According to Edge Realty Analytics’ July Metro Deep Dive, Vancouver’s real estate market is exhibiting mixed trends, as home sales rise, but levels of inventory are building up.
Home Sales Experience Minor Increase
In June, Vancouver saw a slight increase in home sales, rising by 1.2% month-over-month (m/m) following a more significant 7% decline in May. Despite this improvement, sales remain substantially lower compared to previous years. Year-over-year (y/y), sales are down 19.1%, and they are 30% below averages of the past decade. Specifically, condo sales are down nearly 21% from the same period last year. Overall, sales across all segments are trending towards decade lows for the month.
Source: Edge Realty Analytics
New Listings Drop
Seasonally adjusted new listings saw a 4.5% increase m/m and a 7% rise compared to the previous year. However, this uptick in new listings has led to a decrease in the sales-to-new listings ratio, which now stands at 44%. Historically, this ratio is associated with an approximate 5% annual decline in house prices.
Source: Edge Realty Analytics
Rising Inventory Levels
Active listings in Vancouver have surged by 42% y/y, with a notable 54% increase in the condo segment. Inventory levels are experiencing significant counter-seasonal growth across both condos and single-family homes, contributing to the overall increase in available properties.
Source: Edge Realty Analytics
House Prices See Slight Drop
In June, seasonally adjusted house prices decreased by 0.2% m/m. This modest decline reflects the broader market dynamics influenced by rising inventory and the shifting sales-to-new listings ratio.
Source: Edge Realty Analytics
Surge in Construction Activity
Construction activity continues to rise, with the number of dwellings under construction increasing by 1.3% m/m in May. This growth is led by the condo segment, which saw a 1.8% m/m increase, and rental properties, which grew by 0.6% m/m. In contrast, the single-family segment has remained flat and is now down 16% y/y. Despite the high levels of housing starts, over 90% of the new construction in the past year has been concentrated in the apartment segment (condos and rentals), while single-family starts are at their lowest in 35 years.
Source: Edge Realty Analytics