Thanks to the increased starts we’ve been seeing the past few months, we are moving closer towards a healthy level of new housing supply needed to satisfy demand here in Vancouver. However, with a total of 6,881 housing units breaking ground in the first half of this year, we’re unlikely to hit our ten-year average level of 15,360 housing units.
According to Canada Mortgage and Housing Corporation (CMHC), 1,250 housing starts were recorded in June 2010 across the Vancouver CMA.
“We have had a steady pace of new projects breaking ground, and together with a significant increase in the value of residential building permits recorded in May, we are well on track for total housing starts in 2010 to surpass the 10,000 mark” noted Robyn Adamache, Senior Market Analyst with CMHC. “But the current rate still suggests that we are likely to remain under the ten-year average level of 15,360 units.”
Although rental starts make up a small fraction of total starts, they are on their way up compared to past years. Rental housing starts have increased to 475 year to date, surpassing rental starts totals we’ve seen over the past five years.
Nationally, housing starts were down slightly in June, slipping to 189,300 units,
seasonally adjusted at annual rates (SAAR). In urban British Columbia, the seasonally adjusted annual rate of housing starts moved higher, edging up to 23,600 units, SAAR.
June is traditionally a quieter time of the year, and this year is not exception. Listings are coming on to the market at a slower pace than expected, and buyer demand is moderating. Overall numbers are showing a stable summer market ahead:
* A word of caution: When looking at the stats below, keep in mind that last year we saw the second highest selling June on record. It’s important to keep this fact in perspective when you read that ‘sales are down around 30% from last June’. Although this marks a significant decrease compared to last year, the numbers we are seeing are indicating that we are returning to more balanced market conditions.
“Activity in June marked a healthy balance between the near record setting pace of June 2009 and the considerably slower activity witnessed in June 2008, a period of recession as we all know,” Jake Moldowan, REBGV president said.
Below are the stats for June 2010 according to the Real Estate Board of Greater Vancouver (REBGV):
RESIDENTIAL PROPERTY SALES - DOWN 30.2% from last year
2,972 homes were sold in June 2010. Although this is down 30% from June 2009, keep in mind that last year we saw the second highest selling June on record. Compared to June 2008, last months sales were 22.6% higher. June 2010 sales also represent a 5.8% decline compared to the previous month’s sales totals.
“We didn’t experience any record-breaking activity in June, but we did see a stable summer market,” Moldowan said. “The number of new listings coming on the market is not as dramatic as we saw over the previous three months and demand remains at a healthy level for this traditionally quieter time of year.”
NEW LISTINGS - UP 3.2% from last year
5,544 properties were newly listed in June 2010. This is a 3.2% increase from this time last year, and a 21% decline from May 2010. At 17,564, the total number of property listings on the MLS® increased 1.2% in June compared to last month, and is up 32% compared to this time last year.
“There has been less upward pressure on prices in our market the last few months, which has allowed prices to ease back from the record high numbers seen in April,” Moldowan said.
HOUSING PRICE INDEX - UP 11.8% from last year
The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 11.8 per cent to $580,237 from $518,855 in June 2009.
SALES OF DETACHED PROPERTIES – DOWN 31.7% from last year
1,667 detached homes sold in June 2010. This is down 31.7% from last year, but represents a 24% increase from June 2008.
SALES OF APARTMENT PROPERTIES - DOWN 29.7% from last year
1,258 apartment properties sold in June 2010. This is down 29.7% from last year’s high, but up 19% from June 2008.
SALES OF ATTACHED PROPERTIES - DOWN 28.3% from last year
There were a total of 575 attached property sales in June 2010. Although this is down 28.3% from last year, it is up 27.8% from June 2008.