May Sees Modest Increase In Home Sales
The Real Estate Board of Greater Vancouver (REBGV) May's housing report showed:
- residential home sales in the region totalled 2,638, a 6.9% decrease from the 2,833 sales recorded in May 2018
- It was 44.2% higher than the 1,829 homes sold in April 2019.
Total home sales for the month were 22.9% below the 10-year May sales average, and was the lowest total for the month since 2000.
Ashley Smith, REBGV president cited "High home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today"
Although new listings were added at slightly higher level than the month before, slower sales continued to add to the total listings.
Sales-to-active Listings Ratio
- For all property types: the ratio for May 2019 was 18%.
- For detached homes the ratio was 14.2%
- For townhomes it was 20% and 21.2% for condos/apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
HPI Benchmark Price
The recent months rate of price decline appeared to have slowed, partly due to many home sellers deciding to withhold their homes homes for sale. The more orderly decline in home prices in the past few months provided some confidence and hope to home sellers that the market may hold the home prices at currrent levels.
Now that the seasonally peak home buying and selling period had passed, the slower sales pace for July to September could add many more homes to the current supply, causing another round of price decline from late autumn to the end of January, 2020.
We will continue to monitor the market and report back on the housing market activities in the second half of 2019.