Metro Vancouver saw a “modest increase” in home sales according to the latest report from the Real Estate Board of Greater Vancouver (REBGV).
Residential home sales in the region totalled 2,639 in May 2019. This is a 44.2 % increase from the 1,829 homes sold last month.
May 2019’s sales remain 6.9% lower than sales in May 2018 and 22.9% under the 10-year May sales average.
During the month, a total of 5,861 properties were newly listed, representing an 8.1% decrease compared to the 6,375 homes listed in the same month last year. It was a 2.1% increase compared to last month when 5,742 homes were listed.
Overall, the total number of homes listed for sale has increased by 30%. In May 2019 there were a total 14,685 homes for sale on the MLS system, compared to 11,292 in May 2018.
According to the REBGV, this is the highest number of homes for sale since September 2014, when 14,832 homes were listed.
The sales-to-active listings ratio for the month was 18%, with detached homes at 14.2%, townhomes at 20%, and apartments at 21.2%.
Analysts say downward pressure on prices occurs when the ratio falls below 12% over a sustained period, whereas prices go upward when it hovers over 20% over several months.
“High home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today,” said Ashley Smith, president of REBGV, in a statement.
The composite benchmark price for all residential properties in the region is currently $1,006,400 — down 8.9% over May 2018 and down 0.4% over April 2019.
With files from Kenneth Chan