As the warmer weather ramped up across Metro Vancouver last month, the demand for residential property continued to ease. With the gradual rise in home supply, buyers were still taking things slow, spending more time assessing the market and enjoying being able to weigh up their options.
“Home buyers are exercising more caution in today’s market in response to rising interest rates and inflationary concerns. This allowed the selection of homes for sale to increase and prices to edge down in the region over the last three months”, says Daniel John, Chair of the Real Estate Board of Greater Vancouver (REBGV).
Housing Market at a Glance
Last month, the REBGV reported that residential home sales in the region totalled 1,887. This reflects a 43.3% drop from the 3,326 sales recorded a year earlier in July 2021, and a 22.8% decrease from the 2,444 homes sold a month earlier this year in June.
With the housing market entering a new cycle, quieter home buyer demand has dipped sales by 35.2% below the 10-year July sales average.
Across Metro Vancouver, 3,960 detached, attached and apartment properties were newly listed for sale in July on the Multiple Listing Service® (MLS®) – 9.5% less than the 4,377 homes listed in the same month a year earlier, and down 24.7% compared to June just been, which saw 5,256 new homes listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,288 – a 4.4% jump up from the 9,850 listings we saw in July last year, but still a small decrease from the 10,425 homes we’ve recently saw listed in June (-1.3%).
John adds, “After two years of market conditions that favoured home sellers, home buyers now have more selection to choose from and more time to make their decision. In today’s changing housing market, both home buyers and sellers should invest the time to understand what these changes mean for their personal circumstances.”
Sales-to-Active Listings Ratio and Composite Benchmark Price
For all property types, the sales-to-active listings ratio for July 2022 was 18.3%. By property type, that ratio came out as:
Detached homes: 11.8%
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 $1,207,400. This represents a 10.3% increase over July back in 2021, but a 2.3% dip compared to June this year.
Metro Vancouver Home Sales by Property Type
There were 523 sales of detached homes in July, a 50.2% drop from the 1,050 detached sales recorded in July a year earlier. The benchmark price for a detached home is $2,000,600. This represents a 11% jump up from July back in 2021 but a 2.8% decrease compared to June just been.
Sales of apartment homes reached 1,060 in July. This dropped down by 36.4% compared to the 1,666 sales recorded in July 2021. The benchmark price of an apartment home is $755,000 – that’s 11.4% above July 2021 but a 1.5% drop compared to June this year.
Attached home sales last month totalled 304, a 50.2% decrease compared to the 610 sales recorded in the same month a year ago. The benchmark price of an attached home is $1,096,500. A figure up 15.8% from July in 2021 but still 1.7% down compared to this year in June.
If you’re interested in finding out more about current trends for buyers and sellers across Metro Vancouver, reach out to one of our local, expert REALTORS® today. Every one of our agents is committed to offering you an unparalleled experience, whether you’re on your first or most recent buying or selling journey.
*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.