According to recent analysis, the Metro Vancouver real estate market is beginning to balance out. Although housing prices are almost 9 percent higher than a year ago, the ratio between sales and listings is beginning to even out.
According to the Vancouver real estate board, the 22 percent sales to listing ratio is proof that things are starting to reach a more balanced level. Though the market continues to favour sellers, it is less so than it was a mere few months ago. The market currently does favour sellers, but only very slightly.
More research shows that the month of June actually saw fewer sales than a typical June. This is further evidence that the region is beginning to finally see a more balanced sales to listings level. There is basically a better and more harmonious balance between supply and demand and this will in all likelihood exert some pressure on keeping prices in check.
Over the last few months the market has been particularly heated with sales to listings ratios at between 26-29 percent. Last month the ratio dropped to twenty-four percent, meaning that twenty-four percent of houses listed were selling. This ratio is now down to twenty-two percent, giving the buyers a new advantage as sellers seek out purchasers for their homes.
The Fraser Valley saw 1,588 homes sold from the 9,758 June listings. This sixteen percent ratio has been fairly constant this year and as such reflects a balanced market in this area.
The market is therefore stabilizing say real estate experts and this is a good thing. A slight decline in sales from the huge rise in the beginning of the year seems to have occurred. The high selling prices and heated market may have encouraged more people to put their homes on the market and this then led to more listings and thus supply.
Increased supply means that listing are growing faster than purchases. This is obviously a better situation for those wishing to buy.
So while this year has actually seen an increase of almost ten percent in sales as compared to 2010, the month of June saw a decrease of 3.4 % in comparison to May of this year.
The price of an average homes for sale in Vancouver area is still much higher than ever. In Metro Vancouver the typical property cost 8.7 percent more than in 2010. Thus in June of 2011 the average dwelling cost 630,921 dollars compared to 580,237 the year before. this translates to just over 100,000 dollars more over the course of one year.
West Vancouver and the West side of Vancouver have seen prices rise most dramatically. The benchmark cost of a detached home in the west side of Vancouver rose 147,000 dollars since the end of May and in West Vancouver over 80,000 dollars.
Sales of detached homes thus increased almost thirty percent from those in June 2010 and more strikingly, the price of a detached property increased a whopping 13.4 percent. The benchmark price is therefore hovering around 900,000 dollars for a detached home.
Richmond leveled off with prices declining slightly in June. Prices in the area have come down about 25,000 dollars over the course of the month.
The benchmark cost of a detached property is now 2,080,000 dollars on the west side of Vancouver and 1,793,000 in West Vancouver proper.
Vancouver island shows that the average price of a detached property here has come down slightly from the previous year. The average price in June 2010 was 345,269.00
as compared to last month’s 343,422.00.
In Victoria likewise there has been a slight decline in the average price from 649,280.00 in June 2010 to 629,292.00 in June 2011. In this area however sales are actually increasing, wit 618 homes sold in June as compared to May of this year which saw 572 sales in the area.
So while experts agree that there has been some rebalancing occurring in Metro Vancouver, the prices have yet to come down all that dramatically. Though the market has seen more sellers keen to reap the rewards of the high prices, thereby actually giving buyers some advantage over their previous state, the average cost of a stand alone home is still well above the previous years.
Nevertheless, for those seeking to buy a home, this slight advantage should not be ignored. Whether or not this trend will continue is difficult to say, but at least buyers are not feeling the same squeeze they were just a few months ago.