Home values in the Lower Mainland steadily rose in June as listings dwindled and demand surged.
According to data from the Real Estate Board of Greater Vancouver (REBGV), the sales-to-active listings ratio last month was 20.9% for detached homes, 38.5% for townhouses, and 39.4% for condominiums. The board said that historical data suggests downward pressure on home prices occur when the ratios dip below 12%.
Despite elevated borrowing costs, there continues to be too little resale inventory available relative to the pool of buyers in Metro Vancouver,” said Andrew Lis, the director of economics and data analytics with REBGV. “This is a fundamental reason we continue to see prices increase month over month across all segments.”
Total sales jumped 21.1% in June 2023 compared to the same month last year.
According to the MLS Home Price Index, residential properties have jumped in value 8.5% to $1,144,400 in the last six months. Detached homes have seen the largest gain since the beginning of the year at 9.9%, while townhouses are up 8.5% and condos are up 8.1%.
However, Lis said apartment values have been particularly robust and called on the provincial government to adjust the $525,000 threshold for exempting first-time home buyers from the property transfer tax “to better reflect the price of entry-level homes in our region.”
The benchmark price of apartment homes ($767,000) is almost cresting the peak reached in 2022, while sales of apartments are now above the region’s ten-year seasonal average. This uniquely positions the apartment segment relative to the attached and detached segments where sales remained below the ten-year seasonal averages.”
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