In June 2023, residential home sales in Metro Vancouver reached a total of 2,988, marking a significant 21.1 per cent increase compared to the same period in 2022. However, despite the robust sales figures, this number fell 8.6 per cent below the 10-year seasonal average of 3,269.
Benchmark price of apartments nears 2022 peak
Andrew Lis, the director of economics and data analytics at REBGV, highlighted the apartment segment’s impressive performance in June, saying “The market continues to outperform expectations across all segments, but the apartment segment showed the most relative strength in June.”
Lis further added that the benchmark price of apartment homes is on the verge of surpassing the peak reached in 2022, and apartment sales have exceeded the region’s ten-year seasonal average. This sets the apartment segment apart from the attached and detached segments, which saw sales remaining below the ten-year averages.
New listings of detached, attached, and apartment properties totalled 5,348 in June 2023, reflecting a modest 1.3 per cent increase compared to June 2022’s figure of 5,278 homes. However, this number fell 3.1 per cent below the 10-year seasonal average of 5,518 homes.
Listings down 7.9% year-over-year
The current number of homes listed for sale on MLS in Metro Vancouver stands at 9,990, representing a 7.9 per cent decrease from June 2022. These figures indicate a 17.4 per cent drop from the 10-year seasonal average of 12,091 homes.
The sales-to-active listings ratio for June 2023, including detached, attached, and apartment properties, is 31.4 per cent. The ratio further breaks down into 20.9 per cent for detached homes, 38.5 per cent for townhomes, and 39.4 per cent for apartments. REBGV notes historical data analysis reveals that when the ratio falls below 12 per cent for an extended period, downward pressure is exerted on home prices. Conversely, when the ratio exceeds 20 per cent over several months, home prices often experience upward pressure.
Limited inventory continues to drive up home prices
Despite increased borrowing costs, the limited resale inventory relative to the pool of buyers in Metro Vancouver continues to be the fundamental reason for the month-over-month price increases across all segments, according to Lis.
He called on the provincial government to adjust the Property Transfer Tax exemption threshold for first-time homebuyers, which currently stands at $525,000. Lis argues that this threshold should better reflect the price of entry-level homes in the region, particularly as the benchmark price for apartments climbs to $767,000, adding, “This is a simple policy adjustment that could help more first-time buyers afford a home right now.”
HPI up 1.3% month-over-month
As of now, the MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1.2 million. This represents a 2.4 per cent decrease compared to June 2022 but indicates a 1.3 per cent increase from May 2023.
In terms of property types, detached home sales reached 848 in June 2023, reflecting a significant 28.3 per cent increase from the 661 sales recorded in June 2022. The benchmark price for a detached home currently stands at $1.99 million, showing a 3.2 per cent decrease compared to June 2022 and a 1.9% per cent increase from May 2023.
Apartment home sales in June 2023 reached 1,573, signifying an 18.6 per cent increase compared to the 1,326 sales in June 2022. The benchmark price for an apartment home is $767,000, marking a 0.5 per cent increase from June 2022 and a 0.8 per cent increase from May 2023.
Finally, attached home sales in June 2023 totalled 547, representing a notable 17.6 per cent increase compared to the 465 sales in June 2022. The benchmark price of an attached home is $1.1 million, indicating a one per cent decrease from June 2022 but a 1.5 per cent increase from May 2023.
