Real Estate News: Metro Vancouver Home Sales Quiet
The Real Estate Board of Greater Vancouver says home sales in the area have returned to “more typical seasonal levels” and there are modest signs that continued price increases may be easing.
A council statement reports 2,918 sales in Metro Vancouver in May, nearly 32% less than those recorded in May 2021 and 9.7% less than the number of residential properties that changed hands last month.
Council chairman Daniel John said May 2022 sales were also 12.9% below the 10-year sales average, while the number of properties listed for sale in May rose a little more than 4% compared to the previous month.
The council says the sales-to-active listings ratio for townhouses and apartments topped 35% last month, above the 20% level that may put upward pressure on prices, while the ratio for single-detached homes was 18.3%, closer to the 12 cents that can lower home prices.
The composite benchmark price for all residential properties in Metro Vancouver was $1,261,100, a 14.7% increase from May 2021 and a 0.3% decrease from April 2022.
John says steady price increases have started to subside over the past two months, but the lack of choice for homebuyers remains a key factor as the market cools.
“The next move in house prices will depend on the supply of housing.” he said in the statement.
“While we are beginning to see modest increases in home listings, we still need total housing supply to more than double to bring the market closer to balanced territory.”
John points to positive signs, including rising interest rates, which have encouraged buyers to take more time with their decisions.
“This spring provides a calmer environment with fewer multiple offer situations, allowing buyers to explore their housing options, understand the changing mortgage market and do their due diligence,” says John .
This report from The Canadian Press was first published on June 2, 2022.