In July, the sales and listings activity for detached homes on the Westside remained below the long-term averages. Compared to the 10-year average, the supply of detached homes decreased by 15%, while apartments increased by 10%, and townhomes increased by 15%.
Similarly, the demand for properties on the Westside also saw a decline when compared to the 10-year average. The demand for detached homes decreased by 24%, apartments decreased by 15%, and townhomes decreased by 22%.
As for the median home prices, there have been declines across all property types. In July, detached home prices were down by 8% from their peak in October 2017. Apartment prices decreased by 2.5% from their peak in January 2018, and attached home prices declined by 5.9% from their peak in February 2022.
In July, residential property sales in the Greater Vancouver region showed a significant increase of 28.9%, reaching 2,455 sales compared to 1,904 sales in July 2022. However, this is still 15.6% below the 10-year July sales average.
The benchmark price for all residential properties in Metro Vancouver rose by 0.5% from July 2022, reaching $1,210,700, and showing a 0.6% increase from the previous month.
The number of properties currently available for sale on the MLS system in Metro Vancouver decreased by 4% compared to July 2022, with a total of 10,301 listings. This figure is 14.4% below the 10-year seasonal average of 12,039 listings.
The slight increases in supply and prices compared to last year are partly due to the poor market conditions at that time when the Bank of Canada announced a large 1% rate increase, which had a cooling effect on the market. Despite these incremental improvements, the current market is still below the 10-year averages.
Presently, there are the highest interest rates in 10 years. However, the low inventory levels are creating competitive conditions, leading to price increases as demand remains higher than supply. Andrew Lis, REBGV's director of economics and data analytics, suggests that below-average sales volume and slow listing activity indicate that some sellers are waiting for more favorable market conditions, even though prices have already risen approximately 6%, surpassing the projected 2% increase for the year-end.
The continued increase in prices can be attributed to a higher number of buyers compared to sellers in the market, which has kept the supply of resale homes relatively low. Although sales activity typically peaks in April, this year saw increased activity in May, approaching historical averages, despite mortgage rates and slow listing activity.
As expected, sales declined in June and July due to the summer season and the impact of the interest rate increase, leading to a slowdown in the market. With more than a year since the rates began to rise, some sellers are now facing mortgage renewals and increased mortgage payments, prompting them to sell their homes.
Have a great rest of the summer! ☀️🌊🍉🌴⛱️🍦
Stay safe and healthy.