Local market conditions in Vancouver remain unusual, with many prospective home sellers still sitting on the sidelines and sales activity significantly below the historical average. According to the Real Estate Board of Greater Vancouver (REBGV), there were 1,808 home sales in February 2023, down 47.2% from February 2022 and 33% below the 10-year February sales average.
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Some Month-over-Month Price Gains for More Affordable Property Types
Home prices saw slight month-over-month increases, though still down from February 2022. Currently at $1,123,400, the benchmark price for all residential properties rose modestly by 1.1% from last month. The largest increases could be seen in more affordable property types, with attached home prices up 1.8% at $1,038,500, and apartments up 1.6% at $732,200. Detached homes followed with just a 0.7% increase compared to January 2023, reaching a benchmark price of $1,813,100.
Despite a year-over-year decline in sales, there was still a 76.9% increase in home sales from January 2023. The increase could be seen across property types, with townhouse sales rising substantially by 128.2%, from 156 in January 2023 to 366 in February 2023. Detached and apartment sales similarly rose, by 74.2% and 62.5% respectively. However, the lack of new listings leaves the market’s sales conditions less than ideal.
New Listings Among the Lowest in Recent History
February saw 3,467 new listings, a slight increase compared with January 2023 when 3,297 homes were listed. When compared with February 2022 however, which had 5,048 homes newly listed, activity remains low and translates to a year-over-year decline of 36.6%. As the housing supply is still far from abundant, sales activity is pushed down.
This could result in a more balanced market, as REBGV’s director, economics and data analytics Andrew Lis indicates. “On the plus side for prospective buyers, the below-average sales activity is allowing inventory to accumulate, which is keeping market conditions from straying too deeply into sellers’ market territory, particularly in the more affordably priced segments.” In the coming months, expect prices to show a year-over-year decline, however with the spring market just around the corner we may see modest price increases. Continued sales activity and steady mortgage rates will play a factor on future market conditions.
The next Bank of Canada mortgage announcement is scheduled for March 8, 2023. If you’re considering buying, selling, or both in the Greater Vancouver area, give us a call today to speak to a local agent today.
