Residential Housing Market at a Glance
Residential home sales across Metro Vancouver^ started showing a surprising comeback last month, with levels rising near to those seen last spring.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,741* last month, and although rising, were still down (16.5%) from the 3,281 sales recorded back in April of last year. When looking at the 10-year seasonal average, April 2023 sales were down 15.6%.
Andrew Lis, Director of Economics and Data Analytics at the REBGV commented, “The fact we are seeing prices rising and sales rebounding this spring tells us home buyers are returning with confidence after a challenging year for our market, with mortgage rates roughly doubling. The latest MLS HPI® data show home prices have increased about five per cent year-to-date, which already outpaces our forecast of one to two per cent by year-end. The year is far from over, however, and it remains to be seen if these price increases will be sustained into 2024.”
The Market in More Detail
Looking at new listings across the region, there were 4,307 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) last month. Compared to the 6,128 homes listed in the same month last year, this figure was down 29.7% year over year, and 22% below the 10-year seasonal average (5,525).
The total number of homes currently listed for sale on the MLS® system came in at 8,790. Down 4.2% compared to April in 2022 (9,176) and 20.9% below the 10-year seasonal average (11,117).
Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
Lis (REBGV) went on to add that, “When we released our market forecast in January, we were one of the only organizations taking the contrarian view that prices were likely to appreciate in 2023, and what we’re seeing unfold so far this year is consistent with our prediction that near record-low inventory levels would create competitive conditions where almost any resurgence in demand would translate to price escalation, despite the elevated borrowing cost environment. At the crux of it, the issue remains a matter of far too little resale supply available relative to the pool of active buyers in our market.”
Composite Benchmark Price
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,170,700. This represents a 7.4% decrease over April 2022 and a 2.3% increase compared to March earlier this year.
Metro Vancouver Home Sales by Property Type
Sales of detached homes in April 2023 reached 808, a 16.3% decrease from the 965 detached sales recorded in April 2022. The benchmark price for detached properties is $1,915,800. This represents an 8.8% decrease from April 2022 and a 2.9% increase compared to March 2023.
Attached home sales in April 2023 totalled 500, a 13.5% decrease compared to the 578 sales in April 2022. The benchmark price of an attached unit is $1,078,400. This represents a 6.1% decrease from April 2022 and a 2.1% increase compared to March 2023.
Sales of apartment homes reached 1,413 in April 2023 – a 16.5% decrease compared to the 1,693 sales in April 2022. The benchmark price of an apartment property is $752,300. This represents a 3.1% decrease from April 2022 and a 2% increase compared to March 2023.