April Market Update

Despite eight consecutive interest rate hikes that eroded borrowing power, home sales have risen close to levels seen last spring. The Real Estate Board of Greater Vancouver (REBGV) reported that residential home sales in the region totalled 2,741 in April 2023, a 16.5 per cent decrease from the 3,281 sales recorded in April 2022. However, home buyers are returning with confidence, with prices rising and sales rebounding.

According to the latest MLS HPI® data, home prices have increased about five per cent year-to-date, which outpaces the forecast of one to two per cent by year-end. It remains to be seen if these price increases will be sustained into 2024. There were 4,307 detached, attached, and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2023, which represents a 29.7 per cent decrease compared to the 6,128 homes listed in April 2022.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,790, a 4.2 per cent decrease compared to April 2022, and 20.9 per cent below the 10-year seasonal average. Across all detached, attached, and apartment property types, the sales-to-active listings ratio for April 2023 is 32.7 per cent. When the ratio dips below 12 per cent for a sustained period, there is downward pressure on home prices, while home prices experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,170,700, representing a 7.4 per cent decrease over April 2022 and a 2.4 per cent increase compared to March 2023. Sales of detached homes in April 2023 reached 808, representing a 16.3 per cent decrease from the 965 detached sales recorded in April 2022. The benchmark price for detached properties is $1,915,800, representing an 8.8 per cent decrease from April 2022 and a 2.9 per cent increase compared to March 2023.

Sales of apartment homes reached 1,413 in April 2023, representing a 16.5 per cent decrease compared to the 1,693 sales in April 2022. The benchmark price of an apartment property is $752,300, representing a 3.1 per cent decrease from April 2022 and a two per cent increase compared to March 2023. Attached home sales in April 2023 totalled 500, representing a 13.5 per cent decrease compared to the 578 sales in April 2022. The benchmark price of an attached unit is $1,078,400, representing a 6.1 per cent decrease from April 2022 and a 2.1 per cent increase compared to March 2023.

Despite the pandemic and economic uncertainties, Vancouver real estate has proven to be a resilient market. However, the issue remains a matter of far too little resale supply available relative to the pool of active buyers in the market. The competitive conditions created by near record-low inventory levels mean that almost any resurgence in demand would translate to price escalation, despite the elevated borrowing cost environment. When the REBGV released its market forecast in January, it was one of the only organizations taking the contrarian view that prices were likely to appreciate in 2023. What we're seeing unfold so far.