With interest rates and housing supply increasing, Metro Vancouver* home buyers are operating in a changing marketplace to begin the summer season.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,444 in June 2022, a 35% decrease from the 3,762 sales recorded in June 2021, and a 16.2% decrease from the 2,918 homes sold in May 2022.
Last month’s sales were 23.3% below the 10-year June sales average.
Home buyers have more selection to choose from and more time to make decisions than they did over the past year. Rising interest rates and inflationary concerns are making buyers more cautious in today’s housing market, which is allowing listings to accumulate.
There were 5,256 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in June 2022. This represents a 10.1% decrease compared to the 5,849 homes listed in June 2021 and a 17.6% decrease compared to May 2022 when 6,377 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,425, a 3.8% decrease compared to June 2021 (10,839) and a 4.1% increase compared to May 2022 (10,010).
We’re seeing downward pressure on home prices as we enter summer in Metro Vancouver due to declining home buyer activity, not increased supply. To meet Metro Vancouver’s long-term housing demands, we still need to significantly increase housing supply.”
For all property types, the sales-to-active listings ratio for June 2022 is 23.4%. By property type, the ratio is 14.3% for detached homes, 31.5% for townhomes, and 30.2% or 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 $1,235,900. This represents a 12.4% increase over June 2021, a two% decrease compared to May 2022, and a 2.2% decrease over the past three months.
Sales of detached homes in June 2022 reached 653, a 48.3% decrease from the 1,262 detached sales recorded in June 2021. The benchmark price for a detached home is $2,058,600. This represents a 13.4% increase from June 2021, a 1.7% decrease compared to May 2022, and a 1.8% decrease over the past three months.
Sales of apartment homes reached 1,326 in June 2022, a 25.3% decrease compared to the 1,774 sales in June 2021. The benchmark price of an apartment home is $766,300. This represents a 12.7% increase from June 2021, a 1.7% decrease compared to May 2022, and a 0.8% decrease over the past three months.
Attached home sales in June 2022 totalled 465, a 36% decrease compared to the 726 sales in June 2021. The benchmark price of an attached home is $1,115,600. This represents a 17.8 % increase from June 2021, a 2.2% decrease compared to May 2022, and a 2.7% decrease over the past three months.