Sales, listings still strong in Vancouver real estate market, but slight cooling noted in May
The super-heated housing market in Metro Vancouver cooled slightly in May but the Greater Vancouver Real Estate Board says sales still remained active.
A statement from the board says 4,268 homes changed hands across the region last month, a 13 per cent drop compared with April.
While May didn't match record-breaking activity seen earlier in the spring, the board says transactions were still 187.4 per cent higher than those recorded in May last year during the pandemic shutdown.
Sales last month were 27.7 per cent above the 10-year sales average for May and the board says listing activity also remained above the long-term average.
The board's economist Keith Stewart says the less intense market means home sellers must work with their agents to ensure property prices are based on current market conditions.
The benchmark price for a detached home is just over $1.8 million, a 22.8 per cent year-over-year increase and a 1.7 per cent lift since April, while Stewart says condo and townhome prices nudged up 1.2 and 1.8 per cent, respectively, in April.
Analysts will also be gauging the revised mortgage stress test that reduces maximum borrowing amounts by approximately 4.5 per cent and are watching average five-year fixed mortgage rates as they climb over two per cent for the first time this year, Stewart says.
“We'll pay close attention to these factors leading into the summer to understand what affect they'll have on the current market cycle,” he says in the statement.
Stewart says the seller's market continues, with board data showing the number of sales to listings remains between 30 and 53 per cent for all types of properties, far above the 12 per cent ratio that generally leads to a dip in prices.
This highlights the need to increase the amount and type of housing available in Metro Vancouver, he says.
“Doing this requires a more disciplined focus on planning, reducing building costs, understanding demographic changes, and expediting the building approval process,” says Stewart.
This report by The Canadian Press was first published June 2, 2021.
CTVNews.ca Top Stories
Canadian gov't proposes new foreign influence registry as part of wide-spanning new bill
Prime Minister Justin Trudeau's government is proposing a suite of new measures and law changes aimed at countering foreign interference in Canada, amid extensive scrutiny over past meddling attempts and an ever-evolving threat landscape.
Boeing Starliner capsule's first crewed test flight postponed
The long-awaited first crewed test flight of Boeing's new Starliner space capsule was called off for at least 24 hours over a technical issue that launch teams were unable to resolve in time for the planned Monday night lift-off.
Teacher charged in historical sexual assault of Calgary teenage girl
Calgary police have charged a teacher with the alleged sexual assault of a teenage girl more than 20 years ago.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
Man banned from owning animals after fatal Calgary dog attack
The owner of three Calgary dogs that got loose and mauled a woman to death in 2022 has been ordered to pay a $15,000 fine within one year and banned from owning any animal for 15 years.
East-end Ottawa family dealing with massive rat infestation
Residents in Ottawa’s Elmridge Gardens complex are dealing with a rat infestation that just won’t go away. Now, after doing everything they can to try to fix the issue, they are pleading with the city to step in and help.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Newfoundland and Labrador latest province to tighten rules on Airbnbs
Newfoundland and Labrador is the latest jurisdiction to bring in stricter rules for short-term rentals, with a coming set of regulations that will force operators to register with the provincial government.