Vancouver real estate is known for excess, but that’s usually not in reference to inventory. Greater Vancouver Realtors (GVREB) data shows prices nearly hit a 5-year low in April. The market was lucky enough to avoid a Toronto-style correction until this point. However, weak demand and soaring inventory are sending a warning that its luck may have run out.
Vancouver Real Estate Prices Fall To 56 Month Low
The price of a typical home across Greater Vancouver.
Source: CREA; GVREB; Better Dwelling.
The price of a typical home across Greater Vancouver slipped 0.6% (-$6.6k) to $1,098,000 in April, reversing March’s advance. Prices are now 6.9% (-$81.4k) lower than last year, and 12.4% (-$154.8k) below the record high set exactly 4 years ago.
Vancouver Home Sales Were The Third-Weakest In 25 Years
Greater Vancouver existing home sales, April.
Source: CREA; GVREB; Better Dwelling.
Weaker demand played a role in pushing prices lower. The board reported 2,110 sales in April, only 2.5% lower than last year but 22.9% below the 10-year average. It marks a 6-year low for the month, but it’s only been lower twice in the past 25 years—2019 and 2020. Aside from that, it’s unusual to see such weak demand across the region.
Vancouver Real Estate Inventory Is Nearly 38% Higher Than Normal
New sellers also pulled back last month with 6,684 new listings, 2.4% lower than last year. A smaller drop compared to sales, but enough to boost inventory to 16,236 active listings, up 0.2% from last year. It may not sound like a big deal, but Greater Vancouver is notorious for its lack of inventory. Active listings sit a whopping 37.9% above the 10-year average.
“Prices across all segments remain relatively flat month over month as inventory levels remain sufficient to keep price escalation at bay,” explains Andrew Lis, chief economist at the board. “But with the detached segment picking up steam heading into the full swing of spring, it may only be a matter of time until the multi-family segments follow suit, which would slowly draw down standing inventory levels unless a surge of sellers come to market with their properties.”
It’s an optimistic take considering the sales-to-listings ratio for detached homes was just 11.3% last month. At that level, the industry considers the segment to be in excess supply and expects prices to fall. It’s unclear where the board’s position came from. Perhaps they wrote the release before the data was finalized?
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