“Today’s activity continues to benefit sellers as home buyers compete for the homes available for sale,” Darcy McLeod, REBGV president, said in a release. "Much of today’s activity can be traced to strong consumer confidence, low interest rates, and a reduced supply of homes for sale.
“We have about 5,000 to 6,000 fewer homes for sale today than we've seen at this time of year over the last five to six years."
In fact, according to the release, sales were 33.5 per cent above the 10-year sales average for the month, while new listings for detached, attached and apartment properties in Metro Vancouver totalled 5,112 in July. This represents a 3.8 per cent increase compared to the 4,925 new listings reported in July 2014.
The number of properties on the MLS has declined by 26.3 per cent, compared to this time last year.
With low interest rates and the plummeting dollar drawing international investors to Vancouver, Victoria and elsewhere in B.C., sellers are seeing it as the perfect time to cash out and/or buy an affordable property.
Tony Joe, a real estate agent with Re/Max Camosun, said that he’s had clients looking to add to their portfolios with homes in Victoria and Fairfield where the cap rates are 4.2 per cent compared to just 2.5 per cent in Vancouver.
The average price for a home in Metro Vancouver is $700,500, up 11.2 per cent compared to this time last year. For a detached home, the average price increased 16.2 per cent over the same period to $1,141,800.
Sales of detached properties in July 2015 reached 1,559, an increase of 17.9 per cent from the 1,322 detached sales recorded in July 2014, and a 24.8 per cent increase from the 1,249 units sold in July 2013.
The real estate board believes that a diversity of housing options continue to drive demand in the buyers’ market, but remains a sellers’ market nonetheless.
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Investors who purchased homes over the last five years are starting to sell up in what’s being called a sellers’ market, according to the latest stats from the Real Estate Board of Greater Vancouver.