Vancouver home sales are down 42% and the number of homes for sale are down 10%
If there was ever a time to think differently about the housing market in Vancouver… this is it!
It’s a new and very different year in Vancouver’s real estate market here in January 2023. It’s a home buyer’s market in Vancouver with slightly dropping prices (3.3% compared to last December) and a significant slowing of home sales.
Of course, when you buy and sell in the same market, what you give up on the sale of your home can likely be made up on the savings when you buy.
Get the data. Listen, you need transparent data. It is the smartest way to ensure you are confident in setting the price of your home and selling it or buying at the right price.
Are you looking at buying or selling your home? Then you absolutely need to look at the specifics. The slowing of the housing market has not impacted all homes equally.
Bōde makes buying and selling your home a streamlined process offering significant time and cost savings along the way. We are also here to make sure you have the information you need to make the decisions that are right for YOU!
So what's happening in the Vancouver real estate market as of January 2023?
Let’s start with a Macroeconomics view
To understand what’s happening in the real estate market you have to look at supply and demand.
The best proxies for supply and demand are:
New supply: New Listings (i.e. the number of homes recently listed for sale)
Total supply: Inventory (i.e. the total number of homes listed for sale)
Sales (i.e. the number of homes recently sold)
Supply & Demand
Months of Supply (i.e. the number of months it would take to sell all current inventory at the current rate of sale)
These metrics are the best indicators of the health of the real estate market. Let’s look at what they show us.
Vancouver sales drop significantly below historical levels
New listings in December were down 35% while sales were down 42% vs. the average of the previous 4 years.
The total number of homes for sale dropped. Inventory is down 10% vs the average of the last 4 years.
‘Months of supply’ has increased quickly in recent months. There is currently almost 6 months of supply which is +23% vs the previous 4 years.
Less inventory & more months of supply makes conditions more favourable for sellers, while more inventory and higher months of supply is more favourable for buyers.
The sudden slow down in sales and hence increase in months of supply mean it’s now a more balanced market and starting to favour buyers (after a long period of being a strong sellers market).
Vancouver prices had been increasing quickly since the start of 2021, ending a relatively flat period between mid 2018 and the end of 2020. However prices are now declining. They are down 1.5% over last month, while being down 3.3% over last year.
What does this mean for sellers?
Right now, the balance of power is shifting from sellers to buyers. However, sellers who price their home well will be able to sell. Your specific property value will be determined by market forces both within your community and against similar active listings. To find out what supply and demand look like for your specific community, click here.
What does this mean for buyers?
There are currently fewer homes for sale than there have been in previous years. However the frenzy to view homes quickly and make a fast offer has slowed down considerably, allowing more time for inspections and document reviews.
Market conditions vary substantially by property type, community and price range.
Vancouver Detached Homes
Above, we’ve looked at the overall market for Vancouver, but different segments are performing very differently. Let’s look at a few examples.
Sales for detached homes were down 46% in December vs. previous years, while new listings were down 41%.
The overall number of detached homes for sale is down 14% vs the average of the last 4 years.
Detached prices had been increasing quickly for much of the past 2.5 years, but have declined in recent months. Prices are down 1.8% from last month, while being down 5.1% vs. this time last year.
New listings of apartments were down 42% in December compared the average of the previous 4 years, while sales were down 38%.
The overall number of apartments for sale is down 7% vs the average of the last 4 years.
Apartment prices have generally been increasing for most of the past year but have started to decline in recent months. Prices are down 0.9% from last month, while being up 1.7% vs. this time last year.
Vancouver Attached Homes
New listings of attached homes were down 32% while sales were down 44% in December (compared to previous years).
The overall number of attached homes for sale is down 1% vs the average of the last 4 years.
Prices for attached homes have been increasing quickly for the past year but have recently declined quickly. Prices are down 1.5% from last month, while being down 0.2% vs. this time last year.
However, what really matters is what’s happening in your specific local property market. There are some communities and price bands where homes are performing better/worse.
It’s critical to understand the dynamics in your local property market
To understand your local property market you need to look at your local data. Head over to Bōde’s new and improved Market Data dashboard, the only place where you can see all the data yourself, including being able to filter on community, property type, and price range to see exactly what’s happening where you live.
You can also see the sold price of any home that has sold in the last 3 years using Bode’s Sold Data page.
If you’re thinking about selling, take a look at how Bōde helps sellers sell for 1.3% higher prices while paying 50% less commission.
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