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Home sales down in Metro Vancouver as inventory rises: GVR

Greater Vancouver Realtors (GVR) reports home sales in the region totaled 2,733 in May, a decrease of almost 20 per cent from the 3,411 sales of May last year. Last month’s sales were also 19.6 percent lower than the 10-year seasonal average for May.

“The surprise in the May data is that sales have come in softer than what we would normally expect at this point in the year, while the number of new homes for sale is carrying some of the momentum seen is in the April data. ,” says Andrew Lis, director of economics and data analytics at GVR.

“It is a natural tendency to attribute these trends to one factor or another, but what we are seeing is a culmination of factors influencing the decisions of buyers and sellers in the market today. It includes everything from higher borrowing costs, to concerns about the economy, to policy interventions imposed by various levels of government.”

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Last month, there were 6,374 detached, attached and apartment homes for sale on the MLS in Metro Vancouver, up 12.6 per cent from the 5,661 homes listed in May 2023 and up seven per cent from the 10-year seasonal average.

In total, there are currently 13,600 properties for sale, 46.3 percent more than May 2023 and 19.9 percent above the 10-year seasonal average. The ratio of sales to active listings for May is 20.8 percent for all property types.

“With market trends now returning to more balanced conditions, as new listings outpace sales, we can expect slower price growth in the coming months,” Lis notes. “Until recently, prices rose modestly in all market segments. But with rising inventory levels and declining demand, buyers who have been waiting for an opportunity may have better luck this summer, even if borrowing costs remain high.”

Prices

The MLS Home Price Index composite benchmark price for all homes in Metro Vancouver is $1,212,000, up 2.3 percent from May 2023 and up 0.5 percent from April 2024.

Currently, the reference price of a detached house is $2,062,600, an apartment $776,200 and a townhouse $1,145,600.

View the full report here.