The sales-to-listing ratio for detached-house sales In Metro Vancouver fell below the psychological 12 per cent level in July for the first time in at least two years.
“Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months,” the Real Estate of Greater Vancouver (REBGV) noted in releasing its July 2022 market data.
In July, the sales ratio for detached houses fell to 11.8 per cent. It was 20 per cent for townhomes and 24.5 per cent for condominium apartments, according to the REBGV.
“Metro Vancouver’s housing market has entered a new cycle marked by quieter home buyer demand and a gradual rise in the supply of homes for sale,” the board stated.
Housing sales in the region totalled 1,887 in July 2022, a 43.3 per cent decrease from the 3,326 sales recorded in July 2021, and a 22.8 per cent decrease from the 2,444 homes sold in June 2022.
Last month’s sales were 35.2 per cent below the 10-year July sales average.
“Home buyers are exercising more caution in today’s market in response to rising interest rates and inflationary concerns,” said Daniel John, REBGV chairman. “This allowed the selection of homes for sale to increase and prices to edge down in the region over the last three months.”
There were 3,960 total new listings Greater Vancouver in July 2022. This represents a 9.5 per cent decrease compared to July 2021 and a 24.7 per cent decrease compared to June 2022 when 5,256 homes were listed.
The total number of homes currently listed for sale on the multiple listing service in Metro is 10,288, up 4.4 per cent compared to July 2021 but down 1.3 per cent from June of this year.
“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,” John said.
The composite benchmark price for all residential properties in Metro Vancouver is currently $1,207,400, down 2.3 per cent from a month earlier but about 10 per cent higher than in June 2021.
Sales of detached homes in July 2022 reached 523 transactions, down a 50.2 per cent from July 2021. The benchmark price for a detached home is $2,000,600. This represents an 11 per cent increase from July 2021 and a 2.8 per cent decrease compared to June 2022.
Sales of condo apartments reached 1,060 in July 2022, a 36.4 per cent decrease compared to July 2021. The benchmark price of a condo apartment is $755,000, an 11.4 per cent increase from July 2021 and a 1.5 per cent decrease compared to June 2022.
Attached home sales – normally townhomes - in July totalled 304, a 50.2 per cent decrease compared to the 610 sales in July 2021. The benchmark price of a townhome is $1,096,500. This represents a 15.8 per cent increase from July 2021 but a 1.7 per cent decrease compared to June 2022.