The Real Estate Board of Greater Vancouver has reported a significant increase in home prices and residential sales in June. The limited inventory of homes available for sale in the region has fueled high demand from buyers, resulting in a 1.3% rise in the benchmark price of all home types in Vancouver’s real estate market. Vancouver’s real estate market witnessed a notable surge in home prices during June, attributed to robust buyer demand and a shortage of available properties. The benchmark price for all types of homes in Metro Vancouver reached $1.203 million, marking a 1.3% increase compared to the previous month. Andrew Lis, Director of Economics and Data Analytics at the real estate board, emphasizes the insufficient resale inventory relative to the pool of buyers as the primary driver behind the ongoing price escalation across all housing segments.
The apartment segment stands out as the strongest performer, surpassing the region’s 10-year seasonal sales average. In June, 1,573 apartment homes were sold, reflecting an 18.6% increase compared to the previous year. The benchmark price for apartments rose to $767,000, registering a 0.5% annual increase and a 0.8% monthly increase. Andrew Lis highlights the need for policy adjustments to support first-time homebuyers in affording apartments, urging the provincial government to revise the Property Transfer Tax exemption threshold of $525,000 to align with the current entry-level home prices in the region.
In addition to the strong performance in the apartment segment, both detached and attached homes saw increased sales activity in June compared to the previous year. The benchmark price for detached homes reached $1.991 million, indicating sustained demand and price growth. Attached homes experienced a benchmark price of $1.099 million, slightly lower than last year but 1.5% higher than May 2023. The increase in sales across all housing types contributed to a sales-to-active listings ratio of 31.4% in June, with apartments leading at 39.4% and townhomes and detached homes following.
According to the Real Estate Board of Greater Vancouver, a sustained sales-to-active listings ratio below 12% typically exerts downward pressure on home prices, while ratios exceeding 20% over several months tend to drive prices upward. The current ratio of 31.4% suggests continued upward pressure on prices in the near term. With elevated borrowing costs, the market remains resilient due to strong buyer demand. To alleviate affordability challenges for first-time homebuyers, the board emphasizes the need for policy adjustments, particularly increasing the Property Due to high buyer demand and a lack of available properties, Vancouver’s real estate market saw an increase in home prices in June. The apartment segment demonstrated exceptional strength, surpassing sales averages, while detached and attached homes also saw increased sales activity. The ongoing price escalation highlights the need for policy adjustments to enhance affordability and support first-time homebuyers, ensuring a balanced and sustainable housing market in the region.