Vancouver Real Estate Prices Stabilize As Inventory Drops

Greater Vancouver real estate may be out of the gutter – for now at least. Real Estate Board of Greater Vancouver (REBGV) data shows sales made a big improvement in January. Real estate sales volumes haven’t returned to typical levels, but a drop in inventory led to a better balance. Prices are now only down slightly from last year.

Greater Vancouver Real Estate Prices Are Down Less Than 2%

Greater Vancouver real estate prices are starting to show signs of stabilization. REBGV reported the price of a typical home reached $1,008,700 in January, down 1.2% from last year. In the City, Vancouver East reached a benchmark of $1,074,300, up 0.7% from last year. Vancouver West’s composite benchmark hit $1,255,900, down 1.5% from last year. If you missed that, Vancouver East is back to printing broad market positives.

Greater Vancouver Composite Benchmark Price

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

Source: REBGV, Better Dwelling.

The rate of growth is still negative for Metro Vancouver, but it’s showing improvement. The 12-month rate of decline is now the smallest since November 2018 – over a year ago. Over the past six months, prices have increased 1.4%. They’re still down from the peak, but a better balance of sales and inventory is helping the market find its footing.

Greater Vancouver Composite Benchmark Price Change

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

Source: REBGV, Better Dwelling.

Vancouver Real Estate Sales Rise, But Are Lower Than Typical

Greater Vancouver real estate sales ripped higher, but fell short of typical volumes. REBGV reported 1,571 sales in January, down 22.1% from the month before. This represents an increase of 42.4% compared to the same month last year. The monthly decline is seasonal, and the annual decline seems very high due to last year’s very low volume. Compared to the 10-year average for the month of January, sales are actually 7.3% lower. Better than last year, but not quite a full recovery.

Vancouver Real Estate Inventory Is Down – Even For Typical Levels

Fewer people are listing their home for sale in Greater Vancouver, compared to last year. There were 3,872 new listings in January, down 143.8% compared to a month before. This represents a 20.1% decrease compared to last year. The monthly decline is somewhat typical, but the annual decline is a big drop.

Greater Vancouver Composite Sales Vs. Listings

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

Source: REBGV, Better Dwelling.

More sales and fewer new listings dropped total inventory for the market. REBGV reported 8,617 active listings in January, up 0.2% from a month before. This represents a 20.3% increase compared to the same month last year. The market is now 13.7 percent lower than the 10-year average for the month of January. Inventory for this market is much tighter than last year.

Tighter than last year isn’t necessarily too tight though, since things are balanced. At least according to the sales to active listings ratio (SALR), which reached 18.2% in January. For context, the SALR during this time last year was only 10.2%. Generally, prices are expected to rise above 20%. Prices usually fall when the SALR falls below 12%. Between 12 and 20%, the market is considered balanced. Currently the market is balanced, and the benchmark isn’t too far off from the expected move.

The Greater Vancouver real estate market is seeing more sales, and fewer listings. These aren’t extreme numbers in either direction, like Toronto is seeing. Prices are still significantly below the peak made a few years ago. However, the improved demand ratio has made prices much more stable for now.

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  • Reply
    Han 4 years ago

    Pandemic rush, mang. Pandemics are bullish. lol

    • Reply
      Kathleen Thomson 4 years ago

      You joke, but I actually read an article in Vancouver that expressed how worrisome it is that people may not buy luxury condos because of coronavirus concerns. Most disconnected take I’ve read in a long time.

  • Reply
    Joe Impartial 4 years ago

    Maybe you shouldn’t use biased words like “improvement” when describing home prices rising.
    Not everyone considers rising prices as an “improvement”

    • Reply
      Trader Jim 4 years ago

      Math isn’t bias. This is your bias showing.

      When things rise from negative, they “improve” to positive.” When things fall from positive, they “deteriorate” to negative. This is standard grammar for analysis.

      • Reply
        Rob 4 years ago

        Ignore him. There’s always going to be people that are jealous, and think other people need to lose money so they can afford a home. For society, higher prices are of benefit to the vast majority of people.

        Some people are victim to the world, and will complain about anything.

        • Reply
          Mark 4 years ago

          What are you talking about??? How higher prices will serve people and society lol?? You are either realtor, or some agency pet.
          Please explain.

      • Reply
        Joe Impartial 4 years ago

        It’s not just math.

        When buyers save money as prices lower, that is an increase, or improvement, in the amount they save.

        When sellers gain money as prices rise, that is an increase, or improvement, in the amount they gain.

        It depends on one’s position.

      • Reply
        Bill 4 years ago

        “When things rise from negative, they “improve” to positive.””

        By that logic if the temperature rises from a comfortable 20 degrees to a stifling 45 degrees, that’s an “improvement”

        Nice try.

        • Reply
          Trader Jim 4 years ago

          Nice try, Bill.

          Financial reporting and scientific reporting are two separate things. You don’t just drop a financial analysis to do climate science.

          • Canaduh 4 years ago

            Mortgage rate rising?
            Must be that math “improvement”.
            Thank you, come again.

      • Reply
        Lurkosaur 4 years ago

        “Math isn’t bias”

        Lol, and of course “math” cares that “negative improved to positive”.

  • Reply
    Noah 4 years ago

    Sell while this short lived sliver of temporary optimism exist. You will thank me later.

  • Reply
    Anubhav Beri 4 years ago

    Buying real estate in regions like metro Vancouver is always great in the long term. You will never regret buying in this market in LONG TERM.

    Or you can follow the bunch of losers who are always complaning about everything thing.
    Just focus on YOURSELF and forget what’s happening in the market and you will do great. Always buy when you can. Work hard, save money and only focus on yourself.

    • Reply
      Canaduh 4 years ago

      But in the long term,
      Death is inevitible.
      So we all will lose.

  • Reply
    LoL 4 years ago

    Not all things
    Tested positive for coronavirus.

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