The June housing market statistics are out from the Real Estate Board of Greater Vancouver and it’s apparent that we’re in a very different market than a few months ago. The number of available listings are up, while both pricing and sales declined when compared to previous two quarters. In fact, sales volumes were down significantly for all product types when compared to June last year:
- Detached homes: -48.3% YoY
- Townhomes: -36% YoY
- Condos: -25.3% YoY
Especially when compared to the frenzy of the first quarter of this year, it seems that we are moving towards balance being restored in the market. This is made evident as, in addition to the decrease in pricing and sales volume, all product types (detached homes, townhomes and condos) spent 16.7%, 15.4% and 13.3% more time on the market when compared to May 2022. Sale price as a percent of list price also decreased across all product types (between 1.2% and 2.4%).
The sales to active ratio continued to sharply decline month-over-month, inching detached homes closer to officially entering a buyer’s market, however townhomes and condos remained planted in a seller’s market. Benchmark prices for all product types declined yet again, with detached homes and condos falling by 1.7% and townhomes falling by 2.2% month-over-month; however, the HPI for all product types remained between 12% and 17% above where they were in June of last year. This, along with increased borrowing rates, an increase in inventory and slower pace of sales, suggests that the downward pricing trend will persist for the near future.
What does this mean for the development land market in Greater Vancouver?
The state of the current economic climate, along with the performance of end product market as of late, has made an impact on the Greater Vancouver development land market. In contrast to recent months, when sites would typically be snapped up relatively immediately, it is now more common to see sites launch and remain on the market for an extended period of time. Buyers remain interested in investigating sites further but are hesitant to pull the trigger on making an acquisition without flexibility from the sellers on terms for the contract, including extended due diligence and completion periods, smaller deposits and, of course, price.
Check out our curated summary of the Greater Vancouver Real Estate Board’s June Stats in our infographic below.
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.
View the Real Estate Board of Greater Vancouver’s entire stats package for June 2022 here.
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.