REBGV Market Update For August 2022– Sales Have Plunged From The Frenzied Activity A Year Ago
In the August 2022 market report released by the Real Estate Board of Greater Vancouver (REBGV), the main takeaways were reduced sales, decreasing prices and a slowdown in listing activity.
The supply of homes for sale in the market has steadily declined since June.
According to Andrew Lis, REBGV director of economics and data analytics, “With inflationary pressure and interest rates on the rise, home buyer and seller activity shifted below our long-term seasonal averages this summer. This shift in market conditions caused prices to edge down over the past four months.” He further added that, “Home buyers and sellers are taking more time to assess what this changing landscape means for their housing needs. Preparation is critical in today’s market.”
There were 1,870 residential property sales registered in August 2022 for the region. The same period last year registered 3,152 sales (a 40.7% decrease) and July 2022 registered 1,887 sales (a 0.9% decrease).
– The number of detached properties sold was 517, a 45.3% decrease from the 945 homes sold in August 2021.
– The number of apartments sold was 998, a 38.8% decrease from the 1,631 apartments sold in August 2021.
– The number of attached properties sold was 355, a 38.4% decrease from the 576 sales in August 2021.
In August, there were 3,328 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS®) in Metro Vancouver.
This was a 17.5% decrease compared to the 4,032 homes listed in August 2021, and a 16% decrease compared to July 2022 when 3,960 homes were listed.
The total number of homes listed for sale on the MLS® system in Metro Vancouver was 9,662, a 7.3% increase compared to August 2021 (9005) and a 6.1 % decrease compared to July 2022 (10,288).
This ratio gives a better understanding of the relationship between supply and demand in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for sustained periods.
For all property types, the ratio in August was 19.4%. When broken down by property types, the ratio was:
- 12.2 % for detached homes.
- 25.3 % for townhomes.
- 24.8 % for condominiums.
In August, the MLS® Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,180,500. This was 7.4% higher than August 2021 and a 2.3% decrease compared to July 2022.
The slowdown in sales over the past four months has seen prices move down somewhat.
Click here for a full report.
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