Market Stats: May 2024 Signal Shift Towards Balance
In the ever-changing landscape of Metro Vancouver’s real estate market, May 2024 has brought some interesting developments. Let’s dive into the latest trends and what they mean for buyers and sellers in the region.
Sales Slowdown Amidst Growing Inventory
The most striking feature of May’s real estate data is the notable decrease in property sales. With 2,733 residential sales recorded, we’re looking at a significant 19.9% drop compared to May 2023. This decline isn’t just a year-over-year phenomenon; it’s also 19.6% below the 10-year seasonal average for May.
But while sales are slowing, the inventory is on the rise. There are now over 13,000 homes actively listed on the Multiple Listing Service® (MLS®) in Metro Vancouver. This represents a whopping 46.3% increase from May 2023 and sits 19.9% above the 10-year seasonal average.
What’s Driving These Changes?
According to Andrew Lis, director of economics and data analytics at the Real Estate Board of Greater Vancouver (REBGV), multiple factors are at play:
- Higher borrowing costs
- Economic concerns
- Policy interventions by various levels of government
These elements combine to influence both buyer and seller decisions in the current market.
A Market Leaning Towards Balance
The sales-to-active listings ratio, a key indicator of market conditions, stands at 20.8% across all property types. This figure suggests we’re moving towards a more balanced market. Here’s a breakdown by property type:
- Detached homes: 16.8%
- Attached properties: 25.1%
- Apartments: 22.5%
Historically, when this ratio dips below 12% for a sustained period, it can lead to downward pressure on home prices. Conversely, a ratio above 20% over several months often results in upward price pressure.
Price Trends: Slowing But Still Positive
Despite the sales slowdown, prices are still showing modest growth. The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1,212,000, marking a 2.3% increase from May 2023 and a 0.5% increase from April 2024.
However, Lis predicts that “with rising inventory levels and softening demand, we should expect to see slower price growth over the coming months.”
What This Means for Buyers and Sellers
For potential buyers who have been waiting on the sidelines, this summer might present new opportunities. The combination of rising inventory and softening demand could create more favorable conditions, even if borrowing costs remain high.
Sellers, on the other hand, may need to adjust their expectations. With more properties on the market and fewer sales, competitive pricing and effective marketing will become increasingly important.
Looking Ahead
As we move into the summer months, all eyes will be on how these trends develop. Will the inventory continue to rise? Will sales pick up, or continue to lag behind historical averages? And how will these factors impact prices in the long run?
One thing is certain: the Metro Vancouver real estate market is in a period of transition. Whether you’re a buyer, seller, or simply an interested observer, it’s an intriguing time to watch this dynamic market evolve.