Metro Vancouver’s housing market is witnessing a continued surge in home prices as the summer season commences. The limited availability of homes for sale in the region is causing a clash with the high demand from prospective buyers, leading to further price hikes.
According to the Real Estate Board of Greater Vancouver (REBGV), residential home sales in June 2023 reached 2,988, indicating a significant 21.1 percent increase compared to June 2022’s 2,467 sales. However, despite this growth, the figure fell short by 8.6 percent of the ten-year seasonal average of 3,269.
Andrew Lis, the director of economics and data analytics at REBGV, noted that the market has exceeded expectations in all segments, with apartments exhibiting the strongest performance in June. Lis stated that the benchmark price of apartment homes is nearly reaching the peak recorded in 2022, and apartment sales have surpassed the region’s ten-year seasonal average. In contrast, sales of attached and detached homes remained below the seasonal averages.
In June 2023, there were 5,348 newly listed detached, attached, and apartment properties for sale in Metro Vancouver, reflecting a slight 1.3 percent increase compared to June 2022’s 5,278 listings. However, this number fell 3.1 percent short of the ten-year seasonal average of 5,518.
Currently, there are 9,990 homes listed for sale on the Multiple Listing Service® (MLS®) system in Metro Vancouver, indicating a 7.9 percent decrease compared to June 2022’s 10,842 listings. This figure is 17.4 percent lower than the ten-year seasonal average of 12,091.
The sales-to-active listings ratio for June 2023 stands at 31.4 percent for all property types, while the ratio is 20.9 percent for detached homes, 38.5 percent for townhomes, and 39.4 percent for apartments. Historical data suggests that when the ratio remains below 12 percent for a sustained period, home prices tend to experience downward pressure, while a ratio surpassing 20 percent for several months often leads to upward pressure on prices.
Andrew Lis highlighted that despite higher borrowing costs, the lack of resale inventory relative to the pool of buyers in Metro Vancouver continues to drive prices up across all segments. Lis called upon the provincial government to adjust the Property Transfer Tax’s threshold, which exempts first-time home buyers, to better align with the price of entry-level homes in the region. Such a policy adjustment could enable more first-time buyers to afford a home.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver currently stands at $1,203,000. This represents a 2.4 percent decrease from June 2022 but a 1.3 percent increase compared to May 2023.
Sales of detached homes in June 2023 amounted to 848, reflecting a substantial 28.3 percent increase compared to the 661 sales recorded in June 2022. The benchmark price for a detached home is $1,991,300, representing a 3.2 percent decrease from June 2022 but a 1.9 percent increase compared to May 2023.
Apartment home sales reached 1,573 in June 2023, marking an 18.6 percent increase compared to the 1,326 sales in June 2022. The benchmark price for an apartment home is $767,000, indicating a 0.5 percent increase from June 2022 and a 0.8 percent increase compared to May 2023.
Sales of attached homes in June 2023 totaled 547, signifying a 17.6 percent increase compared to the 465 sales in June 2022. The benchmark price of an attached home is $1,098,900, representing a one percent decrease from June 2022 but a 1.5 percent increase compared to May 2023.