May 2015 Market Summary was just released by the Real Estate Board of Greater Vancouver reports "It continues to be a competitive Spring market for metro Vancouver home buyers.
There were 4,056 sales in May. This is up 23% compared to last year and nearly 17% for the Ten Year Average for the month.
This is the third consecutive month sales have passed the four thousand mark. This is only the second time in the Board history that this has occurred.
On the home listing side there were 5, 641 listed for sale last month. That is down 5% from last year and down 7.8% compared to the Ten Year Average for May.
The total number of homes listed for sale today remains below for what is typical this time of year. All total there are 12, 336 homes for sale on the MLS in metro Vancouver today. This is down more than 23% compared to last May.
Looking at home prices the Benchmark Price for all residential properties in the region is $684,400. That's up 9.4% over the last twelve months. Detached Homes continue to be the most sought after property. The Benchmark Price of a Detached Home increased 14.1% over the last twelve months while Townhomes and Condominiums have increased 6.4% and 4.6% respectively.
To help better understand the strength of today's market the following we measured home buyer demand fueled by home sales against home seller supply fueled by the number of home listings. This measurement today gives us a sales to active listing ratio of 32.9%.
Generally analyst say downward pressure on home prices occurs when the ratio dips below the 12% mark. Home prices often experience upward pressure when it reaches the 20 to 22% range in a particular community for a sustained period of time.
A closer look at the diversity of options available for home buyers shows while the number of homes listed for sale is down compared to recent years home buyers continue to have a wide selection of housing options to choose from in metro Vancouver. This is part of what is driving home sales today contrary to some of the headlines we see today the majority of home sales in metro Vancouver are not a million dollars and beyond. In fact nearly 70% of the sales in the regions MLS last year were below $800,000. For example, the price of a condominium today will roughly range from $200,000 and $600,000 depending on the size and the location. Detached homes in Vancouver are at the high end of our market. Recent activity has pushed homes on the West Side of Vancouver above $2,500,000. It's a different story in the neighboring communities. Detached homes in Maple Ridge often sell in the $500,000, in Ladner the price is around $700,000 and in Coquitlam homes typically sell in the $800,000 range.
There is no question that our region faces affordability challenges. It is just there are more options and layers to the story than is typically conveyed and as a potential home buyer, seller or home owner, it is important to understand all aspects of this important conversation."
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