Rising mortgage rates brought uncertainty and caution to Metro Vancouver's housing market in 2022. After seeing record sales and prices during the pandemic, Metro Vancouver’s housing market experienced a year of caution in 2022 due to rising borrowing costs fueled by the Bank of Canada’s ongoing battle with inflation.
The Real Estate Board of Greater Vancouver saw residential homes sales total 28,903 in 2022 which is a 34.3% decrease from 43,999 sales recorded in 2021, and 6.6% decrease from the 30,944 homes sold in 2020. Last year's sales total was 13.4% below the 10-year sales average.
Home listings on the Multiple Listing Service® (MLS®) in Metro Vancouver reached 53,862 in 2022. This is a 13.5% decrease compared to the 62,265 homes listed in 2021 and a 0.8% decrease compared to the 54,305 homes listed in 2020. Last year's listings total was 3.2% below the region's 10-year average.
Analysts generally agree that downward pressure on home prices occur when the sales-to-active ratio dips below 12% which is referred to as a Buyer’s Market, whereas home prices experience upward pressure when it goes beyond 20%, also referred to as a Seller’s Market. A Balanced Market is between the two. Metro Vancouver saw a decrease in the combined sales-to-active ratio from last month and now we are in a Balanced Market.
Broken down by property type, the sales-to-active ratio for December 2022 is 12.3% for detached homes, 19.5% for townhouses, and 21.7% for condos. This means that townhouses are in a Balanced Market, condos are in a Seller's Market as well and the detached sector is in a Balanced Market.
The Real Estate Board of Greater Vancouver reports that the composite benchmark price is currently above $1 million at $1,114,300. This represents a 3.3 per cent decrease over December 2021, a 1.5 per cent decrease compared to November 2022, and a 9.8 per cent decrease over the past six months.
The total sales for November 2022 were 1,295. This works out to 371 detached homes with a benchmark price of $1,823,300, 222 townhouses with a benchmark price of $1,012,700 and 702 apartments with a benchmark price of $713,700.
Ready to jump into the market? Whether you’re looking to buy, sell, or learn more about what this means for you, reach out to us today!