RSS

Competition among buyers in Metro Vancouver’s housing market heats up as summer arrives

VANCOUVER, BC – May 2, 2023 – With listing activity remaining below historical norms, home sales in Metro Vancouver1 have mounted a surprising comeback, rising near levels seen last spring, before eight consecutive interest rate hikes eroded borrowing power and brought home sales activity down along with it.


The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,7412 in April 2023, a 16.5 per cent decrease from the 3,281 sales recorded in April 2022, and 15.6 per cent below the 10-year seasonal average (3,249).

“The fact we are seeing prices rising and sales rebounding this spring tells us home buyers are returning with confidence after a challenging year for our market, with mortgage rates roughly doubling,” Lis said. “The latest MLS HPI® data show home prices have increased about five per cent year-to-date, which already outpaces our forecast of one to two per cent by year-end. The year is far from over, however, and it remains to be seen if these price increases will be sustained into 2024.”


There were 4,307 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2023. This represents a 29.7 per cent decrease compared to the 6,128 homes listed in April 2022, and was 22 per cent below the 10-year seasonal average (5,525).


The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,790, a 4.2 per cent decrease compared to April 2022 (9,176), and 20.9 per cent below the 10-year seasonal average (11,117).


Across all detached, attached and apartment property types, the sales-to-active listings ratio for April 2023 is 32.7 per cent. By property type, the ratio is 24.4 per cent for detached homes, 40.1 per cent for townhomes, and 37.4 per cent for apartments.


Analysis of the historical data suggests 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.

“When we released our market forecast in January, we were one of the only organizations taking the contrarian view that prices were likely to appreciate in 2023,” Lis said. “And what we’re seeing unfold so far this year is consistent with our prediction that near record-low inventory levels would create competitive conditions where almost any resurgence in demand would translate to price escalation, despite the elevated borrowing cost environment. At the crux of it, the issue remains a matter of far too little resale supply available relative to the pool of active buyers in our market.”


The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,170,700. This represents a 7.4 per cent decrease over April 2022 and a 2.4 per cent increase compared to March 2023.


Sales of detached homes in April 2023 reached 808, a 16.3 per cent decrease from the 965 detached sales recorded in April 2022. The benchmark price for detached properties is $1,915,800. This represents an 8.8 per cent decrease from April 2022 and a 2.9 per cent increase compared to March 2023.


Sales of apartment homes reached 1,413 in April 2023, a 16.5 per cent decrease compared to the 1,693 sales in April 2022. The benchmark price of an apartment property is $752,300. This represents a 3.1 per cent decrease from April 2022 and a two per cent increase compared to March 2023.


Attached home sales in April 2023 totalled 500, a 13.5 per cent decrease compared to the 578 sales in April 2022. The benchmark price of an attached unit is $1,078,400. This represents a 6.1 per cent decrease from April 2022 and a 2.1 per cent increase compared to March 2023.


Read

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 totalled 3,411 in May 2023, which is a 15.7 per cent increase from the 2,947 sales recorded in May 2022, and a 1.4 per cent 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 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.”

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 per cent decrease compared to the 6,397 homes listed in May 2022, and was 4.3 per cent 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 per cent decrease compared to May 2022 (10,382), and 20.6 per cent 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 per cent. By property type, the ratio is 28.5 per cent for detached homes, 45 per cent for townhomes, and 45.5 per cent for apartments.

Analysis of the historical data suggests 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.

“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 per cent decrease over May 2022 and a 1.3 per cent increase compared to April 2023.

Sales of detached homes in May 2023 reached 1,043, a 30.7 per cent 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 per cent decrease from May 2022 and a 1.8 per cent increase compared to April 2023.

Sales of apartment homes reached 1,730 in May 2023, a 7.9 per cent increase compared to the 1,604 sales in May 2022. The benchmark price of an apartment home is $760,800. This represents a two per cent decrease from May 2022 and a 1.1 per cent increase compared to April 2023.

Attached home sales in May 2023 totalled 608, a 16.7 per cent 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 per cent decrease from May 2022 and a 0.2 per cent increase compared to April 2023.


Read

September is typically a transitional month for the local real estate market as folks return back to normal routines after the summer break. In most years the September / Fall Real Estate market does not begin to gain momentum until the latter part of the month. As we close September this year the same can be held true.

We have compiled several stats below which will provide an overview of Vancouver’s Westside Housing market. September housing sales slowed from both July and August levels with the supply levels increasing. We now have approx. 8 months housing supply on the Westside versus less than 3 months supply back in the month of March.

Westside Housing ( Single Family Homes)

  • In September 2011 there were 104 homes sold vs 143 last September, an decline of 27%
  • Year to date 1683 homes have been sold vs 1329 last year, an increase of 26%
  • Average sale price was $ 2,407,014 this September vs $ 1,917,000 last September, an increase of 25%.
  • Year to date vs last year average sale prices are up 22% to $ 2,384,490
  • As at September 30th this year the supply of homes was 21% higher than September 2010.
  • We have 7.9 month’s supply at September 30th this year vs 4.7 month’s supply last year

Westside Housing ( Condos & Town homes)

  • In September 2011 there were 369 attached properties sold vs 373 last September.
  • Year to date 4081 attached properties have been sold vs 4045 last year, an increase of 1%
  • Average sale price of condos sold was $ 660,158 this September vs $ 589,170 last September, an increase of 12%.
  • Average sale price of a town home sold was $ 994,932 this September vs $ 946,207 last September , an increase of 5%.
  • Year to date average sale price of a condo is 7% higher than in 2010 and town home prices are 6% higher than 2010.
  • Supply of town homes and condos is down by 8% and 5%% respectively with month’s supply on the market indicating a balanced market for both categories.

Please keep in mind these figures are for Vancouver’s Westside only up until September 2011. Based on current market conditions, the Condo and Town Home market looks stable across Vancouver’s Westside.

The Housing ( Single Family Homes) market looks like it has softened in the past month with almost 8 months housing supply.

We cannot help but think the recent turmoil in the global financial markets is weighing on individuals decisions to buy a home. How this all plays out in our housing market is yet to be seen. Everyone has a varying opinion.

If you have any questions or would like specific information regarding the market value of your home we are always available to help.

Have a great day.

Andrew Hasman
Direct 604-657-7936
Re Max Andrew Hasman Realty
www.andrewhasman.com

Read

There goes Summer! That was fast! Hard to believe, shorter days, back to school and back to work is all hear! That being said, as I write this one of the warmest and sunniest stretches of weather lies ahead this Labour Day Weekend. We deserve it.

Vancouver’s Real Estate market on the Westside performed as expected in August with slower sales than July but overall market conditions remaining stable. Of the six properties I sold in August, five involved Multiple Offer scenarios with the final selling prices coming in at or over asking in all cases.

Here is how the numbers stack up:

Westside Housing ( Single Family Homes)

  • In August there were 130 homes sold vs 134 in last August, virtually even.
  • Year to date there have been 1579 homes sold vs 1186 in 2010, an increase of 33%
  • Average sale price was $ 2,494,938 this August vs $ 1,908,544 last year, an increase of 30%
  • Year to date vs last year average sale prices are up 22% to $ 2,383,006
  • As at August 31th this year supply of homes is 5% lower than the same time last year.
  • The months of supply is virtually even with last year at 5. Five month’s supply translates into a Balanced Market.

Westside Housing ( Condos & Townhomes)

  • Condo and Townhome sales were up 4% and 7% respectively compared to August of last year.
  • Year to date there have been 3712 attached properties sold vs 3672 last year. An increase of 1%
  • Average sale price of a Townhome was $ 1,026,417 this August vs $ 829,030, an increase of 23%
  • Average sale price of a Condo was $ 630,356 this August vs $ 586,215 last year, an increase of 7%
  • Year to date the average sale price of a Townhome is 6% higher than last year and Condo prices 7% higher.
  • The supply of condos and townhomes are both down by 11% and 16% respectively.

Please keep in mind these figures are Vancouver’s Westside only and only tell a general overview of the local market. These numbers do indicate a balanced Market in both the Detached and Attached market.

Compared to the Summer of 2010 this year the local market has performed better with prices holding stable and buyers remaining ( for the most part ) optimistic about Vancouver’s Real Estate market.

If you have any questions or would like specific market information regarding the market value of your home I am always available to help

Have a Great Day

Andrew Hasman
Re Max Andrew Hasman
Direct 604-657-7936

Graphics

Read
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.