The media calls it a “real estate frenzy”. But others call it a robust real estate market. This comes after the BC Real Estate Association just reported that BC home sales posted the strongest April in ten years. This April's home sales were 29.3 per cent above the 10-year sales average for the month. Does this mean we’re in a sellers’ market? It does, but what exactly is a sellers’ market?

\"Strong home buyer demand coupled with below average home listing activity has created seller's market conditions within the Metro Vancouver housing market.\" — REBGV Monthly Statistical Report April 2015

What creates a sellers’ market? What is it that leads to increased prices? How do we get to a stage where sellers receive multiple offers? Any number of variables can create this “frenzy”. Factors include a low unemployment rate, low interest rates and high demand with a lack of supply. In late February however, all of these variables came together at once. And just when sellers thought it couldn’t get any stronger, the devalued Canadian dollar attracted more foreign buyers looking to make Vancouver home. All of these forces coming together at once created the perfect storm.

The factors above create consumer confidence within any given geographical area that people want to live. As a result, realtors are hard at work looking for homes for buyers in that market. This leads to a spike in overall demand and a decrease in supply which leads to multiple offer scenarios and upward pressure on housing prices.

As long as interest rates, unemployment and the Canadian dollar remain low, we can expect a strong sellers’ market in Greater Vancouver which could lead us well into the Fall.