Although generally a quiet month of market activity based on seasonal trends, total home sales and listings in November were below the long-term average for the region.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the area reached 1,614 in November 2022, down 52.9% from the 3,428 sales recorded in November 2021 and down 15.2% compared to 1,903 homes sold in November 2022. October 2022. Last month's sales were 36.9% below the November ten-year sales average.
“With the most recent core inflation metrics showing a stubborn reluctance to respond significantly to the furious pace of rate increases, the Bank of Canada may choose to act more forcefully to bring inflation back toward target levels.” Andrew Lis, REBGV’s director, economics and data analytics said. “While it’s always difficult to predict what the bank will do with certainty, this persistent inflationary backdrop sets up the December 7th rate announcement to be yet another increase, making holiday-season home purchases something many people may end up foregoing this year.”
There were 3,055 detached, additional and newly listed homes for sale on the Multiple Listing Service® (MLS®) in Greater Vancouver in November 2022. This represents a decrease of 22.9% from the 3,964 homes listed in November 2021 and a decrease of 24.2 percent from October 2022, when sellers listed 4,033 homes. The total number of homes currently listed on the MLS® system in Metro Vancouver is 9,179, an increase of 28.5% from November 2021 (7,144) and a decrease of 6.8% from October 2022 (9,852).
“Heading into 2023, the market continues the trend of shifting toward historical averages and typical seasonal norms,” Lis said. “Whether these trends continue will depend on looming economic factors and forthcoming housing policy measures on the horizon, which hold the potential to reignite uncertainty in our market.
“With that said, from a long-term structural standpoint, the current pace of listings and available inventory remain relatively tight when considered against a backdrop of continued in-migration to the province. With the recently announced increase in federal immigration targets, the state of available supply in our market remains one demand surge away from renewed price escalation, despite the inflationary environment and elevated mortgage rates.”
For all property types, the sales to active ratio in November 2022 was 17.6%. By property type, the ratio was 13.2% for single-family homes, 19.7% for townhomes and 20.8% for apartments. Typically, analysts say that low pressure on house prices occurs when the number falls below 12% for a long time, while house prices tend to be under pressure when they exceed 20% for several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,131,600. This represents a decrease of 0.6% from November 2021, a decrease of 10.2% in the previous six months and a decrease of 1.5% from October 2022.
Single-family home sales in November 2022 totaled 486, down 50.8% from the 987 single-family home sales recorded in November 2021. The reference price for individual properties is $1,856,800. This represents a decrease of 1.7% compared to November 2021 and 1.9% compared to October 2022. Home sales totaled 847 in November 2022, down 53.7% from 1,828 sales in November 2021. The benchmark home price is $720,500. This represents an increase of 3.5% compared to November 2021 and a decrease of 0.9% compared to October 2022.
Home sales in November 2022 totaled 281, down 54.2% from 613 sales in November 2021. The benchmark price for an additional unit is $1,027,900. This represents an increase of 2.7% compared to November 2021 and a decrease of 1.5% compared to October 2022.