After a hot game, the Vancouver housing market finally reverses the game.
According to the latest market figures from the Real Estate Board of Greater Vancouver (REBGV), after reaching record-setting levels by 2021, real estate transactions have returned to normal levels at Metro Vancouver with low prices this spring.
REBGV says rising interest rates are a major cause.
The coastal city real estate board reports that the sale of residential real estate in the region reached 2,918 in May 2022, a significant decrease of 31.6% from 4,268 sales recorded in May 2021, and a 9.7% decrease from 3,232 homes sold in April 2022. In addition. , last month’s sales were 12.9% below the May 10-year sales average.
“As interest rates rise, home buyers take more time to make their decisions in today’s real estate market,” said Daniel John, Chairman, REBGV. “Real estate agents have been working in a busy area for the past two years. This spring offers a quiet environment, with a few multiple offers, allowing buyers to explore their housing options, understand the changing market for rental housing, and act on their own initiative. ”
There were 6,377 connected, attached, and residential buildings recently sold on Multiple Listing Service® (MLS®) in Metro Vancouver in May 2022. This is a decrease of 10.5% compared to the 7,125 houses listed on May 2021 and 4.4 % increase compared to April 2022, when 6,107 households were added.
The total number of houses currently on sale in the MLS® system in Metro Vancouver is 10,010, a decrease of 8.8% compared to May 2021 (10,970) and an increase of 13.8% compared to April 2022 (8,796). For all types of properties, the May 2022 sales to May 2022 sales ratio is 29.2%. In terms of type of buildings, the average is 18.3% in detached houses, 35.5% of urban housing, and 38.1% of apartments.
Very Small Rate Concentration Seen In Other Home Types
According to REBGV, analysts say that the decline in housing prices occurs when the rate drops below 12% over a long period of time, while housing prices often have an upward pressure when they exceed 20% in a few months. The MLS® Home Price Index which is the combined price of all residential properties in Metro Vancouver is $ 1,261,1001. This is expected to increase by 14.7% in May 2021 and decrease by 0.3% compared to April 2022.
“Increasing pressure on housing prices has begun to ease in the housing market over the past two months,” said John. “Where housing prices go will depend on the quality of housing. While we are beginning to see a modest increase in housing prices, we still need a double standard to bring the market closer to a more sustainable environment. ”
Real estate sales in May 2022 reached 793, a decrease of 44.1% from the combined 1,419 combined sales recorded in May 2021. The price of a separate real estate is $ 2,093,600. This is expected to increase by 15% from May 2021 and decrease by 0.4% from April 2022. Real estate sales reached 1,605 in May 2022, a decrease of 21.7% compared to 2,049 real estate sales in May 2021. is $ 779,700. . This is expected to increase by 15% from May 2021 and increase by 0.4% compared to April 2022.
The auction of housing attached in May 2022 was 520, a decrease of 35% compared to 800 sales in May 2021. The value of the attached house stand is $ 1,141,200. This is an increase of 21.5% from May 2021 and a decrease of 0.6% compared to April 2022.
The current nature of the Vancouver housing market is not the same as in Ontario, where housing prices have finally begun to decline, and the outbreak of the epidemic has subsided as much as it has.
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