It's not panic... It's calm
The not so Short, yet Easy summary
Total sales in Metro Vancouver decreased by 9.7% from April. Interest rates are the talk around 'everything' real estate. Sellers may have no worries nor desire to alter their maximum price expectation but its the Buyer's who determine value, as it is supposed to be. Total sales of all residential sales are down 31.6 from the furious May'21.
Inventory levels decreased by 8.8% compared to May'21 and a 13.8% increase from April'22.
In the last 30 days; sales are down 10%, inventory is up 14%. Buyer friendly
Sales to Active ratio for all property types is 29 = Seller's Market. However 29 is the lowest we have seen since January'21. A near 50% change in ratio is the big story, that options for Buyers have nearly doubled.
DETACHED SINGLE FAMILY - Greater Vancouver
1) Sales of detached homes in May'22 reached 793, compared to 962 sales recorded in April'22 and a 44% decrease from May'21 (1,419).
2) Sales-to-Active ratio - 18.3%. Compared to: April(25.3), March(38.8%), February(34.9%). 20%+ is a Sellers Market. BALANCED MARKET PLACE
3) Pricing - HPI -$2.093M. 1-year change; up 15%.
TOWNHOUSES - Greater Vancouver
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1) Sales totaled 520, a 21% decrease compared to the 800
sales in May'21.
2) Sales-to-Active ratio 35.5% compared to: April(47.1%),March(73.3%), Feb(64.3%). 20% is a Sellers Market.
3) Pricing - HPI - $1.141M. 1-year change: HPI up 21.5%.
CONDOS - Greater Vancouver
1) Sales of condo homes reached 1,605 in May'22, a 35% decrease compared to the 800 sales in May'21.
2) Sales-to-Active ratio 38.1% compared to: April(45%), March(70.3%), Feb(62.2%). 20% + is a Sellers Market. Almost 2x Seller's Market!!
3) Pricing - HPI $779,700. 1-year Change - HPI up 15%.
OVERALL
- May'22 sales were 12.9% below the May10-year average. This is a very important stat showing the slowdown.
- 6,377 newly listed homes for sale is 10.5% decrease from May'21.
- Total Active listings is 10,010; 8.8% decrease from May'21.
- Sales-to-Active ratio for the property types: 29.9% (all properties combined) is the lowest since January'21
- The MLS Home Price Index $1.261M(all properties) rose 14.7% from May'21.
- REBGV Sourced Summary
REFERENCE explanation: listing-to-sales ratio.
Arguably the MOST important stat considering Inventory & Sales combined is the listing-to-sales ratio. Our benchmarks are 12 and 20. When the ratio goes below 12, for continuous months, we are generally in a Buyer's market where prices can come down. When the ratio rises above 20 for continuous months, we are in a Seller's market where prices can rise.
Now that you have decided you want to get involved in a real estate purchase, what do you do first?
If you are planning to buy... get started ASAP. Have your financing in place and be ready to pounce when the opportunity presents itself - Interest rates are rising! Know your listing/sales ratios as a Buyer. Townhouse ratios have been cut in half! Best time for a townhouse purchase since Sept'20.
If you are thinking of selling in 2022, reach out to me, and lets talk about TECHNOLOGY, INVENTORY and TIMING!
