Metro Vancouver’s real estate market showcases its resilience as May records over 5,000 transactions, a milestone not seen since March 2022. Despite the unusual surge in activity during the late Spring market, this increase reflects buyers’ renewed optimism. In addition, they are displaying a remarkable willingness to navigate higher interest rates and elevated prices, underscoring their determination to enter the market and capitalize on the limited opportunities available.

The (Not So) Little Engine That Could

Rather than fizzling out, Greater Vancouver’s real estate market has continued to build steam, gaining momentum as we transition into the summer market. Prices continue to trend upwards – May marks six consecutive months of appreciating benchmark values. Residential home sales in the region reached 3,411 in May 2023, reflecting a 15.7% increase compared to May 2022. The market remains active despite a slight decline of 1.4% from the 10-year seasonal average.

Andrew Lis, REBGV’s director of economics and data analytics, expressed surprise at the significant price increase: “Our forecast projected modest price growth of around two percent for 2023. However, home prices in Metro Vancouver have already surged by approximately six percent across all property types at the halfway point of the year.”

The number of newly listed properties for sale in May 2023 decreased by 11.5% compared to the previous year, with a total of 5,661 detached, attached, and apartment properties listed on the Multiple Listing Service® (MLS®). The current inventory of homes listed for sale on the MLS® system stands at 9,293, representing a 10.5% decrease from May 2022.

The sales-to-active listings ratio for May 2023 is 38.4%, indicating a high demand relative to the limited supply of homes. Detached homes have a ratio of 28.5%, while townhomes and apartments show ratios of 45% and 45.5%, respectively. Historically, when the ratio falls below 12%, downward pressure on home prices is observed, while ratios above 20% indicate upward pressure.

Lis emphasized the supply-demand imbalance as the main driver of price increases: “The fundamental issue remains that there are more buyers than willing sellers in the market. This scarcity of resale homes continues to keep the supply short.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,188,000, indicating a 5.6% decrease compared to May 2022 but a 1.3% increase from April 2023.

Metro Vancouver Real Estate Market Surges with Renewed Buyer Optimism by MLA Canada