Infographic: Greater Vancouver Residential Real Estate October 2022

The Greater Vancouver Real Estate Board has released their statistics for the month of October and it’s evident that home sale activity in the Metro Vancouver housing market remained well below historical levels last month.

KEY TAKEAWAYS FROM OCTOBER 2022 GREATER VANCOUVER RESIDENTIAL MARKET

  • As it stands, we sit in a balanced market for detached homes, however the sales-to-active ratios for townhomes and condos has increased, pushing them back into sellers’ market territory.
  • Sales price as a percent of list price only showed minimal changes across all product types but there was a significant change in the average days on market as all product types saw a significant decrease for the first time since May.
  • Benchmark pricing saw a month-over-month decrease across all product types, albeit, a small one. However, prices remain above those reported in October of last year.
  • We anticipate the downward pressure on pricing will continue as interest and inflation rates continue to increase.

HPI Benchmark Price of Detached Homes

While benchmark prices for detached homes continued to trend downwards for Greater Vancouver, the month-over-month change is the smallest we have seen since May of this year (only a -0.8% decrease), landing the HPI for October at $1,892,100.00.

Sale Price As a Percent of Original List Price

The average sale price as a percent of original list price continues to be stable across the board, with only a slight change to the numbers. Detached homes and condos decreased by -0.6% and -0.2% respectively, whereas townhomes increased by 0.1%.

Days on Market

Days on market decreased for all product types this month, particularly for condos which saw a huge 29% drop in the average time listings spent on the market. Condos and detached homes followed behind with a 9.7% and 5.7% drop respectively.

What Are the Sale Prices Of New Homes?

The following values are our opinion of current market revenue figures in two of the most active markets in the Tri-Cities. Prices are expressed as a blended average price per square foot (PSF). All prices reflect a well-executed, well-located project.

Scroll down past our development land update for the rest of the October 2022 statistics in infographics.

WHAT DOES THIS MEAN FOR DEVELOPMENT LAND IN GREATER VANCOUVER?

  • The Bank of Canada raised its policy interest rate by 50 basis points while maintaining its unwavering dedication to achieving a 2% inflation target and restoring price stability for Canadians.
  • Due to current interest rates and inflation, the land lending environment continues to be one of the most difficult ones we have faced in recent history, and it has reached the point where it disproportionately dominates the factors considered in decision-making.
  • Development land buyers are coming off the bench and starting to actively search for sites that meet their criteria.
  • More investors and developers are looking to make an acquisition during this “dip” and are starting to capitalize on the current sentiment of the land market as they seek out opportunities.

How Hot is the Land Market?

Which segment of Greater Vancouver’s residential development land market was the hottest over the last month? This is our opinion based on the volume of acquisition requests from developers, where multiple offers have been received on our listings, and the terms we’re having to include in offers to beat the competition.

Sales To Active Listings Ratio

Sales to active ratios for townhomes and condos are at 21.6% and 23.2%, respectively, bringing them into ‘balanced market’ territory from sellers’ market territory. Detached homes also increased and remain in a balanced market at 14.3%.

HPI Benchmark Prices

The Home Price Index (HPI) measures the price of a benchmark, or typical, property in a given market and is not influenced by the change in composition of properties sold, which can fluctuate quite significantly from month to month. As a result, this metric is a more pure and stable representation of market price change than average or median prices.

Yet again, benchmark pricing saw a month-over-month decrease across all product types, however, prices remain above thsoe reported in October of last year. We anticipate the downward pressure on pricing will continue as interest and inflation rates continue to increase.

Sales • New Listings • Active Listings

Month-over-month the number of new listings increased for townhomes but decreased for condos and detached homes.

October in Quotes

“Inflation and rising interest rates continue to dominate headlines, leading many buyers and sellers to assess how these factors impact their housing options.”

  • Andrew Lis, Director of Real Estate Board of Greater Vancouver

“With sales remaining near historic lows, the number of active listings continues to inch upward, causing home prices to recede from the record highs set in the spring of 2022.”

  • Andrew Lis, Director of Real Estate Board of Greater Vancouver

“Home sale activity across the Metro Vancouver housing market continued to trend well below historical averages in October.”

  • Real Estate Board of Greater Vancouver

FURTHER READING

View the Real Estate Board of Greater Vancouver’s entire stats package for October 2022 here.

Please note: areas covered by the Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta.

SOURCES

Sources: Breakside Real Estate Group, New Home Source, Real Estate Board of Greater Vancouver

This representation is based in whole or in part on data generated by the Real Estate Board of Greater Vancouver which assumes no responsibility for its accuracy.

Justin Mitchell

Personal Real Estate Corporation

Founding Partner
Residential Development Land
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Adam Lawrence

Personal Real Estate Corporation

Development Land Sales
Residential Development Land
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Megan Johal

Personal Real Estate Corporation

Development Land Sales
Residential Development Land
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