Economic fundamentals remain strong, though, making it a seller’s market
Although Vancouver suffered rising temperatures toward the end of June, the heat wave in the local housing market has cooled off from its record-breaking performance in March and April.
June residential sales in Metro Vancouver totalled 3,762, an 11.9-percent decrease from the 4,268 homes sold in May, according to the latest monthly report from the Real Estate Board of Greater Vancouver (REBGV).
More important, June sales were down 34 percent from the 5,708 homes sold in March, the highest ever monthly figure recorded for the region. June also marks the third straight month of declining sales, suggesting that the housing market is starting to normalize.
With intensity of demand easing after the spring, new sales are moving toward more “historically typical” conditions, REBGV economist Keith Stewart said in a release. “This is making multiple offers less common, allowing subjects to be seen on offers more frequently again, and is making new price records less likely.”
However, Metro Vancouver is still very much a seller’s market, with its sales–to–active listings ratio sitting at 34.7 percent for June. When that number tops 20 percent for several months, analysts say, home prices begin to experience upward pressure. The sales–to–active listings ratio last fell below 20 percent in May 2020.
“With low interest rates, a growing economy and an improving job market, the Metro Vancouver housing market continues to enjoy solid economic fundamentals,” Stewart said.
Prices in the region continue to reflect the trend, with the MLS Home Price Index’s composite benchmark price for all residential properties coming in at $1,175,100 for June, a slight increase over May.