Competitive market for detached homes

In it's recently released monthly Market Update the Real Estate Board of Greater Vancouver conveyed 'The first month of 2015 saw home sales activity above historical norms.  While the number of homes listed for sale trended below typical levels.  There were 1,913 sales in January.  This is up 8.7% compared to last year.  It was the highest selling January in our region since January 2010.  It’s nearly 15% above the January 10 year average.In terms of listings there were 4,737 homes listed for sale in Metro Vancouver in January.  That’s 11.4% decline from last year.  All total there were 10,811 homes for sale on the MLS in Greater Vancouver today.  This is down 14.2% compared to January 2014.  January 2015 was among the lowest totals in the last four years.

To help us better understand the strength of today’s market we measure home buyer demand (1,913) fueled by home sales against home seller supply fueled by the number of homes listed (10,811).  This measurement today gives us Sales-To-Active Listings Ratio of 17.7%.  

Generally analyst say downward pressure on home prices occurs when the ratio dips below the 12% mark.  While home prices often experience often experience upward pressure when it reaches the 20-22% range in a particular community for a sustained period of time.

The Benchmark Price for all residential properties in Greater Vancouver rose 5.5% over the last 12 months to $641,600.  Detached homes continue to be the most after property type in our market.  The Benchmark Price for a single family home increased 8.4% over the last 12 months while townhomes and condominiums have increased 4.3% and 2.5% respectively.

'In the January 2015 Housing Market Update is a 'Realtor View segment.  The Realtor’s view highlights a specific insider trend of the housing market.  This month was looking at reduced supply specifically in the detached home market.  

Each year fluctuations in the number of homes listed for sale follows a similar seasonal pattern.  December and January are traditionally low points of the year for the number of listings on the market and that’s the case this year.  What’s different is the number of detached homes for sale in the last two months is the lowest we’ve seen at any point in the last 4 years.  This coupled with the steady and consistent demand for home buyers has created a competitive market for detached homes. 

The Metro Vancouver market like any other follows a supply (listings) and demand curve.  When supply is reduced demand is strengthened.  It is this dynamic that is putting upward pressure on detached home prices and causing multiple offer situations.'

Watch the video below...