Housing market moderates in July

The hottest real estate market in recent memory showed signs of cooling in July, but realtors in Maple Ridge and Pitt Meadows say it is still a seller’s market.

“We’re still getting multiple offers on a lot of properties, especially townhouses,” said Dianne Fernandes Enns of the Royal LePage Brookside Realty team.

Enns said properties are no longer selling for prices way above asking, as they were in the spring.

Her professional experiences are born out by the stats from the Real Estate Board of Greater Vancouver (REBGV), which reports home sales in the region totalled 3,326 in July 2021 – a 6.3 per cent increase from the 3,128 sales recorded in July 2020, and an 11.6 per cent drop from the 3,762 homes sold in June 2021.

Last month’s sales were 13.3 per cent above the 10-year July sales average.

“Moderation was the name of the game in July,” said REBGV economist Keith Stewart. “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 leveled off in most areas and home types.”

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There were 4,377 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service in Metro in July 2021. This represents a 26.4 per cent decrease compared to the 5,948 homes listed in July 2020 and a 25.2 per cent decrease compared to June 2021 when 5,849 homes were listed.

July’s new listings were 12.3 per cent below the 10-year average for the month.

“I had a client who was looking for a single family home, and it’s tough to find anything,” noted Enns.

She doesn’t believe sales will drop significantly over the long term, noted that an influx of foreign investment could again bring greater activity to the Vancouver market, with ripple effects across the Lower Mainland.

“Maple Ridge is very popular,” said Enns. “It’s one of the last places you can get a single family home for $1 million.

The benchmark price of a house in Greater Vancouver in July was $1.8 million, compared to $1.13 million in Maple Ridge and $1.19 million in Pitt Meadows.

READ ALSO: Home sales down 8.4% month-over-month in June, say real estate professionals

Multiples are much more affordable. The benchmark price of a Greater Vancouver townhouse is $949,000, compared with $688,000 in Maple Ridge and $753,000 in Pitt Meadows.

The benchmark price of a Greater Vancouver apartment is $737,000 compared with $426,000 in Maple Ridge and $544,000 in Pitt Meadows.

Sales across the region dropped 18 per cent last month, but were down 14 per cent in Maple Ridge/Pitt Meadows. Listings dropped 32 per cent in Greater Vancouver, but were down 18 per cent locally.

“Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” Stewart said. “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.”