Strong Sales Propel Metro Vancouver Home Prices Past July Rate Hike

Hello, valued readers!

As your trusted team of successful realtors in Metro Vancouver, we are here to keep you updated on the latest trends in the local real estate market. Today, we bring you exciting news from the Real Estate Board of Greater Vancouver (REBGV) about the July 2023 market insights.

 

 

Record-Breaking Sales

In July 2023, the Metro Vancouver real estate market witnessed an impressive surge in residential property sales. A total of 2,455 homes were sold, representing a remarkable 28.9 per cent increase from the 1,904 sales recorded in July 2022. This astounding growth indicates a robust demand for housing in the region, despite the sales volume remaining approximately 15 per cent below the ten-year average.

The market’s buoyant performance is especially noteworthy when considering the significant challenge it faced in July 2022. At that time, the Bank of Canada implemented a ‘super-sized’ one per cent rate hike, which had a chilling effect on the real estate market activity. However, fast forward one year, and the market has not only bounced back but has also demonstrated resilience and adaptability in the face of higher borrowing costs.

Inventory and Sales Ratio

As the demand for housing remains strong, the number of newly listed properties in July 2023 increased by 17 per cent compared to the same period last year. There were 4,649 detached, attached, and apartment properties listed for sale on the Multiple Listing Service® (MLS®), providing prospective buyers with more options.

However, it is essential to note that the total number of homes currently listed for sale on the MLS® system decreased by four per cent compared to July 2022. With 10,301 homes listed, the inventory remains relatively low and stands 14.4 per cent below the ten-year seasonal average.

The sales-to-active listings ratio for July 2023 is 24.9 per cent across all property types. This ratio is a key indicator of the balance between supply and demand in the market. A ratio above 20 per cent typically indicates upward pressure on home prices, and the current ratio shows that the market is still favoring sellers.

Rising Home Prices

With such robust demand and limited inventory, it comes as no surprise that home prices have continued to climb in Metro Vancouver. The MLS® Home Price Index composite benchmark price for all residential properties is now $1,210,700, representing a 0.5 per cent increase compared to July 2022.

Let’s take a closer look at individual property types:

  • Detached Homes: The benchmark price for a detached home is $2,012,900, showing a 0.6 per cent increase from July 2022. This category witnessed 681 sales in July 2023, a 28.7 per cent increase from the previous year.
  • Apartments: The benchmark price for an apartment home is $771,600, indicating a 2.6 per cent increase from July 2022. Apartment sales reached 1,281 in July 2023, a 20.7 per cent increase from July 2022.
  • Attached Homes: The benchmark price for an attached home is $1,104,600, displaying a 1.2 per cent increase from July 2022. Sales of attached homes surged to 466 in July 2023, a 53.3 per cent increase compared to July 2022.

Market Outlook

As we move forward, the market environment remains dynamic and resilient. Even with a quarter per cent rate hike by the Bank of Canada, mortgage rates are currently at their highest level in over a decade. However, buyers’ strong demand and their ability to adapt to and qualify for higher borrowing costs continue to propel the market forward.

Looking ahead, the real estate market in Metro Vancouver is likely to remain competitive due to the ongoing imbalance between supply and demand. Homebuyers will need to act decisively and be prepared to navigate the fast-paced market. As experienced realtors, we are here to guide you through this exciting journey of homeownership.

If you are considering buying or selling a property in Metro Vancouver, feel free to reach out to our team of dedicated professionals. We have a deep understanding of the local market dynamics and can provide you with valuable insights to make informed decisions.

Thank you for reading our blog post, and we look forward to assisting you with all your real estate needs.

Best regards,

Propel Real Estate Group