REBGV Market Update For November 2022 – Cooling Trend Persists And Sales Continue To Drop
The November 2022 market report released by the Real Estate Board of Greater Vancouver (REBGV) revealed that the typical slow conditions apparent in November, lagged even more.
Last month’s sales were a staggering 36.9% below the 10 year November sales average.
Andrew Lis, the REGBV Director, economics and data analytics said “With the most recent core inflation metrics showing a stubborn reluctance to respond significantly to the furious pace of rate increases, the Bank of Canada may choose to act more forcefully to bring inflation back towards target levels While it is always difficult to predict what the bank will do with certainty, this persistent inflationary backdrop sets up the December 7 rate announcement to be yet another rate increase, making holiday-season purchases something people may end up forgoing this year.”
With such uncertain conditions, persistent inflation and further interest rate hikes expected, many people may forego any home purchases over the holiday season.
In November, residential homes sales in the region totalled 1,614 units. This was a 52.9% decrease from the 3,428 sales recorded in November 2021, and 15.2% less than the 1,903 homes sold in October 2022.
- The number of detached properties sold was 486, a 50.8% decrease compared to the 987 detached sales recorded in November 2021.
- The number of apartments sold was 847, a 53.7% decrease compared to the 1,828 units sold in November 2021.
- The number of attached properties sold was 281, a 54.2% decrease compared to the 613 sales in November 2021.
There were 3,055 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS®) in Metro Vancouver.
This represented a 22.9% decrease compared to the 3,964 homes listed in November 2022 and a 24.2% decrease compared to October 2022 when 4,033 homes were listed.
The total number of homes listed for sale on the MLS® system in Metro Vancouver was 9179, a 28.5% increase when compared to November 2021 (7,144) and a 6.8% decrease when compared to October 2022 (9,852).
This is a good indication of the supply and demand forces 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 November 2022 was 17.6%. When broken down by property types, the ratio was:
- 13.2 % for detached homes.
- 19.7 % for townhomes.
- 20.8 % for condominiums
In November, the MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,131,600. This represented a 0.6% decrease over November 2021, a 10.2% decrease over the last 6 months and a 1.5% decrease compared to October 2022.
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