Inflation and interest rates prompt "quiet summer" for Metro Vancouver home sales

The slowdown in Metro Vancouver’s housing market that was experienced throughout the spring and first half of the summer continued into August 2022.

The Real Estate Board of Greater Vancouver’s (REBGV) report for the month shows there were 1,870 homes sold in August 2022 — representing a 41% drop from the 3,152 sales recorded in August 2021, and a 1% drop from the 1,887 homes sold in July 2022. Sales over the course of August were 29% below the 10-year sales average for the month.

You might also like:
• "Unprecedented" home price drop in Canada by early 2023: TD Bank
• Metro Vancouver renters are spending nearly 40% of their monthly income on rent
• These were the 10 most-viewed homes in Canada last month (PHOTOS)

“With inflationary pressure and interest rates on the rise, home buyer and seller activity shifted below our long-term seasonal averages this summer. This shift in market conditions caused prices to edge down over the past four months,” said Andrew Lis, the director of economics and data analytics for REBGV.

In August, there were 3,328 homes newly listed for sale, representing a 17.5% year-over-year drop compared to the 4,032 homes listed in August 2021, and a 16% decrease from the 3,960 homes listed in July 2020.

Currently, there are 9,662 active home listings within REBGV’s jurisdiction, which is a 7.3% increase from August 2021, and a 6% decrease from July 2022.

REBGV’s jurisdiction entails Vancouver, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Richmond, South Delta, Squamish, Sunshine Coast, West Vancouver, and Whistler. Other areas of Metro Vancouver — including Surrey, White Rock, North Delta, and Langley — are within the separate jurisdiction of the Fraser Valley Real Estate Board.

The benchmark price for all home types in the Vancouver Westside reached $1.299 million, representing a 5% drop since the housing market slowdown began six months ago. The benchmark price in the Vancouver Eastside was $1.17 million, representing a 4% drop over the same period. The decline was most pronounced with single-family detached homes.

For all property types across REBGV jurisdiction, the sales-to-active listings ratio for August 2022 was 19%, with single-family detached homes at 12%, townhomes at 25%, and apartments also at 25%. A downward pressure on home prices occurs when the ratio drops below 12% for a sustained period, while home prices see an upward pressure when it surpasses 20% over a few months.

The benchmark price for all homes within REBGV is currently hovering at $1.18 million — a 7.4% increase over August 2021, and a 2.2% decrease from the previous month.