Metro Vancouver real estate market showing signs of life after slow start to the year

After a slow start to the year, Metro Vancouver’s real estate market is showing signs of life, according to the latest numbers from the Real Estate Board of Greater Vancouver (REBGV).

The board reports that there were 3,411 home sales in May, a 15.7 per cent increase from May 2022 (2,947), and 1.4 per cent below the 10-year seasonal average (3,458).

“This is the first month where we’ve seen a lot of activity in terms of sales,” Andrew Lis, REBGV’s director of economics and data analytics told CTV News.

Lis says the Bank of Canada raising interest rates had hampered the market for months, but people may be realizing they might not be lowered any time soon.

“I think a lot of buyers and sellers are starting to get accustomed to the rate environment, they’ve seen that the rates aren’t going to move around all that much,” he said.

“That’s brought a lot more people into the marketplace,” he continued.

The rise in sales led to prices increasing for the sixth straight month.

According to REGBV, the average price for all residential properties in the region is $1,188,000, which is a 5.6 per cent drop off from May of last year, but a 1.3 per cent increase from last month.

While sales are on the rise, Lis says a lack of inventory continues to be a serious issue, a main driver of prices going up.

“When you have a surge in demand like we’ve just had, and you butt that up against a low inventory scenario--there’s really only one way for prices and that’s up,” Lis said.

There’s currently 9,293 homes listed for sale in Metro Vancouver, a 10.5 per cent drop off from May of 2022.

As for as apartments, there’s currently 5,661, an 11.5 per cent decline from last May.

Lis says overall, the 10-year seasonal averages show the market appears to be inching closer back to a more normal state.

“It’s interesting to see that across all the product types, in almost every area of Greater Vancouver,” he said. “It’s a fascinating market to watch right now.”