Inventory remains low in Metro Vancouver while home sales dipped well below monthly historical averages in January.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,022 in January 2023, a 55.3% decrease from the 2,285 sales recorded in January 2022, and a 21.1% decrease from the 1,295 homes sold in December 2022.
Last month's sales were 42.9% below the 10-year January sales average.
"Due to seasonality, market activity is quieter in January. With mortgage rates having risen so rapidly over the last year, we anticipated sales this month would be among the lowest in recent history," said Andrew Lis, REBGV's director, economics and data analytics. "Looking forward, however, the Bank of Canada has said that it will pause further rate increases as long as the incoming economic data continues to support this policy stance. This should provide more certainty for home buyers and sellers in the market."
There were 3,297 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2023. This represents a 20.9% decrease compared to the 4,170 homes listed in January 2022 and a 173.4% increase compared to December 2022 when 1,206 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 7,478, a 32.1% increase compared to January 2022 (5,663) and a 1.3% increase compared to December 2022 (7,384).
For all property types, the sales-to-active listings ratio for January 2023 is 13.7%. By property type, the ratio is 10.2% for detached homes, 13.4% for townhomes, and 16.7% for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
"We know the peak for prices in our market occurred last spring. Over the coming months, year-over-year data comparisons will show larger price declines than we've been reporting up to now," said Lis. "It's important to understand that year-over-year calculations are backward-looking. These price declines already happened, and what we are seeing today is that prices may have found a footing, even if it's an awkward one sandwiched between low inventory and higher borrowing costs."
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,111,400. This represents a 6.6% decrease over January 2022 and a 0.3% decrease compared to December 2022.
Sales of detached homes in January 2023 reached 295, a 52.6% decrease from the 622 detached sales recorded in January 2022. The benchmark price for a detached home is $1,801,300. This represents a 9.1% decrease from January 2022 and a 1.2% decrease compared to December 2022.
Sales of apartment homes reached 571 in January 2023, a 56.6% decrease compared to the 1,315 sales in January 2022. The benchmark price of an apartment home is $720,700. This represents a 1.1% decrease from January 2022 and a one% increase compared to December 2022.
Attached home sales in January 2023 totalled 156, a 55.2% decrease compared to the 348 sales in January 2022. The benchmark price of an attached home is $1,020,400. This represents a three% decrease from January 2022 and a 0.8% increase compared to December 2022.