Drop in listings pushed up Vancouver home prices in July

by Neil Sharma on 05 Aug 2021

Home sales in Greater Vancouver declined on a monthly basis by 11.6% in July, the Real Estate Board of Greater Vancouver (REBGV) reported.

The 3,326 sales last month were still 6.3% higher than the 3,128 transactions in July 2020 and 13.3% over the 10-year average, but activity fell, perhaps expectedly, from highs attained earlier in the pandemic.

“Moderation was the name of the game in July,” said Keith Stewart, an REBGV economist. “Home sales and listings fell in line with typical seasonal patterns as summer got going in earnest in July. On top of moderating market activity, price growth has levelled off in most areas and home types.”

Listings for detached, semis and condos decreased by 26.4% to 4,377 from 5,948 in July of last year, although that could very well owe to mass COVID-19 vaccination allowing Vancouverites to travel or otherwise enjoy their summer. Still, listings last month declined from 5,849 in June and fell 12.3% below the 10-year average for July.

There were 9,850 homes for sale on the MLS at the end of July, decreasing by 18.5% year-over-year and 9.1% month-over-month from 12,083 and 10,839, respectively. Naturally, Vancouver’s housing supply shortage is pushing prices upward, with the benchmark price for all property types reaching $1,175,500 in Metro Vancouver—while that’s a 13.8% year-over-year increase, it was flat from June.

“Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” said Stewart. "Home sales remain above average and we’re starting to see price increases relent as well. Going forward, the supply of homes for sale will be among the most critical factors to watch. This will determine the next direction for house price trends."

Detached home sales in the region totalled 1,050 in July, down by 6.3% from 1,121 a year earlier, however, the benchmark price increased to $1,801,100 during that time but didn’t change from the month prior.

Semi-detached home sales marginally increased in July by 0.5% to 610 from 607 in July 2020, and the benchmark price rose by 16.7% year-over-year and 0.3% month-over-month to $949,400.

Condominium sales surged by 19% year-over-year in July to 1,666 from 1,400, while the benchmark price rose by 8.4% to $736,900 during the period, although it dropped by 0.1% from June.

The sales-to-active listings ratio in July was 33.8% for all property types. For detached homes it was 25.5%, 47.8% for townhomes, and 37.3% for condos.

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