Buyers continue to back off following rising rates as total Vancouver home sales fall 43.3%, compared to July 2021. The shifting pace of the market has introduced a more cautious attitude for buyers, as well as more available homes to choose from, creating far reduced urgency than seen the same time last year. Last month 1,887 sales were recorded for Metro Vancouver – 35.2% below the 10-year July sales average, and a 22.8% decrease from the 2,444 homes sold in June 2022.
“After two years of market conditions that favoured home sellers, home buyers now have more selection to choose from and more time to make their decision. In today’s changing housing market, both home buyers and sellers should invest the time to understand what these changes mean for their personal circumstances.”
Daniel John Real Estate Board of Greater Vancouver
The REBGV cites current conditions as the beginning of a new cycle, as home buyer demand lessens and the number of homes for sale gradually rise. The total number of homes currently listed for sale on MLS is 10,288 – a 4.4% increase compared to 9,850 in July 2021, but a 1.3% decrease compared to 10,425 listings in June 2022. 3,960 detached, attached and apartment properties newly listed for sale on MLS in July 2022 – a 9.5% decrease compared to the 4,377 homes listed in July 2021 and a 24.7% decrease compared to June 2022 when 5,256 homes were listed.
Dip In Demand For Detached Homes
Year over year, sales were expectedly down across all home types. Detached & attached sales experienced the largest declines of 50.2%, while condo sales fell by 36.4%. This same time last year, the sales to active ratio for detached properties was 25.5%, or about 25 in every 100 homes selling. For July 2022, this ratio fell to 11%.
Despite the plunge in sales, benchmark prices remained relatively stable and well above average prices recorded for July 2021. The benchmark price for a Vancouver home dipped 2.2% to $1,207,400, but is still 10.3% higher than the same time last year. Year-over-year, detached home prices were 11% higher, while townhomes were up 15.8%; and condos up 11.4%. But compared to June 2022, prices across all home types have edged down. Detached decreased 2.8% from June, while townhomes and condos experienced a 1.7% and 1.5% reductio respectively.
What Do “Balanced Market Conditions” Mean For Buyers & Sellers?
Buyer demand in today’s market poses a strong contrast to the same time last year. Sales activity is steadily slowing, confirming that interest rate hikes are pushing many prospective buyers to the sidelines. Though buyer activity seems to be pulling back, those looking to “wait and see” should be careful not to wait too long, or it might end up costing them. Housing inventory has a ways to climb before a true balanced market is reached, and the Bank of Canada warns more rate hikes are far from off the table. Through the first half of 2022, homeowners with variable mortgages have seen their payments get more costly by the month, which may have you thinking – is selling an option for me? Understanding the potential value of your home is a crucial first step, as well as mapping out your specific needs, goals and the right timeline. It’s always best to do the research first – reach out for a complimentary analysis of market activity in your area.