Demand for housing exceeds supply in Metro Vancouver as prices creep higher

“Home sales activity continues to exceed what is typical for this time of year, and the pool of homes available for sale is in decline.”

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Demand for housing in Metro Vancouver continues to surpass supply, which has fallen to a low point in three years, the region’s real estate council said.

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The Real Estate Board of Greater Vancouver reported 3,494 home sales in October, about 22 percent higher than the month’s 10-year historical average.

“Home sales activity continues to exceed what is typical for this time of year, and the pool of homes for sale is in decline,” board economist Keith Stewart said in a statement Tuesday. “This dynamic between supply and demand is causing house prices to continue to rise throughout the region.”

Metro Vancouver remains firmly in the seller’s market area, but many homeowners appear to be uninterested in putting their homes up for sale.

Just over 4,000 houses, condominiums and townhouses were put up for sale in October, a decrease of 27 percent from last year.

Stewart said rising fixed mortgage rates should help ease demand, but expects sales to remain strong so far as buyers with mortgage rates look for property for the rest of the year.

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The sales-to-active advertising ratio for October is 43.5 percent for all property types, the board said. For detached houses, the ratio is 33.6 per cent. for terraced houses 64.4 per cent. and for apartments 46.7 per cent.

In general, analysts say that upward pressure on house prices occurs when the ratio stays above 20 percent over several months.

Housing prices for the region rose one percent compared to last month.

The benchmark price for all types of housing in Metro Vancouver is currently at $ 1,199,400, with detached houses experiencing the largest increase from year to year.

The biggest gains in house values ​​were in Maple Ridge (33 percent), Whistler (32 percent) and Pitt Meadows (30 percent).

The benchmark price for a detached house in the region is $ 1,850,500, 20 percent higher than the same period last year.

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For townhouses, the benchmark price is $ 975,000, an increase of 18 percent, while the reference price of condominiums is $ 746,400, an increase of nine percent.

The Greater Vancouver Real Estate Agency covers Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver and Whistler.

It’s a similar situation for the Fraser Valley Real Estate Board, which reports above-average sales for October – when 1,938 properties changed hands – and below-average ads that put upward pressure on house prices.

“It’s a very challenging time, especially for buyers,” said board chairman Larry Anderson. “I have empathy with customers who have been trying to buy a house for more than a year without success after several attempts.”

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The board, which represents real estate agents in Abbotsford, Langley, Mission, North Delta, Surrey and White Rock, said there were 2,188 properties built in October, 29 percent fewer than last year.

Overall, the active stock is 3,447, almost half of last year’s figures.

The benchmark price for a detached house in the area is $ 1,396,700, representing a 33 percent increase over last year. Townhouses and condominiums also increased in value by 27 percent and 18 percent, respectively.

chchan@postmedia.com

twitter.com/cherylchan


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