Home prices in Metro Vancouver continued to rise across all property types in July, according to new data from the Real Estate Board of Greater Vancouver (REBGV).
Residential home sales soared to 2,455 in July 2023, representing a 28.9 per cent year-over-year increase, though still 15.6 per cent below the ten-year seasonal average.
Andrew Lis, the director of economics and data analytics at REBGV, attributes the substantial year-over-year percentage increase to the aftermath of the Bank of Canada’s significant rate hike.
“Looking under the hood of these figures, it’s easy to see why sales are posting such a large year-over-year percentage increase,” Lis notes. “Last July marked the point when the Bank of Canada announced their ‘super-sized’ increase to the policy rate of one full per cent, catching buyers and sellers off guard and putting a chill on market activity at that time.”
Rise in new listings
The number of newly listed properties in Metro Vancouver rose 17 per cent year-over-year in July 2023, with 4,649 detached, attached and apartment homes hitting the market. However, this number still falls 5.2 per cent below the 10-year seasonal average.
Steady decline in active listings
The total number of homes currently listed for sale on MLS in Metro Vancouver stands at 10,301, a four per cent decrease from the same month in 2022 and 14.4 per cent below the 10-year seasonal average.
The sales-to-active listings ratio for July 2023 is 24.9 per cent across all property types, indicating a seller’s market. By property type, detached homes have a ratio of 16.5 per cent, townhomes at 32 per cent, and apartments at 30.6 per cent. Traditionally, when the ratio falls below 12 per cent for an extended period, home prices tend to experience downward pressure, whereas ratios above 20 per cent suggest upward pressure on prices.
“What’s interesting to see in the current market environment is that, while the Bank of Canada rate hike this July was only a quarter of a per cent, mortgage rates are now at the highest levels we’ve seen in Canada in over ten years,” Lis said.
“Yet despite borrowing costs being even higher than last July, sales activity surpassed the levels we saw last year, which I think says a lot about the strength of demand in our market and buyers’ ability to adapt to and qualify for higher borrowing costs.”
HPI and property type breakdown
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1.2 million, reflecting a 0.5 per cent increase from July 2022 and a 0.6 per cent increase compared to June 2023.
Detached homes: Sales of detached homes grew 28.7 per cent year-over-year, reaching 681 sales. The benchmark price for a detached home now stands at $2 million, indicating a 0.6 per cent increase from the previous year and a 1.1 per cent increase compared to June 2023.
Apartment homes: July 2023 saw 1,281 sales of apartment homes, marking a substantial 20.7 per cent increase from the 1,061 sales in July 2022. The benchmark price of an apartment home rose to $771,600, reflecting a 2.6 per cent increase from July 2022 and a 0.6 per cent increase compared to June 2023.
Attached homes: Sales of attached homes experienced the most significant year-over-year increase, with a 53.3 per cent jump in July 2023, totaling 466 sales compared to 304 sales in July 2022. The benchmark price of an attached home reached $1.1 million, signifying a 1.2 per cent increase from the previous year and a 0.5 per cent increase compared to June 2023.
