Home sales plummeted in the Greater Vancouver Area in January, according to the Real Estate Board of Greater Vancouver (REBGV)..Sales in the GVA in January reached 1,022 homes, a 55.3% decrease from the 2,285 sales in January 2022 and down 21.1% from the 1,295 homes sold in December 2022..The January sales were 42.9% below the 10-year average, but for the most part, the declines were expected, says Andrew Lis, REBGV’s director, economics and data analytics..“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,” says Lis. “Looking forward, however, the Bank of Canada 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.”.Part of the sales decline can be attributed to a lower number of new listings..“There were 3,297 single-family, semi-attached and apartment properties newly listed for sale on the Multiple Listing Service (MLS) in Metro Vancouver in January 2023,” says Lis..“This is 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.” .Active listings increased.The new listings took active listings to 7,478, a 32.1% year-over-year increase from the 5,663 active listings in January 2022 and a 1.3% increase from 7,384 in December 2022..For all property types, the sales-to-active listings ratio for January 2023 was 13.7%, which is very low. .By property type, the ratio is 10.2% for single-family 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,” says Lis..“We know the peak for prices in our market occurred last spring,” he says. “Over the coming months, year-over-year data comparisons will show larger price declines than we’ve been reporting up to now. 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 market-wide home price index (HPI) composite benchmark price in Metro Vancouver was $1,111,400 in January, representing a 6.6% decrease over January 2022 and a .3% decrease compared to December 2022. .Sales of single-family homes in January were 295, a 52.6% decrease from the 622 sales in January 2022. The benchmark price for a single-family home was $1,801,300, a 9.1% decrease from January 2022 and a 1.2% decrease from December 2022. .Apartment sales reached 571 units in January, down 56.6% decrease from the 1,315 sales in January 2022. The benchmark price of an apartment home was $720,700, a 1.1% decrease from January 2022 and a 1% increase compared to December 2022. .Semi-detached home sales in January 2023 were 156, down 55.2%, a decrease from the 348 sales in January last year. The benchmark price was $1,020,400, down 3% from January 2022 and a .8% increase compared to December 2022.
Home sales plummeted in the Greater Vancouver Area in January, according to the Real Estate Board of Greater Vancouver (REBGV)..Sales in the GVA in January reached 1,022 homes, a 55.3% decrease from the 2,285 sales in January 2022 and down 21.1% from the 1,295 homes sold in December 2022..The January sales were 42.9% below the 10-year average, but for the most part, the declines were expected, says Andrew Lis, REBGV’s director, economics and data analytics..“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,” says Lis. “Looking forward, however, the Bank of Canada 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.”.Part of the sales decline can be attributed to a lower number of new listings..“There were 3,297 single-family, semi-attached and apartment properties newly listed for sale on the Multiple Listing Service (MLS) in Metro Vancouver in January 2023,” says Lis..“This is 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.” .Active listings increased.The new listings took active listings to 7,478, a 32.1% year-over-year increase from the 5,663 active listings in January 2022 and a 1.3% increase from 7,384 in December 2022..For all property types, the sales-to-active listings ratio for January 2023 was 13.7%, which is very low. .By property type, the ratio is 10.2% for single-family 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,” says Lis..“We know the peak for prices in our market occurred last spring,” he says. “Over the coming months, year-over-year data comparisons will show larger price declines than we’ve been reporting up to now. 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 market-wide home price index (HPI) composite benchmark price in Metro Vancouver was $1,111,400 in January, representing a 6.6% decrease over January 2022 and a .3% decrease compared to December 2022. .Sales of single-family homes in January were 295, a 52.6% decrease from the 622 sales in January 2022. The benchmark price for a single-family home was $1,801,300, a 9.1% decrease from January 2022 and a 1.2% decrease from December 2022. .Apartment sales reached 571 units in January, down 56.6% decrease from the 1,315 sales in January 2022. The benchmark price of an apartment home was $720,700, a 1.1% decrease from January 2022 and a 1% increase compared to December 2022. .Semi-detached home sales in January 2023 were 156, down 55.2%, a decrease from the 348 sales in January last year. The benchmark price was $1,020,400, down 3% from January 2022 and a .8% increase compared to December 2022.
