August is a time when vacations are calling, a new school year is approaching and buyers and sellers generally take time out to enjoy a quieter end to their summer season.
This year, August looked no different, as Metro Vancouver’s housing market experiencing reduced sale and listing activity.
Andrew Lis, Director of Economics and Data Analysis at the Real Estate Board of Greater Vancouver (REBGV), touched on additional factors also shaping last month’s trends, sharing that “With inflationary pressure and interest rates on the rise, home buyer and seller activity shifted below our long-term seasonal averages this summer. This shift in market conditions caused prices to edge down over the past four months.”
Housing Market at a Glance
Last month, the REBGV reported that residential home sales in the region totalled 1,870. This indicates a 40.7% drop from the 3,152 sales recorded one year earlier in August 2021, as well as a 0.9% decrease from July the month prior, which saw 1,887 homes sold.
As the housing market in the region continues to see new change, the number of sales registered last month sat at 29.2% below the 10-year August sales average.
Across Metro Vancouver, 3,328 detached, attached and apartment properties were newly listed for sale throughout August on the Multiple Listing Service® (MLS®) – 17.5% less than the 4,032 homes listed in the same month a year earlier, and down 16% compared to July just been, which saw 3,960 new homes listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,662– a 7.3% jump up from the 9,005 listings we saw in August 2021, but still down 6.1% from the 10,288 homes listed in July earlier this year.
Lis went on to add, “Home buyers and sellers are taking more time to assess what this changing landscape means for their housing needs. Preparation is critical in today’s market.” He suggests working with your Realtor to assess what today’s home prices, financing options, and other considerations mean for you.
Sales-to-Active Listings Ratio and Composite Benchmark Price
For all property types, the sales-to-active listings ratio this year for August was 19.4%. By property type, that ratio came out as:
Detached homes: 12.2%
Generally, analysts say 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.
For all residential properties in Metro Vancouver, the MLS® Home Price Index composite benchmark is currently $1,180,500. This represents a 7.4% increase over August 2021, but a 2.2% dip compared to July this year.
Metro Vancouver Home Sales by Property Type
Detached home sales in August reached 517 – a 45.3% decrease from the 945 sales recorded in the same month last year. The benchmark price for a detached home is $1,954,100. This represents a 7.9% increase from August 2021, but a 2.3% decrease compared to earlier this year in July.
998 apartments sold in August – 38.8% less compared to the 1,631 sales last year in August. The benchmark price of an apartment home is $740,100. This represents an 8.7% jump up from August 2021 but a 2% dip compared to July just been.
August saw 355 attached home sales – 38.4% less than the 576 sales a year ago in the same month. The benchmark price of an attached home is $1,069,100. This is up 12.7% from August 2021, but down slightly by 2.5% compared to July a month prior.
*Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.