For the first time in 3 years, the Metro Vancouver housing market is experiencing a significant increase in home buyer demand as monthly home sales surpassed the 3,000 mark this past May. A key indicator of this strong market is typically gauged by analyzing the Sales to Active Listings Ratio which provides an overall picture of the available homes on the market and how many of those homes have sold.

The Real Estate Board of Greater Vancouver (REBGV) reported a 14 per cent increase in the Multiple Service Listing Service in May 2014, compared to this time last year.  The Sales to Active Listings Ratio is currently sitting at 21.3 per cent. Although 18-22 per cent indicates a balanced market, there are areas already showing a seller’s market, which simply means there is more demand than the number of home listings available for sale.

For example, homes listed in Yaletown in the month of May were only on the market for an average of 36 days and achieved close to 96% of the original list price. According to the REBGV, this is the most active marketplace they’ve seen since the spring of 2011.

A strong market typically means that home buyers must make a faster purchasing decision once they find a home they want. Naturally, listings sell more quickly when there are more people looking for homes than there are homes available. The benchmark price for a home in Metro Vancouver is at $628,200 as of June 2014, which is a 4.4 per cent increase, compared to June 2013. The average price of homes is expected to continue to trend upwards in a conservative fashion.

In the current market, it pays to be ready to make an offer as soon as you find the home that meets your needs. Preparation is key — spend some time prioritizing what it is you are looking for in a home, be open minded and explore the offerings in a wide range of neighbourhoods and get yourself pre-approved for a mortgage.