Market Highlights Greater Vancouver December 2022

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Real Estate

Following a year of record sales and prices during the pandemic, Metro Vancouver's* housing market faced a year of caution in 2022 as a result of increased borrowing costs spurred by the Bank of Canada's continued struggle with inflation.

According to the Real Estate Board of Greater Vancouver (REBGV), regional residential house sales were 28,903 in 2022, a 34.3 percent reduction from the 43,999 sales reported in 2021 and a 6.6 percent decrease from the 30,944 homes sold in 2020.

Last year's sales totaled 13.4 percent less than the 10-year average.

“The headline story in our market in 2022 was all about inflation and the Bank of Canada’s efforts to bring inflation back to target by rapidly raising the policy rate. This is a story we expect to continue to make headlines into 2023, as inflationary pressures remain persistent across Canada,” Andrew Lis, REBGV’s director, economics and data analytics said. 

In 2022, there were 53,865 home listings on the Multiple Listing Service® (MLS®) in Metro Vancouver. This represents a 13.5% reduction from the 62,265 properties listed in 2021 and a 0.8% decrease from the 54,305 homes listed in 2020.

Last year's total number of listings was 3.2% lower than the region's 10-year average.

The total number of houses presently listed for sale on the MLS® system in Metro Vancouver is 7,384, representing a 41% increase over December 2021 (5,236) and a 19.6% decline over November 2022. ( 9,179).

The current MLS® Home Price Index composite benchmark price for all Metro Vancouver residential homes is $1,114,300. This reflects a 3.3% decline from December 2021, a 1.5% decrease from November 2022, and a 9.8% decrease over the previous six months.

“Closing out 2022, the data show that the Bank of Canada’s decisions to increase the policy rate at seven of the eight interest rate announcement dates in 2022 has translated into downward pressure on home sale activity and, to a lesser extent, home prices in Metro Vancouver,” Lis said. “While the consensus among many economists and forecasters suggest the Bank of Canada may be near the end of this tightening cycle, rates may remain elevated for longer than previously expected since the latest inflation figures aren’t showing signs of abating quickly. We’ll watch the 2023 spring market closely to see if buyers and sellers have adjusted to the higher borrowing-costs and are participating more actively in the market than we have seen over the last 12 months.” 

Summary for December 2022
In December 2022, the region's residential housing sales totaled 1,295 units, a 51.8 percent decline from the 2,688 units sold in December 2021 and a 19.8 percent decrease from the 1,614 units sold in November 2022.

Sales last month were 37.7% lower than the 10-year December sales average.

In December 2022, there were 1,206 detached, attached, and apartment homes newly listed for sale on the MLS® in Metro Vancouver. This is a 38% decline from the 1,945 properties listed in December 2021 and a 60.5 percent decrease from the 3,055 homes listed in November 2022.

The sales-to-active listings ratio for all property categories in December 2022 is 17.5%. The percentage varies by property type, with detached homes accounting for 12.3 percent, townhomes accounting for 19.5%, and apartments accounting for 21.7 percent.

According to economists, downward pressure on home prices comes when the ratio falls below 12% for an extended period of time, while upward pressure occurs when the ratio exceeds 20% for several months. November 2022, with a 11.4 percent drop over the previous six months.

In December 2022, there were 371 detached house sales, a 53.3 percent reduction from the 794 detached sales in December 2021. A detached home costs an average of $1,823,300. This reflects a 5.1% decline from December 2021, a 1.8% decrease from November 2022, and a 11.4 percent decrease over the previous six months.

Apartment dwelling sales totaled 702 in December 2022, a 52% reduction from the 1,464 sales in December 2021. The average cost of an apartment house is $713,700. This reflects a 1.7% increase from December 2021, a 0.9% reduction from November 2022, and a 6.9% decline over the previous six months.

Attached house sales totaled 222 in December 2022, a 48.4% decline from the 430 sales in December 2021. A typical price for an attached house is $1,012,700. This reflects a 0.2% decline from December 2021, a 1.5% decrease from November 2022, and a 9.2% decrease over the previous six months.