Vancouver is currently in the midst of a massive supply shortage, with inventory 22.3% below the ten-year seasonal average. Regional home sales are also down by 28.4% over similar long-term historical averages despite the month-over-month improvement.
As we move into the spring market, we analyzed market competition across the Vancouver region by comparing sales and new listing data for March. This data was then used to determine the sales-to-new-listings ratio (SNLR) for the month, calculated by dividing the total sales by the number of new listings in each region. The SNLR is used to effectively show the level of demand and supply in each area, and help identify how much competition local buyers face with regard to supply. The SNLR can be broken down into three percentage parameters:
- An SNLR under 40% suggests a buyer’s market: where new listings outweigh and buyers have more options
- An SNLR between 40% and 60% is a balanced market: where demand and supply are balanced
- An SNLR over 60% means a seller’s market: where demand outpaces supply, benefiting sellers
No Luck for Buyers
Buyers are in a bit of a bind at the moment, since many Vancouver region markets analyzed in this report are favouring sellers. Every market is either balanced or in favour of the seller. Port Moody and Richmond currently have the highest SNLR at 72%, while Coquitlam, New Westminster, North Vancouver, Squamish and Vancouver East are the other markets currently where sellers are feeling the benefits.
Buyers likely aren’t having much luck in these markets because of the lack of available inventory in Vancouver and the growing demand as the spring market gets into full swing. Additionally, prices will likely continue to climb, as fewer homes mean fewer choices and competition for the available properties increases. Every market we looked at, with the exception of West Vancouver, has increased in price in the last month, with Squamish increasing the most by 3.7% to $1,056,800.
The Market Has Still Softened From Last Year
Conditions are slightly different from last year when every market was firmly in favour of the seller. The Sunshine Coast has experienced the steepest year-over-year decline, dropping 51% from an SNLR of 95% to the lower end of the balanced market at 44%. Every other market has declined with the exception of Richmond, where the SNLR has actually increased by 10%. This is likely in part due to the limited options available – listings have fallen by 46% year-over-year with just 474 homes put up for sale last month. Prices are also down a lot on a yearly basis. Notably, Pitt Meadows has fallen the most, by 19.8% to $846,500.
If you’re interested in the Vancouver real estate market, give us a call today. Our agents will help you find your next dream home.
