Like a runaway freight train, the residential real estate market in Greater Vancouver – the strongest in the country – continues to accelerate and shows no signs of stopping, according to Canadian Real Estate Association data released Feb. 16.
In January, the region saw a total of $2.8 billion in home sales, which is up 73 per cent compared with $1.6 billion in January 2015. As well, the average sales price jumped 31 per cent to $1.08 million from $828,000 last year.
“Benchmark price growth topped 20 per cent year-over-year in the month for the first time since at least 2006, which detached homes still leading,” said BMO Capital Markets’ Robert Kavcic.
“That said, condo prices continued to accelerate to a 15.9 per cent year-over-year clip, and we continue to believe that, while supply fundamentals might warrant strong gains in the detached segment, such constraints aren’t nearly as acute in the condo space.”
The number of units sold in Greater Vancouver was 2,574, which is up 32 per cent compared with 1,948 units in the same month last year.
“Vancouver’s market is drum tight, with an almost unheard of 91 per cent sales-to-new listings ratio – in other words, almost every new listing is getting absorbed within the month as record sales meet average growth in new listings,” Kavcic said.
Some of the real estate growth in January may have been related to homebuyers pushing their purchasing decisions forward to beat the new tighter mortgage rules that took effect Feb. 15, CREA president Pauline Aunger pointed out.
Aunger also said sales in Toronto and Vancouver would likely have been even higher if the supply existed.
“Meanwhile, other major urban housing markets have an ample supply of listings, particularly where some home buyers have become increasingly cautious amid an uncertain job market outlook,” she said.
Across Canada, the benchmark price increased 17 per cent to $470,000, but this was entirely due to increases in BC and Ontario. Excluding these provinces, the benchmark home price actually fell 0.3 per cent. The biggest price drop was in Edmonton, where the benchmark price fell 8 per cent to $339,000.
All data, unless otherwise indicated, is not seasonally adjusted. The CREA compiles its figures from select MLS systems across Canada, including the British Columbia Real Estate Association.
