No signs of strong market slowing down
Bruce Constantineau
Sun
Lower Mainland house sales soared to near-record levels in June, with Greater Vancouver sales reaching the fourth-highest level ever posted on the Multiple Listing Service while Fraser Valley sales had the second strongest month on record, the Greater Vancouver and Fraser Valley real estate boards reported Tuesday.
Greater Vancouver sales rose to 4,333 units in June — a 23.6-per-cent increase over June 2004 — and Fraser Valley sales increased by 38 per cent to 2,517 units. Fraser Valley house sales hit the highest level in more than 14 years and the Greater Vancouver total for June included an all-time monthly high of 708 sales of attached units.
Real Estate Board of Greater Vancouver president Georges Pahud said positive factors that create a strong real estate market remain in place — including consumer confidence, a strong economy, immigration to the region and affordable interest rates.
“The market is strong, it has been strong for a long time and more and more people are coming here to live,” he said.
The benchmark price of a detached Greater Vancouver home has increased by 10.2 per cent in the past year to $533,100, the Greater Vancouver board said. The benchmark price of an apartment condominium rose by 14.1 per cent to $261,800 while the benchmark price of a townhouse increased by 10.6 per cent to $333,000.
Pahud said some properties, especially single-family homes, receive multiple offers now and end up selling for more than the original asking price.
“It’s a healthy situation for sellers, but obviously a concern for buyers,” he said. “They have to make sure they have the right advice and stay within their [pricing] comfort level. Unfortunately, multiple-offer situations make it hard for buyers to do the due diligence they would do in a slower market.”
Fraser Valley board president Jake Siemens said the number of active listings in the board’s region has declined by about 14 per cent in the past year, meaning demand is starting to outstrip supply, so some properties are bound to command higher prices than they would have received a year ago.
“If the demand remains strong and the supply goes down, you’ll see further price increases,” he said in an interview. “Frankly, I’m surprised at the amount of activity we saw in June, which normally does not bring in these kinds of numbers. I have a funny feeling we’re in for record months in July and August as well.”
Siemens noted that one Surrey condominium tower had 283 MLS sales in June but even without those sales, it still would have been the strongest June on record.
“The amount of phone calls and activity going on out there now is absolutely insane and it doesn’t seem to be losing any steam,” he said.
The average price of a detached Fraser Valley home has increased by 12.5 per cent in the past year to $389,300 while the average price of an apartment condominium in the region has increased by 35 per cent to $187,300. Fraser Valley townhouse prices have increased by 1.8 per cent in the past year to an average of $230,000.
JUNE BOOM:
Sales of attached homes in the Real Estate Board of Greater Vancouver region reached a high in June. At the same time, detached home sales reached the second-highest number in 10 years.
Sales in REBGV region, June 2005
Attached: 708
Detached: 1,851
Apartments: 1,774
Total: 4,333 (up 23% from June 2004)
Source: Real Estate Board of Greater Vancouver
© The Vancouver Sun 2005
