Metro Vancouver home sales eclipsed 2,000 for the first time in 2019 but demand remains well below historical averages.
REALTOR®’s registered 2,638 homes sales on the MLS® in May. This is an increase over last month (+44.2%) but -22.9% below our ten year May sales average.
High home prices and mortgage qualification issues caused by the Federal Government’s B20 Stress Test remain significant factors behind the reduced demand that we are seeing today.
On the supply side, 5,861 homes were listed for sale on MLS® last month. Bringing the total number of homes for sale to 14, 685. This is the highest total we have seen in our market since September 2014!
Supply and demand trends drive home prices in our market. We measure this activity by dividing the number of sales for the month by the total inventory of homes for sale. We call this the Sales-to-Active Listings Ratio or SAR. The SAR today is 18%. Generally analysts say downward pressure on home prices occur when the ratio dips below 12% for a sustained period. While home prices often experience upward pressure when it surpasses 20% for several months.
The benchmark price for all housing types in Metro Vancouver is $1,006,400 (May 2019 MLS® HPI for all residential) which is down -8.9% from May 2018.
At -11.5%, single family homes have declined the most this past year followed by townhomes and apartments at -7.6% and -7.3% respectively.
- MLS HPI $1,421,900 Detached Homes
- MLS HPI $779,400 Townhomes
- MLS HPI $664,200 Condominiums
It’s worth noting that the pace of price declines slowed in recent months.
Whether you are a buyer looking to make an offer or a seller to list your home, getting your pricing right is key in today’s market. To be competitive it’s important to work with your local REALTOR® to access and understand the latest trends in your neighborhood and property type of choice.