The supply of homes in Metro Vancouver reached a three-year high in June according to the Real Estate Board of Greater Vancouver.
The board said this is because of home sales dropping below historical averages. In June, home sales were 29 per cent below the 10-year June sales average, resulting in the influx of homes on the market.
In Maple Ridge and Pitt Meadows, 222 homes sold in May, compared to a total of 157 homes in June.
Region wide for June, the real estate board reported 6,555 active listings for detached homes, 3,711 active listings for apartments and 1,681 active listings for townhouses, totalling 11,947. This is a 40 per cent increase compared to 8,515 homes listed the same time last year.
Jan Hickman of Maple Ridge’s Re/max Lifestyles Realty said that sales tend to slow down in the summertime.
“It’s the time as year as well, July is traditionally a slower month. We don’t always know what causes the slow down whether it’s market conditions or summer holidays, but generally July is a slower month,” said Hickman.
Phil Moore, REBGV president said in a news release that buyers are less active today.
“This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years. Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”
The reduced sales could result in a buyers’ market. Hickman and Moore both agreed detached homes are entering the market.
“With reduced remand, detached homes are entering a buyers’ market and price growth in our townhome and apartment markets is showing signs of decelerating,” said Moore.
Hickman called it a “changing market.”
“It’s definitely a changing market, things are a little slower than they have been at the beginning of the year. I don’t know if we’ve seen a whole lot of price reduction, but buyers are taking a longer look at what their money will buy,” added Hickman.
Single family home prices in Maple Ridge-Pitt Meadows have dropped May to June. The price of a detached home sold for an average of $883,000 in June – compared to $875,000 in May.
But a townhouse, sold for an average of $572,000 in June and $590,000 in May. An apartment sold an average of $398,450 in June and $405,750 in May.
