Home sellers were more active in Metro Vancouver's housing market in September while home buyer demand remained below the region's long-term averages.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,687 in September 2022, a 46.4% decrease from the 3,149 sales recorded in September 2021, and a 9.8% decrease from the 1,870 homes sold in August 2022.
Last month's sales were 35.7% below the 10-year September sales average.
"With the Bank of Canada and other central banks around the globe hiking rates in an effort to stamp out inflation, the cost to borrow funds has risen substantially over a short period," said Andrew Lis, REBGV director, economics and data analytics. "This has resulted in a more challenging environment for borrowers looking to purchase a home, and home sales across the region have dropped accordingly."
There were 4,229 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2022. This represents an 18.2% decrease compared to the 5,171 homes listed in September 2021 and a 27.1% increase compared to August 2022 when 3,328 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,971, an eight% increase compared to September 2021 (9,236) and a 3.2% increase compared to August 2022 (9,662).
"With fewer homes selling and new listings continuing to come to market, inventory is beginning to accumulate, providing buyers with more selection compared to last year," Lis said. "With more supply and less demand within this market cycle, residential home prices have edged down in the region over the last six months."
For all property types, the sales-to-active listings ratio for September 2022 is 16.9%. By property type, the ratio is 12.4% for detached homes, 18.4% for townhomes, and 20.9% 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.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,155,300. This represents a 3.9% increase over September 2021, an 8.5% decline over the past six months, and a 2.1% decline compared to August 2022.
Sales of detached homes in September 2022 reached 525, a 44.7% decrease from the 950 detached sales recorded in September 2021. The benchmark price for a detached home is $1,906,400. This represents a 3.8% increase from September 2021 and a 2.4% decrease compared to August 2022.
Sales of apartment homes reached 888 in September 2022, a 45.2% decrease compared to the 1,621 sales in September 2021. The benchmark price of an apartment home is $728,500. This represents a 6.2%% increase from September 2021 and a 1.6% decrease compared to August 2022.
Attached home sales in September 2022 totalled 274, a 52.6% decrease compared to the 578 sales in September 2021. The benchmark price of an attached home is $1,048,900. This represents a 9.1% increase from September 2021 and a 1.9% decrease compared to August 2022.
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