REBGV Market Update For December 2022 – Home Prices & Sales Continue Their Fall
The December 2022 market report released by the Real Estate Board of Greater Vancouver (REBGV) made it very clear that a lot less people have been motivated to either list or purchase a property. The sluggish pace can be attributed to the rapid succession of interest rate hikes. The current rate of 4.25% is the highest since January 2008.
In his end of year comments about the Greater Vancouver real estate market, Andrew Lis, REGBC Director, economics and data analytics said, “The headline story in our market in 2022 was all about inflation and the Bank of Canada’s efforts to bring back inflation back to target by rapidly raising the policy rate. This is a story we expect to continue to make headlines into 2023, as inflationary pressures remain persistent across Canada.”
In December 2022, there were 1,295 residential property sales. This represented a 51.8% decrease from the 2,688 sales in December 2021 and a decrease of 19.8% from November 2022 when 1,614 homes were sold.
The number of detached properties sold was 371, 53.3% less than December 2021.
The number of apartments sold was 702, 52% less than December 2021.
The number of attached properties sold was 222, 48.4% less than December 2021.
In 2022, home listings on the Multiple Listing Service (MLS) reached 53,865 in Metro Vancouver. This represented a 13.5% decrease compared to the 62,265 homes listed in 2021, and a 0.8% decrease compared to the 54,305 homes listed in 2020.
The total number of homes listed for sale in December was 7,384. This was a 41% increase compared to December 2021 (5,236) and a 19.6% decrease compared to November 2022 (9,179).
This is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio is below 12% for a sustained period, and there is upward pressure when the ratio is above 20% for a number of months.
For all property types, the ratio in December was 17.5%.
When broken down by property types, the ratio was:
- 12.3 % for detached homes
- 19.5 % for townhomes
- 21.7 % for condos
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,114,300 in December. This was down 3.3% when compared to December 2021, a 1.5% decrease compared to November 2022, and a 9.8% decrease over the past 6 months.
When broken down by property types:
- Detached home price – $1,823,300. This was a 5.1% decrease when compared to December 2021, a 1.8% decrease when compared to November 2022, and a 11.4% decrease over the past 6 months.
- Condo price – $713,700. This was a 1.7% increase when compared to December 2021, a 0.9% decrease when compared to November 2022 and a 6.9% decrease over the past 6 months.
- Attached home price – $1,012,700. This was a 0.2% decrease when compared to December 2022, a 1.5% decrease when compared to November 2021, and a 9.2% decrease over the past 6 months.
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