Vancouver condo market heats up while detached home sales cool

Vancouver’s housing sales have divided into two separate markets with condominiums being snatched up and detached homes remaining on the market longer.

Figures released Wednesday by the Real Estate Board of Greater Vancouver showed an 11.5 per cent drop in the market last month compared with the over-heated market in June last year.

However, the real estate board says last month’s sales were still 14.5 per cent above the 10-year sales average for the month of June.

The ratio of sales to listings for June by property type is 24.5 per cent for detached homes, 62 per cent for townhomes and 93.2 per cent for condominiums.

The real estate board says analysts expect downward pressure on home prices when that ratio dips below 12 per cent and say there is upward pressure when the figure goes over 20 per cent for several months.

“Home buyers have more selection to choose from in the detached market today while condominium listings are near an all-time low” on the Multiple Listing Service, board president Jill Oudil said in a news release.

She said two distinct markets have emerged this summer.

“The detached home market has seen demand ease back to more typical levels while competition for condominiums is creating multiple-offer scenarios and putting upward pressure on prices for that property type.”

The MLS composite benchmark price for all residential property types in Metro Vancouver was $998,700 — a 7.9 per cent increase from a year ago and up 1.8 per cent compared with May 2017.