Vancouver Real Estate Inventory Jumps 38%, Now At 34 Month High

Vancouver Real Estate Inventory Jumps 38% Higher, Now At 34 Month High

There’s no signs that anti-speculation measures have lowered prices yet, although buyer demand dropped off of a cliff. Real Estate Board of Greater Vancouver (REBGV) numbers show prices were higher in May. The price climb wasn’t due to a lack of inventory though. Sales are well below normal, and inventory is soaring to multi-year highs.

Greater Vancouver Real Estate Prices Rise 12.5%

The benchmark price of a “typical” home in Greater Vancouver saw a small bump higher. REBGV reported a benchmark of $1,094,000 in May, up 0.2% from the month before. That brings the 12 month change to 11.5% higher from last year. All regions across REBGV saw prices remain higher than last year, with Vancouver West having to lowest composite gains. There, the benchmark rose 0.3%, which puts it on target for negative gains in real terms.

Greater Vancouver Composite Benchmark Price

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

Source: REBGV, Better Dwelling.

Annual price growth is actually higher this year than last. The 11.5% gain reported from REBGV in May 2018, is substantially higher than the 9.19% seen during the same month last year. Those taxes are really harming homeowner equity. \s

Greater Vancouver Composite Benchmark Price Change

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

Source: REBGV, Better Dwelling.

Greater Vancouver Real Estate Sales Are Down 35%

Residential real estate sales continue to decline across the region. REBGV reported 2,833 sales in May, a 9.8% increase from the month before. This represents a 35.1% decline year over year. The monthly increase is seasonally normal, but the annual decline is not. Sales for May are 19.3% below the 10-year sales average.

Greater Vancouver Composite Sales Vs. Listings

The number of homes sold vs total inventory in Greater Vancouver.

Source: REBGV, Better Dwelling.

Greater Vancouver Real Estate Inventory Rises 38%

Sales are dropping, but it’s not due to a lack of inventory. REBGV reported new listings reached 6,375 in May, a 9.5% increase from the month before. This represents a 5.5% increase compared to last year. Once again, the month over month increase is normal, the annual – not so much.

New listings rising while sales falling is leading to higher total inventory. REBGV reported 11,292 listing for sale in May, a 15% increase from the month before. This represents a massive 38.2% increase compared to the year before. Maybe inventory isn’t the issue?

The decline in sales and increase in inventory dropped the sales-to-listings ratio (SNLR). The SNLR for all home types in Greater Vancouver is now 25%, compared to 53% the same time last year. Technically speaking, REBGV currently considers the SNLR in “seller’s market” territory. The ratio would need to drop below 20% in order to be considered a “balanced market.” This is the lowest the ratio has been since January 2017.

REBGV’s benchmark rising at a faster pace than last year, doesn’t really make sense. Sales are down significantly, and inventory is rising even faster. Despite this, the buyers that are showing up are still paying more.

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  • Reply
    Bluetheimpala 4 years ago

    It started in BC and will end in BC. The epicenter of funny money in Canada. There will be blood. BD4L.

  • Reply
    Ken Wu 4 years ago

    Prices are falling, but the board uses that BS “HPI” frankenstein creation that nobody but them has access to, so they can claim prices did whatever they want. Notice they don’t quote the average price, because average prices are falling hard in the detached market.
    When will this smoke and mirrors show finally end? Enough already

  • Reply
    Ahmad 4 years ago

    There’s no smoke and mirrors. People in Vancouver are much wealthier than the rest of Canada (particularly Vancouver West). They can afford to keep their prices high and don’t have the same liquidity concerns as people in other regions.

    I don’t claim that this inst indicative of a softening market here in BC, but it’s certainly not the same issues that were present in Toronto and other regions. If you drive around Vancouver you see ferraris, bentleys, rolls royce and lots of other luxury vehicles on every street.

    • Reply
      queali 4 years ago

      what if the money you are seeing on the street in the form of luxury goods is actually purchased with borrowed money?

      • Reply
        backwardsevolution 4 years ago

        Queali – You are absolutely correct. Of course it is all borrowed money.

        • Reply
          Michael 4 years ago

          Yes except for the high proportion of that money that was laundered through criminal activities and never taxed.

  • Reply
    Bruno 4 years ago

    I really don’t see the Richmond market for detached homes moving down. That does beg the question if it will. But current buyers are scrambling to get financing and the banksters aren’t running out with wheelbarrows of cash for them.
    All that needs to be done to find the correct answer is to corner the gurus who are determining market values with their crystal ball (yes I along with a whole truckload of others don’t believe it’s a fully open market any longer).
    But on a brighter note, perhaps only the true sellers will stay in the market and the ones dreaming of a bonanza will pull out. Then the sales will start.

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