Greater Vancouver’s housing market trended towards red-hot record levels seen in 2016 last month, driven by continued demand for condos and townhomes.

A total of 4,364 homes sold in the region in May, down 8.5% from the all-time record number of sales seen in May 2016 but up nearly 23% from April 2017’s sales total, says the latest data from the Real Estate Board of Greater Vancouver (REBGV).

Coming in as the third-highest selling May on record, last month’s sales were 23.7% above the 10-year May sales average.

However, 2016’s market was fueled by the region’s detached home segment but this year condos and townhomes are leading sales activity.

“First-time buyers and people looking to downsize from their single-family homes are both competing for these two types of housing,” says Jill Oudil, REBGV president, in a press release.

In May, a total of 2,025 apartments sold, representing a 5.8% decrease compared to the same period last year. The benchmark price was $571,300, close to an 18% year-over-year increase and a 3% hike compared to April 2017.

Meanwhile, 791 attached properties sold in the region last month, up roughly 5% compared to May 2016. The benchmark price for attached homes was $715,400, soaring 13% over the same period last year and a 1.9% uptick compared to the prior month.

Metro Vancouver had a total of 6,044 new listings for detached, attached and apartment properties last month, a 3.9% decrease compared to May of last year and a 23% increase from April 2017.

Detached homes led the month-over-month increase in new listings at 27.1%, followed by apartments and townhomes at 22.7% and 14%, respectively.

“Home buyers are beginning to have more selection to choose from in the detached market, but the number of condominiums for sale continues to decline,” says Oudil.

When observing the sales-to-active listings ratio broken down into property types, the ratio for townhomes and condominiums suggest significant upward pressure on prices.

In May, the ratio for condos was 94.6%, followed by 76% for townhomes and 31% for detached properties. In total, the ratio for all residential properties was 53.4%.

Typically, downward pressure occurs on home prices when the ratio falls below 12% for a sustained period of time, says REBGV. Conversely, upward pressure on prices happens when the ratio surpasses 20% over several months.

With less activity when compared to the apartment sector, detached home sales totaled 1,548 last month, a 17% drop from May 2016. The benchmark price was $1,561,000, up 3% year-over-year and 2.9% from April 2017.

The benchmark price for all residential properties in the region last month saw an almost 9% year-over-year increase to $967,500 and a 2.8% increase compared to April 2017.

REBGV : Greater Vancouver Condo & Townhome Sales Build Momentum in May by Kerrisa Wilson | Buzz Buzz Home