The numbers are out for May from the Real Estate Board of Greater Vancouver, and it’s clear that the heat we felt from the housing market at the beginning of this year has cooled. That doesn’t mean the pendulum has swung to the other side, instead sales activity has returned to be more in line with historical levels instead of the record setting numbers we saw in 2021.
Before we dive into the numbers, it’s important to note that the national MLS Home Price Index methodology was updated during an annual review in May. Beginning in June 2022 for the May statistics, the HPI will reflect data collected from the previous 5 years, to keep in line with modern housing trends and reflect the pricing of homes with attributes that are standard in today’s market. More information can be found HERE.
Now, on to the numbers; sale price as a percent of list price dropped consistently last month for detached homes, townhomes and condos falling by 2.8%, 2.6% and 2% respectively. Further, we saw average days on market drop for detached home and condos (by 10% and 6.3% respectively), however it increased for townhomes by 8.3%.
The most notable change, however, was in the sales to active ratios as all product types dropped drastically compared to the previous month. Detached homes led the way, falling by 27.7% which officially placed them in what is considered a “balanced” market. Condos and townhomes fell by 15.3% and 14.9% respectively but remain firmly planted in a seller’s market.
Lastly, the number of active listings rose across the board and, for the second month in a row, sales saw a steady decline across all product types. The month over month decreases for each product type were as follows:
- Detached homes: -17.6%
- Townhomes: -10%
- Condos: -5.1%
What does this mean for the development land market in Greater Vancouver?
The development land market in Greater Vancouver remains active, however, the rise in interest rates and proposed municipal changes to development costs have encouraged buyers to be assiduous with their due diligence periods, and not as ‘trigger-happy’ on transactions as we saw in 2021. The month-over-month increase in listings has re-shaped conversations with owner-occupier sellers of development land, as the idea of replacing their home is not as daunting as it was earlier this year. The rise in interest rates has now forced buyers who are in the market to purchase a home re-evaluate their housing options and purchasing power. Between this pause in buyer activity and the sheer increase in the number of listings, development land sellers who will be cashed up and entering the buyer pool have a unique opportunity to capitalize on a purchase without as much competition as there was even a few months ago.
Check out our curated summary of the Greater Vancouver Real Estate Board’s May 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 May 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.