Realtors in Canada’s most expensive city for housing report that market activity returned to near record levels in May, a mere nine months after the province introduced a 15% tax on foreign buyers.

But the Real Estate Board of Greater Vancouver reported Friday that demand has shifted away from detached homes — thought to be the most attractive to foreign buyers — and moved to townhomes and condominiums.

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

Residential property sales in the region were 4,364 in May 2017, a drop of 8.5% from the 4,769 sales in May 2016, which was an all-time record, but an increase of 22.8% compared to April 2017, when 3,553 homes sold.

May sales were 23.7% above the 10-year May sales average and are the third-highest selling May on record.

The Vancouver experience is being watched closely in Ontario, which in April instituted a 15% tax on non-resident buyers in the Toronto area, where March prices climbed 33% year over year.

Listings have surged since and realtors say prices are dropping, but officials numbers from the Toronto Real Estate Board are not due out until Monday.

In Greater Vancouver, May new listings for detached, attached and apartment properties were 6,044 in May 2017, a 3.9% decrease compared to the 6,289 units listed a year earlier and a 23.2% increase from April 2017.

The month-over-month increase in new listings was led by detached homes at 27.1 per cent, followed by apartments at 22.7% and townhomes at 14.1%.

The total number of properties for sale on the MLS system in Metro Vancouver was 8,168, a 5.7% increase compared to May 2016 and a 4.5% increase compared to April 2017.

“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,” Oudil said.

The sales-to-active listings ratio across all residential categories was 53.4%. By property type, the ratio is 31% for detached homes, 76.1% for townhomes, and 94.6% for condominiums.

“Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months,” the board said.

The home price index composite benchmark price for all residential properties in Metro Vancouver was $967,500 last month, an 8.8% increase over May 2016 and a 2.8% increase compared to April 2017.

Sales of detached properties last month were 1,548, a drop of 17% from a year earlier. The benchmark price for a detached property was $1,561,000, a 3.1% increase from May 2016 and a 2.9% increase compared to April 2017.

Apartment sales were 2,025 in May, a decline of of 5.8% from a year ago. The benchmark of $571,300 was up 17.8% increase from a year ago and 3.1% from April 2017.

Vancouver Real Estate Market Heating Up Again as Sales & Prices Rise by Garry Marr | Financial Post