Just when prospective homebuyers thought they might find some relief in Metro Vancouver’s real estate market, a new report suggests that while the foreign home buyer tax may have cooled the housing market temporarily, people are now starting to rush back in.

"Demand for condominiums and townhomes is driving today’s activity,” Jill Oudil, Real Estate Board of Greater Vancouver president said, “First-time buyers and people looking to downsize from their single-family homes are both competing for these two types of housing. 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.

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

What was flat is now up! We saw the market spike in May with 4,425 homes sold in Greater Vancouver compared to 3,617 sales in April, an increase of 22 per cent. While the townhouse and condo market remains very active, the detached housing market picked up steam in May in most areas. In looking at homes sales over the last 10 years, the average for May is 3,246 putting May 2017 sales at 23 per cent above the 10 year average. So after close to a year of a downward trend, the market has come back to being above the 10 year average. The lack of supply continues to be consistent though even though there has been a slight increase in Active Listings this month. New listings in May 2017 in Greater Vancouver were down 3 per cent from May 2016. While Active Listings increased to 8,816 in May from 8,428 in April, but it is still below what is need to match the demand in the market. The average new listings in May over the last 10 years has been 6,382 with May 2017 down 3 per cent from the 10 year average. 

It certainly wasn’t a benign month in British Columbia with much change afoot. The political landscape saw uncertainty change to greater uncertainty and finally ending the month with what could be called “confusion”. And while political uncertainty usually creates nervousness in a real estate market, that was not the case here in Metro Vancouver. And for that matter in many other areas of British Columbia. There will be much speculation as to what policy changes in all aspects of government may come in the months ahead. How government leadership will play out and if we will see another election before 2021 remain the questions for now. Of course the big question is what changes will be made on housing policies once some form of government gets finalized? Certainly the lack of supply will continue to affect the real estate market. Without a significant increase in homes for sale, pressure continues to be on pricing.

The Fraser Valley saw a much-needed increase to new housing inventory entering the market in May, supporting growing demand for residential properties in the region. Last month marked the highest level of sales for the Fraser Valley since June of last year, and the second-highest level for a May historically. The Fraser Valley Real Estate Board processed 2,707 sales of all property types on its Multiple Listing Service in May, a decrease of 7 per cent compared to the 2,911 sales in May of last year, and a 21.4 per cent increase compared to the 2,230 sales in April 2017. “The further we get into this year’s market, the less 2016 looks like an anomaly in terms of demand and sales activity. If it wasn’t clear before, the Fraser Valley is now a prime, highly sought-after destination for home owners of all types, said Gopal Sahota, Board President.

Here’s a summary of the numbers:

Greater Vancouver: Total Units Sold in May 2017 was 4,425 – up from 3,617 (22%) in April 2017, down from 4,910 (10%) in May 2016, up from 4,264 (4%) in May 2015; Active Listings are at 8,816 compared to 8,431 at this time last year; New Listings in May 2017 were down 5% compared to May 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 72% compared to 76% in May 2016 and 72% in April 2017.

Vancouver Westside Residential: Total Units Sold in May 2017 was 796 – up from 613 (29%) in April 2017, down from 878 (10%) in May 2016, down from 812 (2%) in May 2015; Active Listings are at 1,381 compared to 1,337 at this time last year; New Listings in May 2017 were down 3% compared to May 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 74% compared to 76% in May 2016 and 71% in April 2017.

Vancouver Eastside Residential: Total Units Sold in May 2017 was 467 – up from 355 (32%) in April 2017, up from 447 (4%) in May 2016, up from 446 (4%) in May 2015; Active Listings are at 1,134 compared to 729 at this time last year; New Listings in May 2017 were the same compared to May 2016; Month’s Supply of Total Residential Listings is down to 2 Month’s Supply (Seller’s Market) and a Sales to Listings Ratio of 70% compared to 67% in May 2016 and 60% in April 2017.

North Vancouver Residential: Total Units Sold in May 2017 was 325 – up from 255 (27%) in April 2017, down from 346 (6%) in May 2016, up from 333 (4%) in May 2015; Active Listings are at 502 compared to 383 at this time last year; New Listings in May 2017 were the same compared to May 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 64% compared to 69% in May 2016 and 71% in April 2017.

West Vancouver Houses: Total Units Sold in May 2017 was 100 – flat compared to 100 in April 2017, down from 150 (34%) in May 2016, down from 141 (29%) in May 2015; Active Listings are at 555 compared to 437 at this time last year; New Listings in May 2017 were down 8% compared to May 2016; Month’s Supply of Total Residential Listings is up to 6 Month’s Supply (Balanced Market) and a Sales to Listings Ratio of 41% compared to 56% in May 2016 and 45% in April 2017.

Richmond Residential: Total Units Sold in May 2017 was 563 – up from 510 (10%) in April 2017, down from 634 (11%) in May 2016, up from 547 (3%) in May 2015; Active Listings are at 1,137 compared to 1,298 at this time last year; New Listings in May 2017 were down 15% compared to May 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 67% in May 2016 and 78% in April 2017.