The real estate market in Metro Vancouver is at all time high with homes that continue to sell at an unprecedented rate.
The sales have been on the uprise with a nearly 18% increase as compared to last year and surprisingly almost more than 35% above the 10-Year May sales average and ranks as the highest-selling May Record.
It’s been observed that home sellers have become more active in recent months such that almost 6,289 new listings have been added to the MLS in May, which is almost 12% higher than last year.
Since the market is vary to strong economic and job growth in metro Vancouver, the benchmark prices for all residential homes have rose by nearly 30% over last year and just under 37% attached homes have seen the largest increase over this period. In terms of Condos and townhouses, sales have increased to about 22% and 25% respectively.
For better understanding of the strength of the Real Estate Market, measurement of the home buyer field by home sales and home seller supply by the number of home listings results in the “sales to active ratio” which amounts to 62% and is extremely reflective of the strong seller’s market.
Many analysts are of the opinion that downward pressure on home prices occur when the ratio dips below the 12% mark and mostly home prices experience an upward pressure when it reaches 12% for a sustained period of time.
Lastly, the reason for the difference in demand in today’s market is due to individuals finding houses at different levels of intensity in different regions.
To explain further, In West Vancouver, the benchmark price of a home is almost 3.4 million which is more than 65% over the last 5 years in addition to the benchmark price of a condo is more than 42% since 2011 while as the market in Maple Ridge is on a low, with the price for condos in the area being on a 1.6% decrease over the last 5 years respectively.
Another pattern that has been identified is across Metro Vancouver wherein the price of town house in North Vancouver has grown to 35% in the last 5 years due to the higher sales to active listing while, as the East Townhomes have grown to 45% in the same period.
As a home buyer or seller, it is extremely important to be aware about the market conditions in the neighborhood to make an informed decision.
Stay tuned for more information!