Reduced Demand is Allowing Vancouver’s Housing Supply to Accumulate
“With fewer homes selling today compared to recent years, the number of homes available for sale is rising,” said Phil Moore, REBGV President. “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.”
Homebuyer demand continues to decline across the Metro Vancouver* housing market. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,833 in May 2018, a 35.1% decrease from the 4,364 sales recorded in May 2017, and a 9.8% increase compared to April 2018 when 2,579 homes sold.
Last month’s sales were 19.3% below the 10-year May sales average. There were 6,375 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in May 2018. This represents a 5.5 % increase compared to the 6,044 homes listed in May 2017 and a 9.5 % increase compared to April 2018 when 5,820 homes were listed.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 11,292, a 38.2% increase compared to May 2017 (8,168) and a 15% increase compared to April 2018 (9,822). The total number of listings available today is 17.2% below the 10-year May average.
For all property types, the sales-to-active listings ratio for May 2018 is 25.1%. By property type, the ratio is 14.7% for detached homes, 30.8% for townhomes, and 41.7% for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
“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. It’s also important to work with your local Realtor to better understand these changing conditions.” – Phil Moore, REBGV President
* Includes: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta.
All information courtesy of the Real Estate Board of Greater Vancouver