"Over the last two months, we’ve seen home sales ease down from the record-breaking pace of the last year. While still a small sample size, the return to a more traditional pace of home sales that we’ve experienced so far this spring provides hopeful home buyers more time to make decisions, secure financing and perform other due diligence such as home inspections." – Daniel John, Real Estate Board of Greater Vancouver, Chair
There were 6,107 newly listed homes on the MLS combined (Attached, Detached and Apartment) in Metro Vancouver in April 2022. This is a 23.1% decrease from April of last year and an 8.5% decrease from March of this year.
Currently there are a total of 8,796 homes listed on the MLS system. This is a 14.1% decrease from April of last year and a 15.3% increase from March of this year.
“With interest rates climbing and the total inventory of homes for sale inching higher each month, it’s important to work with your local Realtor to understand how these factors could affect your home buying or selling situation.” – Daniel John
The Sales-to-active listings ratio is currently at 36.7% (combined Detached, Attached & Apartments) for April 2022. The break down by property type is as follows:
Detached: 25.3%
Attached: 47.1%
Apartments: 45%
Analysts generally state that downward pressure on home prices occurs when the sales-to-active ratio moves below 12% for a sustained period, while prices of homes will often have upward pressure when it surpasses 20% over a sustained period.
Currently the benchmark price for all homes combined in Metro Vancouver sits at $1,374,500. This represents a modest 1.0% increase from March of this year and an 18.9% increase from April of last year.
The total number of detached homes sold in April 2022 was 962. This is a 41.9% decrease from April of last year. The benchmark price for detached homes reached a total of $2,139,200. This is a 1.0% increase from March 2022 and a 20.8% increase from April of 2021.
Attached sales reached a total of 578 in April of 2022; which is a 40% decrease from April of last year. $1,150,500 is the benchmark price for an attached home. This is a 25% increase from April last year and a 1.1% increase from March 2022.
The total number of sales of apartments in April 2022 reached 1,692. This is a 26.1% decrease from the total sales attained in April 2021. The benchmark price for apartments reached $844,700; which is a 16% increase from April of last year and a 1.1% increase from that of March 2022.
The Takeaway:
There is a shift in the market and it seems to be causing a cooling effect. This is caused by multiple sources such as (but not limited to):
Raised interest rates – Lowering buying power, for which sellers will have to adjust to.
More homes on the market – More selection for potential purchasers, as well as less competition for the ones that are on the market.
Buyer Exhaustion – This has been a hectic past 2 years and really hard on buyers. Some have just decided to take a break and see what happens… Although if prices continue to cool they may be back in force come fall.
Traditional Market ebb & flow – Traditionally the market slows in the summer months as kids are out of school, people are thinking of holidays, buyers, sellers, realtors all start thinking about being outside in the sun more than real estate. We will likely see this even more this year as with Covid restrictions lifting for travel there is pent up demand for it.
While this may all add up to a cooling effect (we are working with a short time sample here) this will NOT be the fire and brimstone “bubble” pop that some people have been waiting for and claiming will happen since
Expo Ernie was the most popular guy in Vancouver.Those that are looking to purchase; your window might be opening as the market will likely slow down over the summer months & there might be some deals to be had. This will also bring along being able to enjoy some negotiation and having time to do the due diligence on a purchase, such as inspections; which many were foregoing during the breakneck pace that has been the past 2+ years.
Real estate is not a broad brush thing… If you would like a more targeted analysis for your particular area or needs, please feel free to contact me via phone at 604-522-4777 or e-mail directly at: haze@hazerealty.com or join us at our Facebook Page (www.facebook.com/HazeRealty)
(Source: http://members.rebgv.org/news/REBGV-Stats-Pkg-April-2022.pdf)