REBGV Market Update For May 2021 – Is The Market “Heading Back To Earth” As Activity Moves Away From Its Record Breaking Pace?
In March and April of this year, the Metro Vancouver real estate market was setting new record highs. However, some economists and analysts have noted signs of the market cooling down as transaction volume dropped to near 10 year averages for May.
According to Keith Stewart, REBGV Economist ” While home sales and listing activity remained above our long-term averages in May, conditions moved back from the record setting pace experienced throughout Metro Vancouver in March and April this year.”
He added “With a little less intensity in the market today than we saw earlier in the spring, home sellers need to ensure they’re working with their realtor to price their homes based on current market conditions.”
Realtors registered 4,268 residential property sales in May 2021 for the region. This represented a 187.4% increase from the same period last year in which 1,485 sales were recorded, and a decrease of 13% from April 2021 when 4,908 homes were sold.
The number of detached properties sold was 1,430 a 166% increase than May 2020 (537 sales).
The number of apartments sold was 2,049, 213% more than May 2020 (653 sales).
The number of attached properties sold was 800, 168% more than May 2020 (298 sales).
May 2021 saw 7,125 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver. This was a 93.4% increase compared to the 3,684 homes listed in May 2020, and a 10.2% decrease compared to April 2021 when 7,938 homes were listed.
The total number of homes listed on the MLS system in Greater Vancouver in May was 10,970, which was a 10.5% increase compared to the previous year when 9,927 homes were listed.
This ratio gives a better understanding of the relationship between supply and demand in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for sustained periods.
For all property types, the ratio in May 2021 was 38.9%. When broken down by property types, the ratio was:
8% for detached homes – firmly in seller market territory
8% for townhomes – firmly in seller market territory
5% for condominiums – firmly in seller market territory
For the month of May 2021, The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,172,800. This was a 14% increase over May 2020 and a 1.5% increase when compared to April 2021. In May, properties were beginning to sell below their asking price and assessed value – something that has not happened for a while.
There has never been a better time to conduct a real estate transaction. If you are buying or selling a home, you need to get in touch with an experienced real estate company such as ours to navigate this market during these unheard of times. Contact us by email or call us on 604 913 1000.