THE MAY VANCOUVER REAL ESTATE MARKET UPDATE
Months of Inventory – One of The Most Important Trend Lines to Watch
The Real Estate Board of Greater Vancouver (REBGV) saw a healthy increase of sales in May, with a final total of 2638, a 44.2% increase over April. Months of inventory decreased by -29.1% to 5.6 and the average price stayed steady at $1.01M. While the historical average price is about an -8% decrease from 2018, it is still an increase over 2017 numbers.
The total sales for May 2019 represents a 6.9% decrease from the 2,833 sales recorded in May 2018. But it’s the fact that listings only increased by 2.3%, which is a big slow down in new listings, that starts to paint the picture here.
Supply and Demand
We started this year with 10 months of inventory. It dropped to about 8 months until May when it saw this big drop down to 5.6 months. Anything between 4-6 months is a balanced market, so we’ve officially come out of a Buyer’s market and into the balanced zone overall.
What Does This Mean For You?
We will likely start to see prices level off in many segments of the market. Every segment and sub-area of the market have their own story to tell, but unless you’re in the very high end, single detached market you’ll likely be noticing a stabilizing of numbers moving forward. One month of data isn’t enough to be certain but, anecdotally, we were seeing this trend start a while before May.
The mortgage stress test should keep the market from getting too frothy any time soon. But the slowing of new inventory (thanks to developers – including big players like Ledingham MacAllister – putting a halt on some of their new developments (read here) will, later on down the road, very likely contribute to another round of increasing prices.
The Full Story – Including Your Area – in Detail
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