Westside detached home sales and listing activity in February continues to trend below the long term averages.
Compared to the 10 year average, the westside supply was down 17% for detached homes, up 7% for apartments and up11% for townhomes.
Compared to the 10 year average, the westside demand was down 42% for detached homes, 42% for apartments and 15% for townhomes.
Median home prices in February are down 12.1% for detached homes (from the peak Oct.2017), 10.6% for apartments (peak Jan.2018) and 13.9% (peak Feb.2022) for attached homes.
The Real Estate Board of Greater Vancouver (REBGV) says that residential property sales in the region decreased 47.2% to 1,808 in Feb. from 3424 sales in Feb. 2022. This is a 76.9% increase from the 1022 homes sold in Jan. 2023 and down 33% from the 10 year Feb. sales average.
The total number of properties currently offered on the MLS® system in Metro Vancouver is 7868, up 16.7% compared to 6742 in Feb. 2022 and up 5.2% from 7,478 last month.
The Real Estate Board of Greater Vancouver (REBGV) reported that the benchmark price for all residential properties in Metro Vancouver is $1,123,400 which is a 9.3% decrease from Feb. 2022, and a 1.1% increase from last month.
“While we continue to expect home price trends to show year-over-year declines for a few more months, current data and market activity suggest pricing is firming up. In fact, some leading indicators suggest we may see modest price increases this spring, particularly if sales activity increases and mortgage rates hold steady,” said Andrew Lis, REBGV’s director of economics and data analytics.
In the somewhat unusual market environment we find ourselves in right now with higher mortgage rates and fewer sales, inventory is inching higher but remains far from abundant.
Rates went up by only half a point in January so it will be interesting to see if buyers and sellers have adjusted to the higher borrowing costs and will participating more actively in the market than we have seen over the last 12 months.
Rates only started to increase in April 2022 and we have not seen a full year of their effect on the market. As those mortgage renewals come up and new borrowers have to qualify at the new higher rates, we will see how that effects our market and prices.
The consensus among many economists and forecasters is that the Bank of Canada is at or near the peak of interest rate increases which inclines many sellers to hold on until demand built on factors like population growth can start to push up prices again.
The current reluctance among sellers to list their homes is leading to below average sales activity and is allowing supply to increase which may ease upward pressure on prices.
We welcome Spring this month! 🌷🌞🐣
Stay safe and healthy.