July Real Estate Board statistics were just released and it seems like we’re seeing a jump in the market. July was the second highest sales month so far this year. Sales this past month were actually slightly higher than the same period last year. The number of properties being listed were similar to last month but we experienced a 24% increase in sales.
So the number of properties added to MLS® remained steady but there’s been a significant increase in the number of homes being sold. This translates into more demand, keeping prices stable. One of the measures for real estate activity is the sales-to-active ratio (derived by dividing homes for sale by total inventory). Prices will usually drop if the ratio is less than 12% for a period of time, or increase if ratio is above 20%. The current sales ratio is 18% which indicates a balanced market and is close to the zone of a seller market.
What’s Our Take On The Market?
What’s my take on the currently Real Estate Board statistics for July? We’re still down about 10% from the peak of the market last year. I feel many buyers have been sitting on the sidelines for a while and we’re seeing many deciding it’s time to move forward and make their purchase. Buyers are feeling comfortable with the lower prices, interest rates and more selection of properties. I feel it’s clear there isn’t going to be a dramatic drop in the housing market and we’re likely reaching the bottom.
As a REALTOR® i’m glad to see a balanced market. A lot of our transactions involve clients buying and selling, or vis-versa. In a balanced market clients complete their transactions with reasonably less difficulty and stress.
Thinking of Selling Your Home?
If you’re considering buying or selling this coming fall, feel free to reach out to us, it’s never too early to open a discussion and start planning. Visit our Vancouver REALTOR® page to message us.