If you purchased a home in 2021, you would have experienced a pretty active and competitive market, as Metro Vancouver* home sales reached record-breaking levels. As we move through the spring months this year, activity has begun returning to calmer, more typical seasonal levels, which in large part, is due to rising interest rates.
Daniel John, the Real Estate Board of Greater Vancouver (REBGV) Chair commented on these current trends further by saying, “With interest rates rising, home buyers are taking more time to make their decisions in today’s housing market. Home buyers have been operating in a frenzied environment for much of the past two years. This spring is providing a calmer environment, with fewer multiple offer situations, which is allowing buyers to explore their housing options, understand the changing mortgage market, and do their due diligence.”
The Housing Market at a Glance
Last month, The Real Estate Board of Greater Vancouver (REBGV) reported that residential home sales in the region totalled 2,918. This shows a 31.6% drop from the 4,268 sales recorded a year earlier in May 2021, and a 9.7% decrease from the 3,232 homes sold a month earlier this year throughout April.
This shift in the market put May home sales at 12.9% below the 10-year May sales average.
Across Metro Vancouver, 6,377 detached, attached and apartment properties were newly listed for sale in May on the Multiple Listing Service® (MLS®) – 10.5% less than the 7,125 homes listed in the same month a year earlier, but 4.4% more than in April (2022), which saw 6,107 homes listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,010 – 8.8% less than the 10,970 listings in May last year, however this is 13.8% more than in April just been (8,796 listings).
Sales-to-Active Listings Ratio and Composite Benchmark Price
For all property types, the sales-to-active listings ratio for May 2022 was 29.2%. By property type, that ratio came out as:
Detached homes: 18.3%
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
John (REBGV Chair) adds that, “Upward pressure on home prices has begun to ease in the housing market over the last two months. Where home prices go next will depend on housing supply. While we’re beginning to see modest increases in home listings, we still need housing supply totals to more than double to bring the market close to balanced territory.”
For all residential properties in Metro Vancouver, the MLS® Home Price Index composite benchmark is currently $1,261,1001. This represents a 14.7% increase over May back in 2021 and a 0.3% drop from April this year.
Home Sales by Property Type
Sales of detached homes in May this year reached 793, a 44.1% decrease from the 1,419 detached sales recorded the same month one year earlier. The benchmark price for a detached home is $2,093,600. This represents a 15% increase from May 2021 and a 0.4% decrease compared to the sales recorded back in April this year.
Sales of apartment homes reached 1,605 last month, reflecting a 21.7% decrease compared to the 2,049 sales in May a year ago. The benchmark price of an apartment home is $779,700 – 15% more than May 2021 and a 0.4% bump upwards compared to April 2022.
Sales of attached homes recently in May totalled 520, a 35% decrease compared to the 800 sales that took place back in May 2021. The benchmark price of an attached home is $1,141,200. This is 21.5% more than May last year but 0.6% less than April just been.
*’Metro Vancouver’ 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.