According to data from the Real Estate Board of Greater Vancouver (REBGV – snappy!) the number of homes for sale increased by a whopping 28 percent in January when compared to the previous year’s figures. In fact the increase was 244 percent from December to January, and whilst you would expect a sharp post-Christmas/New Year increase, this level of rise really is unprecedented.
Combine this with the fact that sales dropped by 39 percent during the same period and you have a recipe for favourable buying conditions.
Let’s have a look at what this means selling-wise:
- Around 7 out of every 100 detached homes on the market are being sold each month
- Around 12 out of every 100 townhouses on the market are being sold each month; and
- Around 14 out of every 100 condos on the market are being sold each month
So for whatever reason buyers are still cautious and there are still a lot of would be buyers who are staying put or keeping a watching brief. Clearly it’s not property availability that’s preventing would be buyers taking the plunge, so what is it?
The mortgage stress test?
The imposition of the mortgage stress test by the Federal Government along with an increase in mortgage rates means that as much as 25% of a potential buyer’s purchasing power has been lost.
The Royal Bank of Canada state that detached homes are at their highest prices relative to income than they have ever been in Vancouver currently. Even condos are at thirty year high; all of this adds clarity to the current state of play in the housing market.