The Vancouver real estate market is on fire, showing robust signs of recovery and growth despite higher mortgage costs. According to the Real Estate Board of Greater Vancouver (REBGV), residential home sales in July soared by nearly 30%, reaching 2,455 units, a significant increase from the same month last year. Moreover, prices across the board witnessed an uptick, as the market continues to rebound from previous challenges.
Rising Home Prices:
The composite benchmark price of a home in Vancouver rose by 0.6% compared to June, reaching just over $1.2 million. This reflects a slight increase from the same time last year, showing steady appreciation in property values.
Detached homes saw a remarkable rise in sales, with 681 units sold and a benchmark price of $2,012,900, representing a 28.7% YoY increase. The demand for detached properties remains strong, contributing to the overall surge in sales.
Record Sales Performance:
The significant increase in home sales, totaling 2,455 units, indicates a robust demand from eager buyers looking to invest in the Vancouver housing market. However, it’s important to note that the current sales level still remains 15.6% below the ten-year seasonal average, suggesting potential for further growth.
Influx of New Supply:
The Vancouver market is witnessing a consistent influx of new supply. July 2022 saw 3,975 new listings, and last month that number jumped to 4,649, providing more options for prospective buyers. While the total number of homes currently listed for sale decreased by 4% compared to July 2022, the increase in new listings suggests a healthy market activity.
Recovery Amidst Higher Mortgage Costs:
Despite higher mortgage costs, the Vancouver real estate market continues to rebound. Andrew Lis, REBGV’s director of economics and data analytics, attributes the strong year-over-year gains in part to the depressed market activity experienced last July. The Bank of Canada’s “super-sized” increase to the policy rate of one full percentage point in July last year caught both buyers and sellers off guard, leading to a slowdown in market activity. The current surge in sales is, in part, a rebound from last year’s subdued conditions.
The Vancouver real estate market is showing remarkable resilience and growth. With rising home prices, record sales, and an influx of new supply, it’s an exciting time for both buyers and sellers.