Continuing the trend that has emerged in the housing market this year, the benchmark price for all home types in Metro Vancouver1 increased in June as home buyer demand butted up against a limited inventory of homes for sale in the region.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales2 in the region totalled 2,988 in June 2023, a 21.1 percent increase from the 2,467 sales recorded in June 2022. This was 8.6 percent below the 10-year seasonal average (3,269).
The market continues to outperform expectations across all segments, but the apartment segment showed the most relative strength in June. The benchmark price of apartment homes is almost cresting the peak reached in 2022, while sales of apartments are now above the region’s ten-year seasonal average. This uniquely positions the apartment segment relative to the attached and detached segments where sales remained below the ten-year seasonal averages.
There were 5,348 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in June 2023. This represents a 1.3 percent increase compared to the 5,278 homes listed in June 2022. This was 3.1 percent below the 10-year seasonal average (5,518).
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,990, a 7.9 percent decrease compared to June 2022 (10,842) This was 17.4 percent below the 10-year seasonal average (12,091).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for June 2023 is 31.4 percent. By property type, the ratio is 20.9 percent for detached homes, 38.5 percent for townhomes, and 39.4 percent for apartments.
Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 percent for a sustained period, while home prices often experience upward pressure when it surpasses 20 percent over several months.
Despite elevated borrowing costs, there continues to be too little resale inventory available relative to the pool of buyers in Metro Vancouver. This is the fundamental reason we continue to see prices increase month over month across all segments. With the benchmark price for apartments now standing at $767,000, we repeat our call to the provincial government to adjust the $525,000 threshold exempting first-time home buyers from the Property Transfer Tax to better reflect the price of entry-level homes in our region. This is a simple policy adjustment that could help more first-time buyers afford a home right now.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,203,000. This represents a 2.4 percent decrease over June 2022 and a 1.3 percent increase compared to May 2023.
Sales of detached homes in June 2023 reached 848, a 28.3 percent increase from the 661 detached sales recorded in June 2022. The benchmark price for a detached home is $1,991,300. This represents a 3.2 percent decrease from June 2022 and a 1.9 percent increase compared to May 2023.
Sales of apartment homes reached 1,573 in June 2023, an 18.6 percent increase compared to the 1,326 sales in June 2022. The benchmark price of an apartment home is $767,000. This represents a 0.5 percent increase from June 2022 and a 0.8 percent increase compared to May 2023.
Attached home sales in June 2023 totalled 547, a 17.6 percent increase compared to the 465 sales in June 2022. The benchmark price of an attached home is $1,098,900. This represents a one percent decrease from June 2022 and a 1.5 percent increase compared to May 2023.
