The benchmark Metro Vancouver home price inched up nearly 0.5% to an all-time high of $641,600 during the month of January, the Real Estate Board of Greater Vancouver (REBGV) reported February 3.
Compared with the previous January, the benchmark home price rose 5.5%, the REBGV noted.
Detached homes led the surge with the benchmark price for those properties rising 8.4% year over year to $1.01 million. In contrast, the benchmark price for apartment units increased 2.5% year over year to $382,800 while the price for attached homes increased 4.3% year over year to $479,600.
“The Bank of Canada’s recent announcement to lower its benchmark interest rate is an important one for home buyers, sellers and owners to note,” said REBGV president Ray Harris.
“A reduced rate could allow you to pay down your mortgage a little faster, save some money on your monthly payments or change the amount you qualify for.”
Harris noted that, while demand remains steady, there are comparatively few homes for sale. That’s heightening competition among buyers, particularly for detached homes.
“The number of detached homes listed for sale today is the second lowest we’ve seen in four years,” he said.
New listings for detached, attached and apartment properties in Metro Vancouver totalled 4,737 in January – an 11.4% decline compared to the 5,345 new listings reported in January 2014.
The sales-to-active-listings ratio has dipped a bit from a few months ago. The ratio, which indicates the strength of the market, now sits at 17.7%, indicating a balanced market. The ratio was 19.7% in September.
A balanced market exists when the ratio is between 13% and about 21%, Harris told BIV last year.
Conventional real estate wisdom is that a market is considered to be a buyers’ market when the sales-to-active-listings ratio is below 13%. It is considered a sellers’ market when the ratio is above 21% for at least a few months, he added
Finally, sales remain strong.
Last month’s sales were 14.9% above the 10-year sales average for the month.
The 1,913 sales on the Multiple Listing Service (MLS) in January 2015 represent an 8.7% increase compared to the 1,760 sales recorded in January 2014 and a 9.6% decline compared to the 2,116 sales in December 2014.
