Written by Alan Kelly, Bōde’s Chief Economists
Summer is here! In Vancouver real estate there has been a slow down in sales and prices compared to the last few months, however it’s still a great time for those thinking of selling as data shows prices are still significantly higher compared to the average of the last 4 years.
When you are thinking of buying or selling your home in Vancouver, it is important to understand what is happening in the housing market. Obviously, there are many important factors to consider (what kind of home you have, what community etc.), so it’s important to look specifically at what the market is doing in your local area.
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!
What’s happening in the Vancouver real estate market as of July 2022?
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:
Supply
- 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)
Demand
- 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 continues to see strong demand and low supply since the start of COVID.
New listings in June were up 3% while sales were down 9% vs. the average of the previous 4 years.
Because there were relatively more new listings than sales, the total number of homes for sale increased slightly this month. However inventory is still down 15% vs the average of the last 4 years.
‘Months of supply’ has increased but is still down 13% vs the previous 4 years, but is climbing quickly from recent levels.
Less inventory & fewer months of supply makes conditions more favourable for sellers, while more inventory and higher months of supply is more favourable for buyers.
Overall, Vancouver prices have been increasing quickly since the start of 2021, ending a relatively flat period between mid 2018 and the end of 2020. Prices are down 2% over last month, but are up 12.4% over last year.
What does this mean for sellers?
Right now supply is low relative to previous years, and demand is high which means it is a good time to sell your home. Sellers who price their home well will be able to sell quickly. However, 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. This means active buyers need to move fast to beat other buyers to available listings. One way you can move faster is by booking viewings directly through Bōde, so you don’t have to wait for a realtor to schedule your viewings or write your offer.
Market conditions vary substantially by property type, community and price range
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 28% in June vs. previous years, while new listings were down 2%
The overall number of detached homes for sale is down 17% vs the average of the last 4 years.
Detached prices have been increasing quickly for much of the past 2.5 years, but have declined in recent months.
Apartments:
New listings of apartments were up 0% in June compared the average of the previous 4 years, while sales were up 5%.
The overall number of apartments for sale is down 11% vs the average of the last 4 years.
Apartment prices have generally been increasing for most of the past year.
New listings of attached homes were up 12% while sales were up 7% in June (compared to previous years).
The overall number of attached homes for sale is down 21% vs the average of the last 4 years.
Prices for attached homes have been increasing quickly for the past year but have now started declining.
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.
Want to Buy or Sell Your Home Without an Agent?
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