Metro Vancouver home prices growing faster than forecasted this year to date: REBGV

The Real Estate Board of Greater Vancouver (REBGV) is reporting increased activity in Metro Vancouver’s housing market for May 2023.

The month saw total home sales reach 3,411 units, representing a 16% increase from the 2,947 sales in May 2022, and 1.4% below the 10-year seasonal average.

REBGV indicates that so far this year, the escalation in home prices has already far exceeded its entire previously forecasted total for 2023.

“Back in January, few people would have predicted prices to be up as much as they are – ourselves included,” said Andrew Lis, REBGV director of economics and data analytics.

“Our forecast projected prices to be up modestly in 2023 by about two per cent at year-end. Instead, Metro Vancouver home prices are already up about six per cent or more across all home types at the midway point of the year.”

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A total of 5,661 homes of all types were newly listed for sale in May 2023, which is an 11.5% decline from the 6,397 homes listed in the same month last year, and 4.3% below the 10-year seasonal average. The total number of homes currently listed for sale is 9,293 units, representing a 10.5% decrease compared to 10,382 units in May 2022, and 20.6% below the 10-year seasonal average.

“You don’t have to squint to see the reason prices continue to increase. The fundamental issue remains that there are more buyers relative to the number of willing sellers in the market. This is keeping the amount of resale homes available in short supply,” continued Lis.

“And in a surprising twist, MLS sales in May snapped back closer to historical averages than we’ve seen in the recent past, despite mortgage rates being where they are now, and new listing activity having been slower than usual this spring.”

He suggests the market would be red-hot, similar to the level of activity recorded in 2016/2017 or 2021/2022 if it were not for the high mortgage rates.

The benchmark price for all homes within REBGV’s jurisdiction is currently $1.188 million — a 5.5% drop from May 2022, and a 1.3% increase compared to April 2023.

Real Estate Board of Greater Vancouver

Real Estate Board of Greater Vancouver

Within the Vancouver Westside, the benchmark price for a home is currently $1.319 million, representing a 0.5% month-over-month increase, but a 3.6% year-over-year drop. In the Vancouver Eastside, the benchmark price is now $1.194 million, which is a 2% month-over-month (mom) increase, but a 4% year-over-year (yoy) decline.

Single-family detached homes now have a benchmark price of $3.339 million in the Vancouver Westside (+0.5% mom; +5.2% yoy) and $1.823 million in the Vancouver Eastside (+2.5 mom; -6.4% yoy).

Townhouses now have a benchmark price of $1.458 million in the Vancouver Westside (-3.0% mom; -4.1% yoy) and $1.109 million in the Vancouver Eastside (0% mom; -2.1% yoy).

Apartments now have a benchmark price of $850,000 in the Vancouver Westside (+1.2% mom; -2.7% yoy) and $707,000 in the Vancouver Eastside (+1.9% mom; -1.7% yoy).

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