Greater Vancouver Real Estate Sales Drop 30%, Enters Balanced Market

Greater Vancouver real estate is adjusting to a world with higher rates very quickly. Real Estate Board of Greater Vancouver (REBGV) data shows home sales fell sharply in April. They even fell faster than inventory, actually releasing pressure on prices to rise. Home prices are seeing growth decelerate fast as the region enters a “balanced market.” 

Greater Vancouver Real Estate Prices Rise, But Not Nearly As Fast

Greater Vancouver real estate prices climbed higher — but at a much slower pace. The price of a benchmark home fell to $1,374,500 in April, rising 1.0% ($13,600) higher. This represents an 18.9% ($218,500) increase compared to last year. It was a big climb but, believe it or not, was slow compared to recent months.

Greater Vancouver Composite Benchmark Price

The price of a typical home across Greater Vancouver, in Canadian dollars.

Source: REBGV; Better Dwelling.

Vancouver Real Estate Price Growth Is Beginning To Moderate 

Both monthly and annual price growth are decelerating. Monthly growth for March had been 3.6% and April came in at a third of that rate. Annual growth was also nearly two points lower, also indicating deceleration. These are still very large gains but some signs of moderation are beginning to show.

Greater Vancouver Home Sales Fell 34%

Greater Vancouver home sales suddenly took a huge dive last month. REBGV reported 3,232 homes sold in April, a drop of 25.6% from a month before. Sales are 34.1% lower than last year. The sharp drop helped to cool demand, which is a general theme seen in the past few weeks across Canada. 

Greater Vancouver Composite Benchmark Price Change

The annual percent change of a typical home across Greater Vancouver.

Source: REBGV; Better Dwelling.

Greater Vancouver New Listings of Homes Fell 23%

New listings in Greater Vancouver also pulled back. There were 6,107 new listings of homes for sale in April, down 8.5% from a month before. Last month was 23.1% lower than the same month last year. These are big declines but not as much as seen for home sales, meaning less inventory pressure.

The easing inventory pressure was visible in the sales to new listings ratio (SNLR). April’s SNLR was 52.9%, indicating a balanced market that priced right for demand. Generally speaking, a balanced market is when the SNLR is between 40% and 60%. If the SNLR is higher, it’s a sellers’ market where prices rise, and below is a buyers’ market where prices fall.

Greater Vancouver real estate is still coasting on significant momentum. Recent gains would be huge if not compared to the past few months. This can be easily attributed to the fall in sales and healthier inventory. In the coming months, higher mortgage rates are likely to weigh down sales even further.