The latest data from February indicates that potential home sellers in Metro Vancouver are still hesitant to participate in the housing market, leading to lower-than-average sales activity. This has resulted in an increase in the number of available homes for sale in the region.
According to the Real Estate Board of Greater Vancouver (REBGV), residential home sales in February 2023 were 47.2% lower than the same month in 2022, with 1,808 homes sold. This is also a 76.9% increase from January 2023, where only 1,022 homes were sold. Last month’s sales were 33% below the 10-year February sales average.
Andrew Lis, the director of economics and data analytics at REBGV, stated that the low number of new listings has made it difficult for sales to reach typical levels at this time of year. However, the reduced sales activity has allowed inventory to accumulate, which has kept the market from becoming too heavily weighted in favor of sellers, especially in the more affordable segments.
In February 2023, 3,467 detached, attached, and apartment properties were newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver. This represents a 36.6% decrease from the 5,471 homes listed in February 2022 and a 5.2% increase from January 2023, where only 3,297 homes were listed.
Currently, there are 7,868 homes listed for sale on the MLS® system in Metro Vancouver, which is a 16.7% increase compared to February 2022 and a 5.2% increase compared to January 2023.
Lis predicts that home prices will continue to show year-over-year declines for a few more months. However, current data and market activity suggest pricing is firming up, and we may see modest price increases this spring, particularly if sales activity increases, and mortgage rates hold steady. Lis also emphasized the importance of working with a Realtor who understands local market conditions and has experience navigating challenging markets.
The sales-to-active listings ratio for February 2023 is 23%, indicating a balanced market. The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,123,400, which is a 9.3% decrease over February 2022 and a 1.1% increase compared to January 2023.
In February 2023, sales of detached homes reached 514, a 49.1% decrease from February 2022, and the benchmark price for detached properties is $1,813,100. Sales of apartment homes reached 928, a 49.9% decrease compared to February 2022, and the benchmark price of an apartment property is $732,200. Attached home sales in February 2023 totaled 366, a 34.6% decrease compared to February 2022, and the benchmark price of an attached unit is $1,038,500.