In the last month, Richmond BC was the only place where property prices dropped in the greater Vancouver area. It’s clear that the Vancouver real estate market has undeniably become an invincible powerhouse, consistently shattering expectations and making a mockery of any attempts to slow its momentum.
It’s evident that the market is operating on an insatiable hunger for property that simply won’t be silenced, even in the face of restricted supply, causing median home prices to reach unprecedented heights in June 2023. The Vancouver Real Estate Board’s data is a testament to this unstoppable force.
An astounding 2,988 homes changed hands in June 2023, an impressive 21.1% leap from the previous year, admittedly falling slightly short of the decade-long seasonal average. This indicates a trajectory of relentless growth and clearly attests to the Vancouver real estate market’s extraordinary resilience.
The superstar of the Vancouver property market’s overachievement, in my opinion, is undoubtedly the apartment sector. With their sales volumes eclipsing the decade-long average, and their prices nearing last year’s record highs, apartments are on fire. This exceptional performance represents a significant shift in buyer preferences.
Richmond BC is the lone ranger bucking this trend, witnessing a marginal 0.6% dip in property values. Meanwhile, the Sunshine Coast is leading the charge with a substantial 4.1% hike. I saw in the data that there are 9,990 active listings.
The new additions in June consisted of a diverse mix of 5,348 detached, semi-detached, and apartment properties, marking a marginal 1.3% increase from June 2022. But it remains slightly below the seasonal average, which I believe signals untapped growth potential.
Fiercer competition among buyers
With active listings tallying at 9,990, down 7.9% from last year, the situation is critical. This stark decline is a red flag indicating a possible further escalation in prices due to fiercer competition among buyers. In June 2023, the sales-to-active listings ratio was a substantial 31.4% across all properties, with detached homes, townhomes, and apartments accounting for 20.9%, 38.5%, and 39.4% respectively.
This is a clear harbinger of an imminent price explosion, provided the ratio stays above 20%. The MLS Home Price Index Considering the MLS Home Price Index, it is undeniable that the skyrocketing home prices result from an intense tug-of-war between relentless buyer interest and a lack of available resale homes.
The resulting friction is fuelling the monthly price surges, despite the sting of rising borrowing costs.
Richmond BC Only Place Prices Dropped
Observing the average prices of all residential properties in Vancouver, I found a minor dip from last year but a slight uptick from the previous month, standing firm at $1,203,000.
This is a sign of continued price hikes on the horizon. There’s no denying that the sales numbers are on an uphill climb, with detached homes witnessing a staggering 28.3% surge in sales from last year, apartment homes registering an 18.6% increase, and attached homes enjoying a 17.6% boost.
Even amidst minor year-on-year price volatility, a steady monthly growth is visible across all property types. This, I am convinced, sets the stage for an unavoidable price surge in the near future.