Vancouver home sales declined in May while inventory levels continue to rise | Vancouver Real Estate Market Update | May 2024 | Matt Gul Group

VANCOUVER, BC – June 4, 2024 – The number of transactions on the Multiple Listing Service® (MLS®) declined in May compared to what is typical for this time of year in Metro Vancouver. This shift has allowed the inventory of homes available for sale to continue to accumulate with over 13,000 homes now actively listed on the MLS® in the region.

Greater Vancouver Realtors | May 2024 | News Release
*Report released before Bank of Canada's interest rate announcement on June 5th, 2024 - Click Here to View*

For the first time in 4 years, the Bank of Canada (BoC) announced on June 5, 2024 that it would be cutting its overnight interest rate by -0.25 to 4.75%, down from 5% which is the level it has maintained since July 2023.

The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region reached 2,733 in May 2024, marking a 19.9 percent drop from the 3,411 sales recorded in May 2023. Additionally, last month's sales were 19.6 percent below the 10-year seasonal average for May, which stands at 3,398.

The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data said Andrew Lis, GVR’s director of Economics and Data Analytics. It’s a natural inclination to chalk these trends up to one factor or another, but what we’re seeing is a culmination of factors influencing buyer and seller decisions in the market right now. It’s everything from higher borrowing costs, to worries about the economy, to policy interventions imposed by various levels of government.

In May 2024, 6,374 detached, attached, and apartment properties were newly listed for sale on the MLS® in Metro Vancouver. This figure represents a 12.6 percent increase from the 5,661 properties listed in May 2023 and a seven percent increase from the 10-year seasonal average of 5,958.

"The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,600, a 46.3 per cent increase compared to May 2023 (9,293). This total is also up 19.9 per cent above the 10-year seasonal average (11,344)."

MLS®, Multiple Listing Service®, and all related graphics are trademarks of The Canadian Real Estate Association
The above info is deemed reliable, but is not guaranteed. All dollar amounts in CDN.

Benchmark Price: Estimated sale price of a benchmark property. Benchmarks represent a typical property within each market.

Price Index: Index numbers estimate the percentage change in price on typical and constant quality properties over time. All figures are based on past sales.

The sales-to-active listings ratio across all property types—detached, attached, and apartments—stood at 20.8 percent in May 2024. By category, the ratio was 16.8 percent for detached homes, 25.1 percent for attached properties, and 22.5 percent for apartments.

Historical data analysis indicates that home prices tend to fall when the ratio remains below 12 percent for an extended period, while prices typically rise when the ratio exceeds 20 percent over several months.

With market trends now shifting toward more balanced conditions, as new listings outpace sales, we should expect to see slower price growth over the coming months said Andrew Lis. Until recently, prices were modestly increasing across all market segments. However, with rising inventory levels and weakening demand, buyers who have been waiting for an opportunity might have better luck this summer, even if borrowing costs remain high.

"The MLS® Home Price Index (HPI) composite benchmark price3 for all residential properties in Metro Vancouver is currently $1,212,000. This represents a 2.3 per cent increase over May 2023 and a 0.5 per cent increase compared to April 2024."

In May 2024, sales of detached homes totaled 846, marking an 18.9 percent decline from the 1,043 sales recorded in May 2023. The benchmark price for a detached home is $2,062,600, reflecting a 5.9 percent increase from May 2023 and a 1.3 percent rise compared to April 2024.

Sales of apartment homes reached 1,338 in May 2024, a 22.7 percent drop from the 1,730 sales in May 2023. The benchmark price for an apartment home is $776,200, which is a 2.2 percent increase from May 2023 but a 0.3 percent decrease compared to April 2024.

Attached home sales in May 2024 totaled 523, representing a 14 percent decrease from the 608 sales in May 2023. The benchmark price for a townhouse is $1,145,500, showing a 5.2 percent increase from May 2023 and a 0.9 percent rise compared to April 2024.

Areas covered by Greater Vancouver REALTORS® include: Bowen Island, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.

All graphics and data are provided and sourced from Greater Vancouver REALTORS® & The Canadian Real Estate Association