REBGV Market Update April 2022 – Housing market Appears To Be Slowing Down, Although Prices Remain Steady.
The April 2022 market report released by the Real Estate Board of Greater Vancouver (REBGV) stated that home buyer demand returned to more historically typical levels. The slowing down was partly attributable to the increase in interest rates by the Bank of Canada, in an attempt to tame inflation.
REBGV chair Daniel John commented that “Over the last two months, we’ve seen home sales ease down from the record-breaking pace of home sales that we’ve experienced so far this spring provides hopeful home buyers more time to make decisions, secure financing and perform other due diligence such as home inspections.”
There were 3,232 residential property sales in April. This represented a 34.1% decrease from the 4,908 sales recorded in April 2021 and a 25.6% decrease from March 2022 when 4,344 homes were sold.
The number of detached properties sold was 962, 41.9% less than April 2021.
The number of apartments sold was 1,692, 26.1% less than April 2021.
The number of attached properties sold was 578, 40% less than April 2021.
There were 6,107 newly listed detached, attached and apartment properties for sale on the Multiple Listing Service (MLS) in Metro Vancouver, a far cry from April 2021 which saw the highest listing total ever recorded in the region for the month of April, when 7,938 homes were listed, and an 8.5 decrease compared to March 2022 when 6,673 homes were listed.
The total number of homes listed for sale in April was 8,796 a 14.1% decrease compared to April 2021 when 10,245 homes were listed and a 15.3% increase compared to the 7,628 homes listed in March 2022.
This is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio is below 12% for a sustained period, and there is upward pressure when the ratio is above 20% for a number of months.
For all property types, the ratio in April was 36.7%. When broken down by property types, the ratio was:
- 25.3% for detached homes
- 47.1% for townhomes
- 45% for condominiums
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,374,500 in April. This was 18.9% higher than April 2021 and 1% higher than March 2022.
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