|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 percent decrease from the 3,762 sales recorded in June 2021, and a 16.2 percent decrease from the 2,918 homes sold in May 2022.
“Home buyers have more selection to choose from and more time to make decisions than they did over the past year,” Daniel John, REBGV Chair said. “Rising interest rates and inflationary concerns are making buyers more cautious in today’s housing market, which is allowing listings to accumulate.”
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,425, a 3.8 percent decrease compared to June 2021 (10,839) and a 4.1 percent 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,” John said. “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 percent. By property type, the ratio is 14.3 percent for detached homes, 31.5 percent for townhomes, and 30.2 percent for apartments.
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.
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 percent increase over June 2021, a two percent decrease compared to May 2022, and a 2.2 percent decrease over the past three months.
Sales of detached homes in June 2022 reached 653, a 48.3 percent 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 percent increase from June 2021, a 1.7 percent decrease compared to May 2022, and a 1.8 percent decrease over the past three months.
Sales of apartment homes reached 1,326 in June 2022, a 25.3 percent 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 percent increase from June 2021, a 1.7 percent decrease compared to May 2022, and a 0.8 percent decrease over the past three months.
Attached home sales in June 2022 totalled 465, a 36 percent 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 percent increase from June 2021, a 2.2 percent decrease compared to May 2022, and a 2.7 percent decrease over the past three months.