Metro Vancouver sees steady, calmer pace for the Summer Season.
While still elevated, home sale and listing activity in Metro Vancouver’s* housing market has eased back from the record-setting pace seen in March and April of this year.
Last month’s sales were 18.4 per cent above the 10-year June sales average.
“Metro Vancouver’s housing market continues to experience strong seller’s market conditions. Although the intensity of demand has eased to a steady calmer pace, from what we saw throughout most of the spring,” Keith Stewart, REBGV economist said. “The past two months have shown a market that’s shifting toward more historically typical conditions.”
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,839. A 5.1 per cent decrease compared to June 2020 (11,424). A 1.2 per cent decrease compared to May 2021 (10,970).
“With low interest rates, a growing economy, and an improving job market, the Metro Vancouver housing market continues to enjoy solid economic fundamentals,” Stewart said. “We’re now seeing a market that’s beginning to normalize from the torrid pace in the spring. This is making multiple offers less common, allowing subjects to be seen on offers more frequently again, and is making new price records less likely.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,175,100. This represents a 14.5 per cent increase over June 2020 and a 0.2 per cent increase compared to May 2021.
The Metro Vancouver* housing market saw steady home sales & listing activity in May. A shift back from the record-breaking activity seen in the earlier spring months.
Last month’s sales were 27.7 per cent above the 10-year May sales average
“While home sales & listing activity remained above our long-term averages in May. Conditions moved back from the record-setting pace experienced throughout Metro Vancouver in March and April of this year,” Keith Stewart, REBGV economist said. “With a little less intensity in the market today than we saw earlier in the spring. Home sellers need to ensure they’re working with their REALTOR® to price their homes based on current market conditions.”
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,970, a 10.5 per cent increase compared to May 2020 (9,927) and a 7.1 per cent increase compared to April 2021 (10,245).
Reducing the maximum borrowing amounts
“With sales easing down from record peaks. A revised mortgage stress test that reduces the maximum borrowing amounts by approximately 4.5 per cent. And the average five-year fixed mortgage rate climbing back over two per cent since the beginning of 2021. We’ll pay close attention to these factors leading into the summer to understand what affect they’ll have on the current market cycle,” Stewart said.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period. While home prices often experience upward pressure when it surpasses 20 per cent over several months.
“The seller’s market conditions experienced throughout much of the pandemic, highlight the need for increasing the volume and variety of housing supply across our region,” Stewart said. “Doing this requires a more disciplined focus on planning, reducing building costs. Understanding demographic changes, and expediting the building approval process.”
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