Greater Vancouver Realtors (GVR) reports that residential sales in the region totalled 2,733 in May, a drop of nearly 20 per cent from the 3,411 sales of May last year. Last month’s sales were also down 19.6 per cent from May’s 10-year seasonal average.
“The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data,” Andrew Lis, GVR’s director of economics and data analytics says.
“It’s a natural inclination to chalk these trends up to one factor or another, but what we’re seeing is a culmination of factors influencing buyer and seller decisions in the market right now. It’s everything from higher borrowing costs to worries about the economy, to policy interventions imposed by various levels of government.”
More inventory on offer
There were 6,374 detached, attached and apartment properties newly listed for sale on the MLS in Metro Vancouver last month, 12.6 per cent more than the 5,661 properties listed in May 2023 and seven per cent more than the 10-year seasonal average.
In total, there are 13,600 properties currently listed for sale, 46.3 per cent more than May 2023 and 19.9 per cent above the 10-year seasonal average. The sales-to-active listings ratio for May is 20.8 per cent across all property types.
“With market trends now tilting back toward more balanced conditions, as the number of new listings outpaces the number of sales, we should expect to see slower price growth over the coming months,” Lis notes. “Up until recently, prices were climbing modestly across all market segments. But with rising inventory levels and softening demand, buyers who’ve been waiting for an opportunity might have more luck this summer, even if borrowing costs remain elevated.”
Prices
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1,212,000, a 2.3 per cent increase over May 2023 and a 0.5 per cent increase from April 2024.
Currently, the benchmark price of a detached home is $2,062,600, an apartment home is $776,200 and a townhouse is $1,145,600.
Review the full report here.
