Metro Vancouver sees decrease in home sales and increase in inventory: GVR

According to Greater Vancouver Realtors (GVR), residential sales in the region totaled 2,733 in May, which is a decrease of nearly 20% from the 3,411 sales in May of last year. Last month’s sales were also down 19.6% from the 10-year seasonal average for May.

Andrew Lis, GVR’s director of economics and data analytics, stated, “The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data.”

Lis further explained, “It’s a natural inclination to chalk these trends up to one factor or another, but what we’re seeing is a culmination of factors influencing buyer and seller decisions in the market right now. It’s everything from higher borrowing costs to worries about the economy, to policy interventions imposed by various levels of government.”

More inventory on offer

There were 6,374 detached, attached, and apartment properties newly listed for sale on the MLS in Metro Vancouver last month, which is 12.6% more than the 5,661 properties listed in May 2023 and 7% more than the 10-year seasonal average.

Currently, there are 13,600 properties listed for sale, which is 46.3% more than May 2023 and 19.9% above the 10-year seasonal average. The sales-to-active listings ratio for May is 20.8% across all property types.

Lis predicts, “With market trends now tilting back toward more balanced conditions, as the number of new listings outpaces the number of sales, we should expect to see slower price growth over the coming months.”

Prices

The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1,212,000, a 2.3% increase over May 2023 and a 0.5% increase from April 2024.

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

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