With homebuyer demand below our long term historical averages in June, the supply of homes for sale in Metro Vancouver continue to accumulate.
REALTOR®’s registered 2,077 home sales on MLS® in June. The lowest sales total for the month since 2000. This is a decrease -21% over last month and -35% below our 10 year June sales average.
On the supply side 4, 751 homes were new listed for sale on MLS® last month. While this is below average pace for June. Reduced sales activity has allowed the total supply of homes for sale to grow to 14,968. Homebuyers haven’t had this much selection to choose from in the last 5 years.
The balance between supply and demand is what drives home prices. We measure this activity by dividing the number of sales in a month by the inventory of homes for sale. We call this the Sales-to- Active Listings Ratio (SAR).
Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period. Alternatively home prices can experience upward pressure when it surpasses 20% for a sustained period. The ratio today is 14%.
The benchmark price (MLS® HPI) for housing types for Metro Vancouver is $998,700 which is down about -9.6% over last year. This is the first time that the composite bench mark has dipped below one million dollars since May 2017.
By property type’s single family homes have declined the most over the last year at -10.9%. Followed by apartments and townhomes by -8.9% and -8.6% respectively.
Detached Homes MLS® HPI
-10.9% from June 2018
Condominiums MLS® HPI
-8.9% from June 2018
Townhomes MLS® HPI
-8.6% from June 2018
So what is causing today’s trends?
In addition to the economic and policy induced factors in play we’ve also seen an expectation gap emerge between homebuyers and sellers. Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach.
For sellers to be successful it is important to work with your local REALTOR® to ensure you are pricing you home right for today’s market!