May 2019 saw the beginning of patio season, summer-like weather, Playland opening for the season, and rising gas prices. We also saw some changes to the Greater Vancouver Real Estate Market. Although home sales have increased, we’re still seeing buyer demand remain below the historical average.
The Real Estate Board of Greater Vancouver reports that home sales in Metro Vancouver surpassed 2,000 for the first time this year with 2,638 last month. This is a 44.2% increase from April 2019 (1,829) and a 6.9% decrease from this time last year (2,833).
Newly listed properties in May for Metro Vancouver reached 5,861 for all property types. This equates to a 2.1% increase from April 2019 (5,742) and an 8.1% decrease compared to May 2018 (11,292).
Analysts generally agree that downward pressure on home prices occur when the sales-to-active ratio dips below 12% which is referred to as a Buyer’s Market, whereas home prices experience upward pressure when it goes beyond 20%, also referred to as a Seller’s Market. A Balanced Market is between the two. Metro Vancouver saw an increase in the combined sales-to-active ratio from last month putting us in a very strong balanced market with 18%.
Broken down by property type, the sales-to-active ratio for May was 14.2% for detached homes, 20% for townhouses, and 21.2% for condos. This means that both townhouses and condos are in a Seller’s Market whereas the detached sector has moved back into a Balanced Market.
The benchmark price for all residential homes has decreased slightly to $1,006,400 which is 0.4% lower than April. We’ve seen a 3.4% decrease over the past six months and an 8.9% decrease from May 2018.
The total sales for May 2019 were 2,638. This works out to 913 detached homes with a benchmark price of $1,421,900, 479 townhouses with a benchmark price of $779,400, and 1,246 apartments with a benchmark price of $664,200.
Ready to jump into the market? Whether you’re looking to buy, sell, or learn more about what this means for you, reach out to us today!