So the Real Estate Board of Greater Vancouver has just released our June 2022 statistics so let’s take a look at what happened.
The trends we have been tracking for the last couple of months with increasing inventory that has led to greater choice for buyers continues as we see the number of overall sales decrease.
Residential home sales in the region totalled 2,444 in June 2022, a 35 percent decrease from the 3,762 sales recorded in June 2021.
Of course, with rising interest rates, continued inflation and a war on many people’s minds, I don’t think these numbers come as a surprise.
The increase in inventory allows for a more pleasant experience on the buyer’s side after months of cutthroat competition and bidding wars.
That is not to say that bidding wars have been wiped out for good. In fact, great homes are always in demand, and aggressively priced homes will still generate huge interest.
While almost all segments of detached homes have adjusted to a balanced market, some areas, most notably West Vancouver, have become a full-blown buyers’ market. In June, West Vancouver saw 424 detached listings and only 32 sales, equaling an 8% sales ratio. That equals 13.25 months of inventory.
For all property types, the sales-to-active listings ratio for June 2022 is 23.4 percent, with the ratio at 14.3 percent for detached, 31.5 percent for townhomes, and 30.2 percent for apartments.
Typically downward pressure on home prices only occurs when the ratio drops below 12 percent for a sustained period of time. I have a funny feeling that West Vancouver will start to feel that pressure soon.
For many, the strength in the townhome and condo sections is a little surprising. However, what should not come as a surprise is the strength of condos and townhomes in some of Vancouver’s most desirable neighbourhoods. Take Kitsilano, for instance. It saw a 39% sales to active ratio. Then there is Fairview which was a whopping 51% sales ratio.
What that means is if you are looking at townhomes in either of those two neighbourhoods, be prepared for competition because they are firmly entrenched seller’s markets.
The news is heavily reporting today that sales year over year are down 35%, and while it is true sales are down from their crazy high in 2021,we need to understand that June 2021 was an abnormally high number of home sales, the highest in fact ever. This happened for a number of reasons, most notably that people were now working from home and needed more space. But if we go back to 2019, our last “normal market,” we only had 2094 sales in June.
So, we are still 350 sales up on June 2019 numbers.
So what does this mean for buyers? With more inventory on the market and half the buyer competition on vacation for the summer, this could be your time to get off the fence, lock in what is still a great rate and take advantage of the situation.
As for sellers, if you have a condo or townhome, they are still in great demand. Even better if your place is move-in-ready and does not require any renovations since people still do not want to deal with supply chain issues.
And for sellers with detached homes, don’t fret; sales are still happening; they are just happening at a more relaxed pace. But one thing is for certain the agent you choose to list your home in a moderating environment should have experience! They need a deep understanding of what it takes to market a home because gone are the days of putting a home on MLS, a sign in the front yard holding a Saturday & Sunday open house then expecting ten offers on a Monday.
On that note…
Thanks for tuning into our Greater Vancouver Real Estate Housing Update for June 2022 with me, Rhiannon Foster of the Opportunity Homes Collective. See you next month!