REBGV Market Update For September 2022 – More Home Sellers Than Buyers
The September 2022 report released by the Real Estate Board of Greater Vancouver (REBGV) indicated that more supply than demand and increasing interest rates are pushing Metro Vancouver prices down even further.
“With the Bank of Canada and other central banks around the globe hiking rates in an effort to stamp out inflation, the cost to borrow funds has risen substantially over a short period. This has resulted in a more challenging environment for borrowers looking to purchase a home, and home sales across the region have dropped accordingly.” Andrew Lis, REBGV director, economics and data analytics
In September 2022, there were 1,687 residential home sales in the region, reflecting a 46.4% decrease from the 3,149 sales recorded in September 2021.
Sales of detached homes reached 525, which represented a 44.7% decrease from the 950 detached home sales in September 2021.
Sales of apartment homes reached 888, which represented a 45.2% decrease compared to the 1,621 apartment home sales in September 2021.
Sales of attached homes reached 274, and this represented a 52.6% decrease compared to the 578 sales in September 2021.
|Property Type||Sept 2022 sales||Sept 2021 sales||% +/-|
The number of newly homes listed for sale on the MLS in Metro Vancouver was 4,229 for September 2022. This represented an 18.2% decrease compared to the 5,171 homes listed in September 2021 and a 27.1% increase when compared to the 3,328 homes listed in August 2022.
The total number of listings for September 2022 on the MLS was 9,971 – an 8% increase when compared to September 2021 – 9,236, and a 3.2% increase when compared to 9,662 listings in August 2022.
“With fewer homes selling and new listings continuing to come to market, inventory is beginning to accumulate, providing buyers with more selection compared to last year, “ Lis said. “With more supply and less demand within this market cycle, residential home prices have edged down in the region over the last six months.”
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 for September was 27.8%. When broken down by property types, the ratio was:
- 12.4% for detached homes
- 18.4% for townhomes
- 20.9% for condos
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver for September was $1,155,300. This represents a 3.9% increase over September 2021, an 8.5% decline over the past 6 months, and a 2.1% decline when compared to August 2022.
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The real estate market is in transition. This means you have more time and selection to make your decision. Declining prices support prospective buyers, so contact us by email or call us on 604 913 1000, if you are planning on getting into this buyer’s market.