Home buyer demand continues to differ based on housing type
Click on the above to read the News Release from the Real Estate Board of Greater Vancouver. Summary below:
- August 2017 home sales were 20% higher than the 10-year August sales average.
- September 2017 home sales were 13% above the 10-year September sales average.
- Sales-to-active listings ratio for August 2017 was 35% for all property types
- Sales-to-active listings ratio for September 2017 was 30% for all property types
- Sales-to-active listings ratio for September 2017:
- 14.6% detached homes (balanced market – slowed upward pressure on price)
- 42.3% for townhomes (seller’s market – upward pressure on price)
- 60.4% for apartments (seller’s market – upward pressure on price)
Buyer demand continues for Townhomes and Apartment condos. We find the demand for single family home is still there, especially for homes that were well priced.
Since it’s rapid increase this January, we are seeing the Sales-to-Active ratios (for all property types) started to decrease after reaching its peak so far this year in May 2017 (see graph below).
The HPI benchmark price for all property types in Greater Vancouver continued to rise, although at a slower rate, since the ratio remained in the seller’s market.
According to First National Financial LP “Market watchers appear to be taking the same “wait-and-see” approach to interest rate hikes as the Bank of Canada” Read full article here. Summary below:
- Economic data that support further interest rate increase:
- Employment numbers show 10th straight month for gains
- Wage growth popped up by 2.2% in September after months of sluggish growth. Hourly average wage reaching $26.36.
- The two key factors that support “wait-and-see” approach:
- July GDP was flat which forecast a slowing for 2nd half of the year
- Household debt remained a concern and a determining factor in future rate increase.
The August GDP numbers will come out at the end of this month and they will help determine if there is a trend.