Competition among buyers in Metro Vancouver’s housing market heats up as summer arrives
While the year started slower than usual, Metro Vancouver’s housing market is showing signs of heating up as summer arrives, with prices increasing for the sixth consecutive month.The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totaled 3,411 in May 2023, which is a 15.7 percent increase from the 2,947 sales recorded in May 2022, and a 1.4 percent decline from the 10-year seasonal average (3,458).
“Back in January, few people would have predicted prices to be up as much as they are – ourselves included,” Andrew Lis, REBGV’s director of economics and data analytics said. “Our forecast projected prices to be up modestly in 2023 by about two percent at year-end. Instead, Metro Vancouver home prices are already up about six percent or more across all home types at the midway point of the year.”
There were 5,661 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in May 2023. This represents an 11.5 percent decrease compared to the 6,397 homes listed in May 2022, and was 4.3 percent below the 10-year seasonal average (5,917).
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,293, a 10.5 percent decrease compared to May 2022 (10,382), and 20.6 percent below the 10-year seasonal average (11,705).
Across all detached, attached, and apartment property types, the sales-to-active listings ratio for May 2023 is 38.4 percent. By property type, the ratio is 28.5 percent for detached homes, 45 percent for townhomes, and 45.5 percent for apartments.
Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 percent for a sustained period, while home prices often experience upward pressure when it surpasses 20 percent over several months.
“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,” Lis said. “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 5.6 percent decrease over May 2022 and a 1.3 percent increase compared to April 2023.
Sales of detached homes in May 2023 reached 1,043, a 30.7 percent increase from the 798 detached sales recorded in May 2022. The benchmark price for a detached home is $1,953,600. This represents a 6.7 percent decrease from May 2022 and a 1.8 percent increase compared to April 2023.
Sales of apartment homes reached 1,730 in May 2023, a 7.9 percent increase compared to the 1,604 sales in May 2022. The benchmark price of an apartment home is $760,800. This represents a two percent decrease from May 2022 and a 1.1 percent increase compared to April 2023.
Attached home sales in May 2023 totalled 608, a 16.7 percent increase compared to the 521 sales in May 2022. The benchmark price of an attached home is $1,083,000. This represents a 4.7 percent decrease from May 2022 and a 0.2 percent increase compared to April 2023.
Source - REBGV
