Metro Vancouver home sales slowed down slightly in May 2021

Jun 2 2021, 12:28 pm

Metro Vancouver home sales saw less activity, compared to the record-breaking intensity of earlier spring months, according to Real Estate Board of Greater Vancouver’s (REBGV) update for May 2021.

The month saw 4,268 homes sold, representing a 13% decrease from the 4,908 homes sold in April 2021, and a 187% increase from the 1,485 sales in the same period in 2020. The month’s sales were 28% above the 10-year sales average for May.

“While home sale 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 of this year,” said Keith Stewart, an economist with REBGV, in a statement.

There were a total of 7,125 homes newly listed for sale in REBGV’s jurisdiction in May 2021, representing a 93% increase compared to the 3,684 homes listed in May 2020 and a 10% decrease compared to April 2021, when 7,938 homes were listed.

Currently, there are a total of 10,970 homes listed for sale — a 10.5% increase from the 9,927 units in May 2020, and a 7% increase from the 10,245 units in April 2021.

“With sales easing down from record peaks, a revised mortgage stress test that reduces the maximum borrowing amounts by approximately 4.5%, and the average five-year fixed mortgage rates climbing back over two per cent since the beginning of 2021, we’ll pay close attention to these factors leading into the summer to understand what affect they’ll have on the current market cycle,” continued Stewart.

The sales-to-active listings ratio for May 2021 was 39%, with 29% for detached homes, 54% for townhomes, and 43.5% for apartments.

Downward pressure on home prices typically occurs when the ratio dips below 12% for a sustained period. Prices see an upward trend when it surpasses 20% over several months.

“The seller’s market conditions experienced throughout much of the pandemic highlight the need for increasing the volume and variety of housing supply across our region. Doing this requires a more disciplined focus on planning, reducing building costs, understanding demographic changes, and expediting the building approval process.”

The benchmark price for all residential properties in REBGV’s jurisdiction at the end of May 2021 was $1.173 million, which is a 14% increase over May 2020 and a 1.5% increase from April 2021.

REBGV’s jurisdiction covers Vancouver, Burnaby, New Westminster, Richmond, Pitt Meadows, Sunshine Coast, and all of the Tri-Cities and North Shore municipalities. Other areas such as Surrey, Langley, and White Rock are part of the Fraser Valley Real Estate Board.

May 2021 home sales statistics: REBGV

  • Detached homes
    • Number of units sold: 1,430 (+166% over May 2020)
    • Active listings: 4,769
    • Benchmark price: $1,800,600 (+22.8% over May 2020; +1.7% over April 2021)
    • Average days on market: 19
  • Apartment homes
    • Number of units sold: 2,049 (+213% over May 2020)
    • Active listings: 4,713
    • Benchmark price: $737,100 (+7.9% over May 2020; +1.2% over April 2021)
    • Average days on market: 19
  • Townhouse sales
    • Number of units sold: 800 (+168% over May 2020)
    • Active listings: 1,488
    • Benchmark price: $936,300 (+16.3% over May 2020; +1.8% over April 2021)
    • Average days on market: 16

Kenneth ChanKenneth Chan

+ News
+ Real Estate
+ Urbanized
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT