A new report shows home sale rates in Metro Vancouver are being dragged down by a sluggish segment of the market.
Greater Vancouver Realtors’ report on May says home sales on average dropped four per cent compared to the same month last year. But the report says apartment sales are to blame.
“While attached sales held relatively steady and detached sales edged up roughly one per cent in May, apartment sales were down about seven per cent year-over-year, which weighed down the overall sales total,” explained Andrew Lis, GVR chief economist and vice-president of data analytics.
“Even then, apartment sales were not down uniformly across all regions – some of the larger areas such as North and East Vancouver saw increases relative to last year.”
The region reported 6,115 new listings in May – several hundred fewer than the year before. In total, GVR says 16,917 properties are for sale in Metro Vancouver.
In May, the sales-to-active listings ratio was 13.1 per cent, which the report says is just above the threshold to drive prices down.
“Price trends across all housing types were flat month-over-month, as a healthy level of inventory easily absorbed the relatively muted level of overall demand in the market,” Lis said.
“Year-to-date, sales have come in just shy of our forecast to this point in the year. With demand tracking our forecast so closely, it’s reasonable to expect a calm and orderly summer market, as no obvious near-term catalysts loom over the horizon to move the market significantly in either direction.”
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The composite benchmark price for all properties in the region is currently $1,100,700, the report says, marking a 6.2 per cent decrease year-over-year and a 0.2 per cent decrease from April.
Meanwhile, in the Fraser Valley, home sales increased modestly by 0.5 per cent from April, but dropped five per cent below the previous year.
The Fraser Valley Real Estate Board reports detached, single-family homes are also leading its region’s markets.
“We’re seeing limited activity from first-time buyers right now, with much of the market being driven by homeowners looking to move up,” said Ishaq Ismail, Chair of the Fraser Valley Real Estate Board.
“As prices in the detached segment have become more attainable, buyers with existing equity are finding opportunities to transition into larger homes and market segments that were out of reach just a few years ago.”
The composite benchmark price in the Fraser Valley decreased 0.7 per cent in May to $893,300.