Greater Vancouver real estate may be out of the gutter – for now at least. Real Estate Board of Greater Vancouver (REBGV) data shows sales made a big improvement in January. Real estate sales volumes haven’t returned to typical levels, but a drop in inventory led to a better balance. Prices are now only down slightly from last year.
Greater Vancouver Real Estate Prices Are Down Less Than 2%
Greater Vancouver real estate prices are starting to show signs of stabilization. REBGV reported the price of a typical home reached $1,008,700 in January, down 1.2% from last year. In the City, Vancouver East reached a benchmark of $1,074,300, up 0.7% from last year. Vancouver West’s composite benchmark hit $1,255,900, down 1.5% from last year. If you missed that, Vancouver East is back to printing broad market positives.
Greater Vancouver Composite Benchmark Price
The price of a typical home across Greater Vancouver, in Canadian dollars.
Source: REBGV, Better Dwelling.
The rate of growth is still negative for Metro Vancouver, but it’s showing improvement. The 12-month rate of decline is now the smallest since November 2018 – over a year ago. Over the past six months, prices have increased 1.4%. They’re still down from the peak, but a better balance of sales and inventory is helping the market find its footing.
Greater Vancouver Composite Benchmark Price Change
The annual percent change of a typical home across Greater Vancouver.
Source: REBGV, Better Dwelling.
Vancouver Real Estate Sales Rise, But Are Lower Than Typical
Greater Vancouver real estate sales ripped higher, but fell short of typical volumes. REBGV reported 1,571 sales in January, down 22.1% from the month before. This represents an increase of 42.4% compared to the same month last year. The monthly decline is seasonal, and the annual decline seems very high due to last year’s very low volume. Compared to the 10-year average for the month of January, sales are actually 7.3% lower. Better than last year, but not quite a full recovery.
Vancouver Real Estate Inventory Is Down – Even For Typical Levels
Fewer people are listing their home for sale in Greater Vancouver, compared to last year. There were 3,872 new listings in January, down 143.8% compared to a month before. This represents a 20.1% decrease compared to last year. The monthly decline is somewhat typical, but the annual decline is a big drop.
Greater Vancouver Composite Sales Vs. Listings
The number of homes sold vs total inventory in Greater Vancouver.
Source: REBGV, Better Dwelling.
More sales and fewer new listings dropped total inventory for the market. REBGV reported 8,617 active listings in January, up 0.2% from a month before. This represents a 20.3% increase compared to the same month last year. The market is now 13.7 percent lower than the 10-year average for the month of January. Inventory for this market is much tighter than last year.
Tighter than last year isn’t necessarily too tight though, since things are balanced. At least according to the sales to active listings ratio (SALR), which reached 18.2% in January. For context, the SALR during this time last year was only 10.2%. Generally, prices are expected to rise above 20%. Prices usually fall when the SALR falls below 12%. Between 12 and 20%, the market is considered balanced. Currently the market is balanced, and the benchmark isn’t too far off from the expected move.
The Greater Vancouver real estate market is seeing more sales, and fewer listings. These aren’t extreme numbers in either direction, like Toronto is seeing. Prices are still significantly below the peak made a few years ago. However, the improved demand ratio has made prices much more stable for now.
Like this post? Like us on Facebook for the next one in your feed.
