Skip to main content

Sales, listings still strong in Vancouver real estate market, but slight cooling noted in May

An Air Canada Boeing 787 aircraft arriving from Toronto passes behind condo towers in the Metrotown area of Burnaby, B.C., while on approach to land at Vancouver International Airport, on Sunday, May 30, 2021. (THE CANADIAN PRESS / Darryl Dyck) An Air Canada Boeing 787 aircraft arriving from Toronto passes behind condo towers in the Metrotown area of Burnaby, B.C., while on approach to land at Vancouver International Airport, on Sunday, May 30, 2021. (THE CANADIAN PRESS / Darryl Dyck)
Share
VANCOUVER -

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

Do these exercises for core strength if you can't stomach doing planks

Planks are one of the most effective exercises for strengthening your midsection, as they target all of your major core muscles: the transverse abdominis, rectus abdominis, external obliques and internal obliques. Yet despite the popularity of various 10-minute plank challenges, planking is actually one of the most dreaded core exercises, according to many fitness experts.

Stay Connected