balance amidst Vancouver’s housing gymnastics
Swelling supply and declining demand have conspired to create more moderate conditions in the housing market of the Vancouver Region—so much so, in fact, that for the first time in two years the detached home segment shifted into balanced territory.
at higher prices, conditions are more balanced—even favouring buyers at the extreme end of the value spectrum—with $1.5-2M homes accompanied by a S-L ratio of 20%, and $2-3M homes a 15% S-L ratio. For homes priced at $3M or more—out of reach for the average buyer, to be sure—the S-L ratio is 8%. In sum, the segment of the market in which most buyers participate continues to be more competitive than the overall numbers suggest, with detached homes priced below $1.5M accounting for 1 in 3 sales, but only 1 in 5 listings, regionally. If the market inertia —of expanding inventory and blunted sales—that has ensconced itself in 2022 continues as we transition through the month of June (or should we say, Juneuary) and into summer, don’t be surprised if the balanced conditions currently reserved for describing the detached segment become more contagious.
Over the past 24 months, Vancouver’s housing market has—along with many others nationally—been marked by ne’re- before-seen demand and ghosting supply. In turn, the painfully (for many) obvious consequence has been conditions that have been tilted strongly in favour of sellers, as defined by the sales-to-listing (S-L) ratio in the Vancouver Region exceeding 21%. Furthermore, it’s not just the overall S-L ratio that has remained above 21% every month since June 2020, but also that of each home type, as well—until May 2022, that is, when the S-L ratio for detached homes slipped to 18%. While the region’s detached segment is now technically balanced, the broader market for housing continues to favour sellers. The overall sales-to-listings ratio for May,
for example, came in at 27%—though this was the lowest such reading since August 2020. Notably, the S-L ratio has sagged to its current level from a much-more-robust 59% in just two months as sales activity has slowed and inventory continues its upward march. Despite this, the townhome and condo segments remain entrenched in sellers’ territory, with current S-L ratios of 34% and 38%, respectively. The variation that exists within the overall- balanced detached market deserves some attention. Specifically, when the market for houses is delineated by price range, it’s clear that the market for lower-priced homes continues to be the most competitive for buyers. For detached homes of less than $1.5M, for example, the market still favours sellers (with a S-L ratio of 28%). However,
Copyright © 2022 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of June 7 2022. All data from Real Estate Board of Greater Vancouver and Fraser Valley & Rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 3
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