The demand for homes is continuing to decrease across the Metro Vancouver housing market, reports the Real Estate Board of Greater Vancouver (REBGV).
In May 2018, there were a total of 2,833 residential property sales in the region, a 35.1 per cent decline compared to the 4,364 sales recorded in May 2017, and a 9.8 per cent increase compared to April 2018’s 2,579 home sales. In addition, May 2018’s sales were 19.3 per cent below the 10-year sales average for the month.
“With fewer homes selling today compared to recent years, the number of homes available for sale is rising,” said Phil Moore, REBGV president, in a press release. “The selection of homes for sale in Metro Vancouver has risen to the highest levels we’ve seen in the last two years, yet supply is still below our long-term historical averages.”
May 2018 saw 6,375 detached, attached and apartment properties newly listed for sale on Metro Vancouver’s Multiple Listing Service (MLS), which is a 5.5 per cent increase year-over-year, and a 9.5 per cent increase compared to April 2018, when 5,820 homes were newly listed.
The total number of properties currently listed for sale on Metro Vancouver’s MLS system is 11,292, a 38.2 per cent increase compared to May 2017’s 8,168 listings, and a 15 per cent increase compared to the previous month, when there were a total of 9,822 homes listed for sale. The total number of listings currently available is 17.2 per cent below the 10-year average for May.
For all property types, the sales-to-active listings ratio for May 2018 is 25.1 per cent. When separated by property type, the ratio is 14.7 per cent for detached homes, 30.8 per cent for townhomes, and 41.7 per cent for condominiums. Generally, analysts maintain that downward pressure on home prices occurs when the ratio falls below the 12 per cent mark for a sustained period, while prices often experience upward pressure when the ratio exceeds 20 per cent for a long period of time.
“For home sellers to be successful in today’s market, it’s important to price your property competitively given the shifting dynamics we’re experiencing,” added Moore.
The MLS Home Price Index composite benchmark price for all homes currently for sale in Metro Vancouver is sitting at $1,094,000, which is an 11.5 per cent increase compared to May 2017, and a 0.2 per cent increase month-over-month.
There were 1,431 condominium apartment sales in May 2018, a 29.3 per cent decline compared to the 2,025 sales in May of last year. The benchmark price for an apartment property in Metro Vancouver climbed 20.2 per cent year-over-year to reach $701,700. This figure is also a 0.1 per cent increase compared to April 2018.