Market in Attached to Buyer’s Market in Detached) and a Sales to Listings Ratio of 40% compared to 50% in June 2016 and 41% in May 2017.

Richmond Residential: Total Units Sold in June 2017 was 503 – down from 563 (11%) in May 2017, down from 637 (21%) in June 2016, down from 546 (8%) in June 2015; Active Listings are at 1,294 compared to 1,299 at this time last year; New Listings in June 2017 were down 1% compared to June 2016; Month’s Supply of Total Residential Listings is up to 3 Month’s Supply (Seller’s Market in Attached and Balanced in Detached) and a Sales to Listings Ratio of 58% compared to 73% in June 2016 and 70% in May 2017.