Prices have changed 2% since mortgage rate increases in Metro Vancouver
The not so Short, yet Easy summary
The doom and gloom of an avalanche in property value has yet come to fruition as headlines have attempted to predict. However, total sales in Metro Vancouver decreased by 35.5% from the same time last year (June'21) and 16% from May'22 tallies a month ago. Interest rates continue to be the talk around 'everything' real estate. The headlines we read are sensational in their intention, at the sacrifice of accuracy & reality, and is misleading. Total sales of all residential sales are down 23% from the June 10-year average. Its been a ROBUST 10-year run in Vancouver, so its a very high bar that has been set.
Inventory levels decreased by 3.1% compared to June'21 and a saw a 4.1% increase from May'22.
Summary: In the last 30 days; sales are down 16%, inventory is up 4.1%. We are in Buyer friendly territory.
Sales to Active ratio for all property types is 23.4% = Seller's Market. Yes, still a Seller's market. 20% is where we see a balanced marketplace, so we are very close.
DETACHED SINGLE FAMILY - Greater Vancouver
1) Sales of detached homes in June'22 reached 653, compared to 793 sales recorded in May'22 (18% decrease) and a 44% decrease from June'21 (1,419).
2) Sales-to-Active ratio - 14.3%. Compared to: May(18.3), April(25.3%), March(38.8%). 20%+ is a Sellers Market. BALANCED MARKET PLACE
3) Pricing - HPI -$2.093M. 1-year change; up 15%.
TOWNHOUSES - Greater Vancouver
1) Sales totaled 520, a 21% decrease compared to the 800
sales in May'21.
2) Sales-to-Active ratio 31.5% compared to: May(35.5%),April(47.1%), March(73.3%). 20% is a Sellers Market. 1.5x Sellers Market.
3) Pricing - HPI - $1.141M. 1-year change: HPI up 21.5%.
CONDOS - Greater Vancouver
1) Sales of condo homes reached 1,605 in June'22, a 35% decrease compared to the 800 sales in June'21.
2) Sales-to-Active ratio 30.2% compared to: May(38.1%), April(45%), March(70.3%). 20% + is a Sellers Market. 1.5x Seller's Market still
3) Pricing - HPI $779,700. 1-year Change - HPI up 15%.
- June'22 sales were 23.3% below the June 10-year average.
- 5,256 newly listed homes for sale is 10.1% decrease from June'21.
- Total Active listings is 10,425; 3.8% decrease from June'21.
- Sales-to-Active ratio for the property types: 23.2% (all properties combined) is the lowest since August'20
- The MLS Home Price Index $1.235M(all properties) rose 12.4% from June'21.
- REBGV Sourced Summary
REFERENCE explanation: listing-to-sales ratio.
Arguably the MOST important stat considering Inventory & Sales combined is the listing-to-sales ratio. Our benchmarks are 12 and 20. When the ratio goes below 12, for continuous months, we are generally in a Buyer's market where prices can come down. When the ratio rises above 20 for continuous months, we are in a Seller's market where prices can rise.
Now that you have decided you want to get involved in a real estate purchase, what do you do first?
If you are planning to buy... get started ASAP. Have your financing in place and be ready to pounce when the opportunity presents itself - Interest rates are rising!
Know your listing/sales ratios as a Buyer. Detached single family ratios are now at the lowest of a balanced market near to a Buyer market level. This is the best time for a Detached purchase.
If you are thinking of selling in 2022, reach out to me, and lets talk about TECHNOLOGY, INVENTORY and TIMING!