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 reports that residential home sales in the region totalled 1,887 in July 2022, a 43.3 per cent decrease from the 3,326 sales recorded in July 2021, and a 22.8 per cent decrease from the 2,444 homes sold in June 2022.
Last month’s sales were 35.2 per cent 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® in Metro Vancouver in July 2022. This represents a 9.5 per cent decrease compared to the 4,377 homes listed in July 2021 and a 24.7 per cent 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 per cent increase compared to July 2021 (9,850) and a 1.3 per cent 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 per cent. By property type, the ratio is 11.8 per cent for detached homes, 20 per cent for townhomes, and 24.5 per cent 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 $1,207,400. This represents a 10.3 per cent increase over July 2021 and a 2.3 per cent decrease compared to June 2022.
Sales of detached homes in July 2022 reached 523, a 50.2 per cent 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 per cent increase from July 2021 and a 2.8 per cent decrease compared to June 2022.
Sales of apartment homes reached 1,060 in July 2022, a 36.4 per cent 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 per cent increase from July 2021 and a 1.5 per cent decrease compared to June 2022.
Attached home sales in July 2022 totalled 304, a 50.2 per cent 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 per cent increase from July 2021 and a 1.7 per cent decrease compared to June 2022.
Total inventory for the Real Estate Board of Great Vancouver and the Fraser Valley Real Estate Board declined for the first time in 6 months to 15,975 listings which were 1.8% lower than June. Inventory remains constrained as it lies 17% below the July past decade-average listings count.
On a month-to-month basis, listings fell across all home types. Detached home listings declined by 3% (to 7,418), condo listings fell by 1.5% (to 5,591), and townhome listings were down by 0.5% (to 2,499). Compared to July 2021, detached home and townhome listings were up by 18% and 43%, respectively, whereas condo listings were down 0.8%.
July’s total sales-to-listings ratio declined between June and July to 17%, creating balanced market conditions for the first time since May 2020. Sales-to-listings ratios fell to 12%, 19%, and 25% for detached homes, townhomes and condos, respectively. This made the detached home market a buyer’s market in July, conditions last experienced in April 2020.
On a month-to-month basis, median MLS sales prices in the Greater Vancouver and the Fraser Valley board areas declined across all home types. In the Greater Vancouver board area, detached homes median prices declined by 3%, townhomes by 4%, and condos by 0.8%. In the Fraser Valley board area, median prices declined by 4%, 1.8%, and 0.9% for detached homes, townhomes, and condos, respectively.
Despite the monthly declines, median MLS sales prices in both the Greater Vancouver and Fraser Valley Board areas remained above July 2021 across all home types. Detached home median prices were 9% and 8% higher, while townhomes were up 11% and 15%; and condos 7% and 19% for the Greater Vancouver board area and the Fraser Valley board area, respectively.