VANCOUVER (NEWS 1130) – Tougher mortgage qualification rules did not stop Vancouver-area home prices from heating up in May, posting double-digit gains driven by the condo market. The Real Estate Board of Greater Vancouver says sales fell 35.1% from a year earlier to 2,833.

Although they were 19.3% lower than the 10-year May average, sales were up 9.8% from April. Listings rose, too, increasing by 9.5%.

“For home sellers to be successful in today’s market, it’s important to price your property competitively given the shifting dynamics we’re experiencing,” Board president Phil Moore explains. “It’s also important to work with your local Realtor to better understand these changing conditions.”

Prices were sharply higher. The industry group’s composite benchmark price for apartment-style condos jumped 20.2% from a year earlier to $701,700. Prices for single-detached houses were up much less, 2.4%, to an average of $1.6 million. Sales of detached properties were down 40.2% from the previous May. The sales-to-listings ratio for the category was 14.7%, which the board says is less than three points above the level where “downward pressure on home prices occurs.” For condos the ratio is 41.7, more than double the level for upward price pressure.

For all types of properties combined, the benchmark price was up 11.5% to $1.09 million.

“The selection of homes for sale in Metro Vancouver has risen to the highest levels we’ve seen in the last two years, yet supply is still below our long-term historical averages,” Moore adds.

Metro Vancouver Condo Market Drives Big Price Increase in May as Sales Sink by Richard Dettman | News1130