Vancouver real estate market continues to bounce back

Four months of increasing buyer activity, double digit sale increases, and a reduction in property listings has put Vancouver's real estate market into a more balanced condition. Residential sales for Vancouver West increased 20.2 percent for detached homes, 4.1 percent for attached homes, and 26.6 percent for condominiums (apartments) over last month. New detached home listings are down 7.1 percent, but increased 2.5 percent for  attached homes, and 10.1 percent for condo's.

Vancouver West benchmark prices for detached, attached, and condominium homes all increased from April into May. Detached homes rose from $1,237,674 to $1,273,131, attached homes increased from $641,206 to $659,323, and condo's from $430,318 to $444,076. If we continue to see high levels of sales increases and demand, upwards pressure on pricing can be expected.

Since the beginning of the year, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 4.5 per cent to $506,201 from $484,211. However, home prices compared to May 2008 levels are still down 10.9 per cent.

Improved affordability continues to draw first time home buyer's back into the market as summer approaches. With entry level homes being purchased, move-up buyer's are now able to sell their homes and the market cycle once again functions more smoothly.

May demonstrated that entry level homes that are well maintained, and are priced accurately, are selling in multiple offer situations in a very short period of time. These conditions can be especially seen in Vancouver East where entry level detached homes are under very high demand with many homes selling over asking price in their first week.

It can be seen now that affordability reached a three year high in April this year, with lower home prices and low interest rates reducing the carrying cost of the average priced home by 24 percent.

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