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Metro Vancouver condo market drives big price increase in May as sales sink

Last Updated Jun 4, 2018 at 10:06 am PDT

(iStock Photo)
Summary

Vancouver's market saw double-digit gains driven by the condo market in May

VANCOUVER (NEWS 1130) – Tougher mortgage qualification rules did not stop Vancouver-area home prices from heating up in May, posting double-digit gains driven by the condo market. The Real Estate Board of Greater Vancouver says sales fell 35.1 per cent from a year earlier to 2,833.

Although they were 19.3 per cent lower than the 10-year May average, sales were up 9.8 per cent from April. Listings rose, too, increasing by 9.5 per cent.

Read more: Property assessments show biggest gains in condo market

“For home sellers to be successful in today’s market, it’s important to price your property competitively given the shifting dynamics we’re experiencing,” Board president Phil Moore explains. “It’s also important to work with your local Realtor to better understand these changing conditions.”

Prices were sharply higher. The industry group’s composite benchmark price for apartment-style condos jumped 20.2 per cent from a year earlier to $701,700. Prices for single-detached houses were up much less, 2.4 per cent, to an average of $1.6 million. Sales of detached properties were down 40.2 per cent from the previous May. The sales-to-listings ratio for the category was 14.7 per cent, which the board says is less than three points above the level where “downward pressure on home prices occurs.” For condos the ratio is 41.7, more than double the level for upward price pressure.

Read more: Condos, townhomes in high demand in Metro Vancouver, real estate board says

For all types of properties combined, the benchmark price was up 11.5 per cent to $1.09 million.

“The selection of homes for sale in Metro Vancouver has risen to the highest levels we’ve seen in the last two years, yet supply is still below our long-term historical averages,” Moore adds.