Detached home prices on rise
Fewer listings means ‘greater competition among buyers’
Although the benchmark price of a single-family home in Greater Vancouver continued to increase in January to $1,010,000, the big news was the drop in the number of detached homes for sale, according to Ray Harris, president of the Real Estate Board of Greater Vancouver.
Harris said the monthly statistics released Tuesday showed the number of detached homes listed for sale dropped 11.4 per cent while the total number of sales were up almost nine per cent.
“Detached listings are at a fouryear low while demand remains steady,” Harris said. “We’re seeing fewer homes for sale. This is creating greater competition among buyers.”
The REBGV includes an area from Vancouver to Maple Ridge and from south Delta to Whistler and the Sunshine Coast.
Total sales hit 1,913 last month, an 8.7 per cent increase compared to last January, but a 9.6 per cent decline compared to December.
January’s sales were 14.9 per cent above the 10-year sales average for the month.
New listings for detached, attached and apartment properties in Metro Vancouver were 4,737 in January, down 11.4 per cent compared to January 2014.
Harris said he thinks the lower number of listings is due to homeowners deciding to hold onto their homes and keep them off the market.
“Effectively, we’re seeing people staying in their homes longer,” he said.
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $641,600, a 5.5 per cent increase compared to January 2014.
During that same period, the benchmark price for a detached property increased 8.4 per cent to $1,010,000, while the benchmark price of an attached unit increased 4.3 per cent to $479,600.
December 2014 was the first time the year-end benchmark price surpassed $1 million.
Harris said prices staying above the $1 million benchmark is a sign of the continuing steady and slow growth in the market. He said that has been the case despite a shortage of listings, which usually would lead to more dramatic growth in prices.
“It was a matter of time until we reached the million-dollar threshold,” he said.
The Fraser Valley Real Estate Board said that their sales increased 10 per cent in January compared to January 2014 and were down 21 per cent compared to December.
FVREB president Ray Werger said January is a slower month as buyers recover from the holidays and everyone starts preparing for the busy spring season that starts as early as February.
“It was a little busier than last January but still, in a way, it’s a typical January,” he said.
The benchmark price of a single family detached home in the Fraser Valley in January reached $571,700, an increase of 3.5 per cent compared to January 2014. During that same period, townhouses decreased 1.3 per cent to $293,800 and apartments dropped 1.5 per cent to $189,500.
“Money is cheap to borrow so that has given us a little boost,” he said, referring to the recent cut in interest rates.
The FVREB covers north Delta, Surrey, the city and township of Langley, White Rock, Abbotsford and Mission.
“It was a matter of time until we reached the million-dollar threshold.
RAY HARRIS REAL ESTATE BOARD OF GREATER VANCOUVER PRESIDENT