Without a doubt, the past summer has been one to remember. Metro Vancouver not only experienced some of the hottest summer temperatures on record but also broke real estate records with the most active market in the last decade. Major news headlines such as “Summer Heat Doesn’t Slow Home Buyer Activity” and “Metro Vancouver Home Sales Set Record Pace in June” were just some of the many that grabbed our collective attention.
Between June and August, home sales soared 25%–34% higher than the ten-year sales average, specifically with July experiencing one of the most active markets in recent history. To elaborate, July saw tremendous sales activity: 33.5% above the 10-year sales average with a 34.6% sales to active listings ratio (a >20% ratio is considered a seller’s market). With these record breaking numbers, July’s sales volumes were the highest since May 2009 and the fourth highest since 1988. This trend stayed relatively consistent for the duration of the summer months. With a low number of listings compared to demand, the ratio stayed north of 30% creating an extremely busy seller’s market and putting pressure on prices. According to the Greater Vancouver Real Estate Board (GVREB), average composite (detached, attached, townhomes) benchmark home prices have risen from $694,000 to $708,500 in the summer months (June to August). To provide further context, when analyzing year-over-year summer market trends between June to August, summer 2015 reported strong indicators showing Metro Vancouver’s imbalance of supply and demand.
June to August Average Year-Over-Year Percent Change:
- Total Listings: -25.5% ▼
- Total Sales: +26.6% ▲
- Benchmark Price: +12.2% ▲
There is no denying that the Fall weather is returning, however, it doesn’t look like our housing market is ready to lose its summer heat just yet. With the 3-month summer trend of diminishing home listings and continued strong sales activity, it looks as though the latter half of 2015 won’t be cooling off anytime soon.
Note: REBGV data includes sales in Metro Vancouver area but excludes the Fraser Valley Region (Surrey, Langley, Abbotsford, Chilliwack, and Hope).
