Vancouver-area home sales rise in May: real estate board

The Real Estate Board of Greater Vancouver (REBGV) says home sales in May rose 15.7 per cent from a year earlier.

According to the REBGV, the Vancouver-area housing market is showing signs of heating up heading into the summer, as prices increased for the sixth consecutive month.

The board says sales in May totalled 3,411, which was 1.4 per cent below the 10-year seasonal average of 3,458.

The composite benchmark price for all residential properties in Greater Vancouver was $1,188,000 last month, down 5.6 per cent from a year ago but up 1.3 per cent from April.

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There were 5,661 new listings last month, an 11.5 per cent decrease compared with a year ago and 4.3 per cent lower than the 10-year seasonal average of 5,917.

“You don’t have to squint to see the reason prices continue to increase. The fundamental issue remains that there are more buyers relative to the number of willing sellers in the market. This is keeping the amount of resale homes available in short supply,” Andrew Lis, the REBGV’s director of economics and data analysis, said.

“And in a surprising twist, MLS® sales in May snapped back closer to historical averages than we’ve seen in the recent past, despite mortgage rates being where they are now, and new listing activity having been slower than usual this spring. If mortgage rates weren’t holding back market activity so much right now, I think our market would look a lot like the heydays of 2021/22, or even 2016/17.”

Fraser Valley sees increase in May listings

Meanwhile, the Fraser Valley Real Estate Board (FVREB) says the supply of homes up for sale jumped last month.

It says new listings “surged by more than 40 per cent over April,” though new listings in May 2023 were “just below” figures from the same month last year.

“Typically, we would see an influx of inventory earlier in the spring sales cycle,” said Narinder Bains, chair of the FVREB. “The series of interest rate hikes during the latter half of 2022 had many sellers and buyers in a holding pattern for most of the year. What we’re seeing now is a recovery and adjustment to the new financing landscape.”

The board says in addition to an increase in listings, there was also “healthy demand” last month, with a 10.1 per cent increase in sales processed reported over the month before.

FVREB CEO Baldev Gill says inventory “has been trending upwards since December 2022.”

“That said, with inflation tracking at elevated levels the potential for further rate hikes is very real. Buyers and sellers would be well-advised to work with real estate professionals to factor this into their decisions,” Gill said.