Contrary to popular belief, Vancouver's housing market is still doing well. Properties are being sold quickly and at high prices.

Although the median home price in Metro Vancouver had declined by 10% from $1.98m in January 2022 to $1.8m in January 2023, the condo market had only experienced 3% price $1.05m to $1.02m during the same period. 

“Higher interest rates have slowed the property market”

Market expectations were that the doubling in mortgage interest rates over the past one year would have cause a panic to home sellers wanting to sell before home buyers moving to the sideline. Higher interest rates, stricter mortgage lending rules and home buyer sentiment had all contributed to the decline in property prices the past few months.

There are many homebuyers having the perception that home prices will continue to fall. But, the last month's rush of buyers and many homes experiencing multiple offers had generated fierce debates in the industry whether home prices had infact bottomed out. But, home sales data for Februatry were not supporting a continued decline in home prices. 

A limited supply continued to support high property prices at current level causing some buyers to jump into the market, with many homes going into contract in just a few days after showing on the market.

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The Real Estate Board of Greater Vancouver (REBGV) reported 1,808 residential home sales in the region for February 2023 - a 47.2% decreased from the 3,424 sales compared to February 2022. The total home sales for the month were 76.9% increase from the 1,022 homes sold in January 2023.

Last month’s sales were 33 per cent below the 10-year February sales average.

Sales-to-active Lisitngs Ratio

For all property types, the sales-to-active listings ratio for February 2023 was 23%. By property type, the ratio was 16.8% for detached homes, 30.1% for townhomes, and 25.8% for apartments.

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. Other than detached homes, the markets for townhuses and condos are holding on to their current elevated prices.

In spite to highrer mortgage interest rates, there are no signs of home sellers under mortgage repayment pressure to list their homes for sale. if you are researching the housing market and interested to find homes for sale, you can browse the links here for Richmond detached homes, townhouses and condos for sale. 

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Sales To Active Listings Ratio 

The recent months hikes in mortgage rates to the mid 4.5% range for 3 and 5 years fixed mortgages, the Richmond housing market responded with very weak demand from home buyers. Many of th epropective buyers are holding back to find out how the market will turn out.

Both detached homes and townhouses in Richmond were now in Seller's market territory. It appears that Richmond condos are likely to follow.

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The Bank of Canada had said it will pause further rate increases if the incoming economic data continues to support this policy stance.

Below is a summary of the January 2023 housing market statistics.

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Home sellers have become increasingly active in Metro Vancouver’s* housing market this spring in response to heightened demand and rising home values that have materialized during the pandemic.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 4,908 in April 2021, a 342.6 per cent increase from the 1,109 sales recorded in April 2020, and a 14 per cent decrease from the 5,708 homes sold in March 2021.

Last month’s sales were 56.2 per cent above the 10-year April sales average and is the highest total on record for the month.

"Our housing market has changed considerably from one year ago when COVID-19 concerns brought activity to a near standstill. This was followed by a well-documented spike in home buyer demand across the region. So far this spring, we’ve seen a corresponding supply response from home sellers." - Keith Stewart, REBGV economist

Read the full report here.