Metro Vancouver’s housing market has entered a new cycle marked by quieter home buyer demand and a gradual rise in the supply of homes for sale.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,887 in July 2022, a 43.3% decrease from the 3,326 sales recorded in July 2021, and a 22.8% decrease from the 2,444 homes sold in June 2022.
Last month’s sales were 35.2% below the 10-year July sales average.
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.
There were 3,960 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in July 2022. This represents a 9.5% decrease compared to the 4,377 homes listed in July 2021 and a 24.7% decrease compared to June 2022 when 5,256 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,288, a 4.4% increase compared to July 2021 (9,850) and a 1.3% decrease compared to June 2022 (10,425).
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.
For all property types, the sales-to-active listings ratio for July 2022 is 18.3% By property type, the ratio is 11.8% for detached homes, 20% for townhomes, and 24.5% for apartments.
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.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,207,400. This represents a 10.3% increase over July 2021 and a 2.3% decrease compared to June 2022.
Sales of detached homes in July 2022 reached 523, a 50.2 % decrease from the 1,050 detached sales recorded in July 2021. The benchmark price for a detached home is $2,000,600. This represents an 11% increase from July 2021 and a 2.8% decrease compared to June 2022.
Sales of apartment homes reached 1,060 in July 2022; a 36.4% decrease compared to the 1,666 sales in July 2021. The benchmark price of an apartment home is $755,000. This represents an 11.4% increase from July 2021 and a 1.5% decrease compared to June 2022.
Attached home sales in July 2022 totalled 304, a 50.2% decrease compared to the 610 sales in July 2021. The benchmark price of an attached home is $1,096,500. This represents a 15.8% increase from July 2021 and a 1.7% decrease compared to June 2022.