Summer is bringing the (housing) heat across the Metro Vancouver^ property market with competition heating up amongst buyers.
While the year started off slower than usual, the increase in buyer demand sees further price increases for the sixth consecutive month.
Residential Home Sales
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales across the region last month totalled 3,411*, a 15.7% increase from the 2,947 sales recorded in the same month one year ago, however they took a 1.4% dip from the 10-year seasonal average (3,458).
Andrew Lis, Director of Economics and Data Analytics at the REBGV commented on recent trends by saying, “Back in January, few people would have predicted prices to be up as much as they are – ourselves included. Our forecast projected prices to be up modestly in 2023 by about two per cent at year-end. Instead, Metro Vancouver home prices are already up about six per cent or more across all home types at the midway point of the year.”
Inventory
Last month in May, there were 5,661 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver. Compared to the 6,397 homes listed in the same month one year ago, this represents a drop by 11.5%. Compared to the 10-year seasonal average, this figure is down 4.3% (5,917).
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,293. A 10.5% decrease compared to May 2022 (10,382) and 20.6% below the 10-year seasonal average (11,705).
Sales-to-Active Listings Ratio and Composite Benchmark Price
Across all detached, attached and apartment property types, the sales-to-active listings ratio last month was 38.4%.
By property type, the ratio is:
- Detached: 28.5%
- Townhomes: 45.0%
- Apartments: 45.5%
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 (from the REBGV) goes on to add, “You don’t have to squint to see the reason prices continue to increase. The fundamental issue remains that there are more buyers relative to the number of willing sellers in the market. This is keeping the amount of resale homes available in short supply”.
Further noting, “And in a surprising twist, MLS® sales in May snapped back closer to historical averages than we’ve seen in the recent past, despite mortgage rates being where they are now, and new listing activity having been slower than usual this spring. If mortgage rates weren’t holding back market activity so much right now, I think our market would look a lot like the heydays of 2021/22, or even 2016/17.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,188,000. This represents a 5.5% decrease over May back in 2022 and a 1.3% increase compared to April just been.
Metro Vancouver Home Sales by Property Type
Detached Homes
Sales of detached homes last month in May reached 1,043 – a 30.7% increase from the 798 detached sales recorded in May last year. The benchmark price for a detached home is $1,953,600. This represents a 6.7% drop from May in 2022 but up 1.8% compared to one month earlier in April this year.
Apartment Homes
Sales of apartment homes reached 1,730 this May, a 7.9% increase compared to the 1,604 sales in May last year. The benchmark price of an apartment home is $760,800. This represents a 2% decrease from May in 2022 and a 1.1% increase compared to April this year.
Attached Homes
Attached home sales last month totalled 608. This represents a 16.7% increase compared to the 521 sales in May last year. The benchmark price of an attached home is $1,083,000**. This is 4.7% lower than May 2022 but up 0.2% compared to April just been.
Welcome to an Elevated Real Estate Experience
At Stilhavn, we continue our relentless pursuit of excellence because it’s our intrinsic belief that our clients deserve better than the status quo. When you become a client with Stilhavn you become a client for life, and it is our privilege to serve not only our local Metro Vancouver markets, but to further corners within the beautiful Okanagan.
We keep our fingers on the pulse, we collaborate extensively across our teams, and we are committed to providing an elevated experience when it comes to your next buying or selling journey.
^Areas covered by the Real Estate Board of Greater Vancouver include: Bowen Island, 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.
* The REBGV is now including multifamily and land sales and listings in this monthly report. Previously, they only included detached, attached, and apartment sales, and these additional categories, which typically account for roughly 1-2% of total MLS® activity per month, are being included for completeness in our reporting.
** The national MLS® Home Price Index (MLS® HPI) operations group underwent an annual review of the model in May in-line with statistical best practices. The attributes and neighbourhoods within the model were updated based on sales data to more accurately reflect current market conditions. To ensure the MLS® HPI coverage is consistent and comparable, historical aggregate and composite data has been recalculated.
