The latest data from the Real Estate Board of Greater Vancouver (REBGV) indicates that the Metro Vancouver housing market saw modest increases in home prices in March, despite new listings remaining below long-term historical averages. 

Home sales, however, had a stronger than expected spring showing, despite higher borrowing costs, according to REBGV.

The report shows that residential home sales in the region totalled 2,535 in March 2023, down 42.5 per cent from the 4,405 sales recorded in March 2022, and 28.4 per cent below the 10-year seasonal average. 

“On the pricing side, the spring market is already on track to outpace our 2023 forecast, which anticipated modest price increases of about one to two per cent across all product types.” 

– Andrew Lis, REBGV

The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1.14 million representing a 9.5 per cent decrease over March 2022 and a 1.8 per cent increase compared to February 2023.

According to Andrew Lis, REBGV’s director of economics and data analytics, the spring market is already on track to outpace the 2023 forecast on the pricing side, which anticipated modest price increases of about one to two per cent across all product types. 

Lis added, “The surprising part of this recent activity is that these price increases are occurring against a backdrop of elevated borrowing costs, below-average sales, and new listing activity that continues to suggest that sellers are awaiting more favourable market conditions.” 

There were 4,317 detached, attached and apartment properties newly listed for sale on MLS in Metro Vancouver in March 2023. This represents a 35.5 per cent decrease compared to the 6,690 homes listed in March 2022, and was 22.3 per cent below the 10-year seasonal average.

The total number of homes currently listed for sale on MLS in Metro Vancouver is 8,617, an 8.1 per cent increase compared to March 2022 and 17.3 per cent below the 10-year seasonal average.

Sales-to-active listings ratio

The sales-to-active listings ratio for March 2023 is 30.7 per cent. However, REBGV reports the ratio varies by property type, with detached homes at 23.3 per cent, townhomes at 36.7 per cent, and apartments at 34.9 per cent.

REBGV’s analysis of historical data suggests 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. 

“If home sellers remain on the sidelines, monthly MLS sales figures will continue to appear lower than historical averages as we move toward summer,” Lis said. 

“But it’s important to recognize the chicken-and-egg nature of these statistics. The number of sales in any given month is partially determined by the number of homes that come to market that month, along with the inventory of unsold homes listed in previous months. With fewer homes coming on the market, homes sales will remain lower than we’re accustomed to seeing at this point in the year, almost entirely by definition.” 

Detached sales

Sales of detached homes in March 2023 reached 734, down 43.6 per cent from the 1,302 detached sales recorded in March 2022. The benchmark price for detached properties is $1.86 million, down 11.2 per cent from March 2022 but up 2.7 per cent compared to February 2023.

Apartment home sales

Sales of apartment homes reached 1,311 in March 2023, down 43.2 per cent compared to the 2,310 sales in March 2022. The benchmark price of an apartment property is $737,400, down 4.6 per cent from March 2022 but up 0.7 per cent compared to February 2023.

Attached home sales

Attached home sales in March 2023 totalled 466, down 37.3 per cent compared to the 743 sales in March 2022. The benchmark price of an attached unit is $1,056,400, down 7.8 per cent from March 2022 but up 1.7 per cent compared to February 2023.