Statistically speaking, the market for detached homes in Greater Vancouver has balanced.
Based on the recent report by the real-estate board, the sales-to-active-listings ratio for single-family homes in May 2022 shifted to 18.3 percent.
The general rule is that a market is balanced when the ratio is between 12 percent and 20 percent.
The market favours sellers when the ratio is more than 20 percent, which means prices are hot.
Buyers get the upper hand when the ratio is less than 12 percent, which translates to prices getting cold.
The Greater Vancouver market covers Vancouver, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, West Vancouver, and Whistler.
The 18.3 percent sales-to-active-listings ratio in May 2022 marks a significant change from previous months.
In April, the ratio was 25.3 percent; March, 38.8 percent; February, 34.9 percent; and January, 28 percent.
The real-estate board has reported that sales of detached homes in the region in May 2022 totalled 793.
The number represents a 44.1 percent decline from the 1,419 detached sales in May 2021.
The benchmark price for a detached home last month was $2,093,600.
The price marks a 0.4 percent decrease from April 2022, and a 15 percent increase from May 2021.
Meanwhile, the sales-to-active-listings ratio for townhomes was still in favour of sellers at 35.5 percent.
For condos, it was 38.1 percent, meaning sellers have the upperhand.
For all property types, the board reported that the sales-to-active-listings ratio for May 2022 was 29.2 percent, still a seller’s market.
As for the Fraser Valley market, the ratio for all property types in May was 22 percent.
Meanwhile, the benchmark price for a detached home in the region was $1,712,500.
This May 2022 price marks a 2.4 percent decrease from April 2022, and a 26.2 percent increase over May 2021.
The Fraser Valley market covers Abbotsford, Langley, Mission, North Delta, Surrey, and White Rock.
The real-estate markets have calmed in the face of rising interest rates.
The Bank of Canada has increased its interest-setting rates three times this year, and it has indicated more increases through this year.
Vancouver-based Dexter Realty released its monthly report about the housing market on Monday (June 6).
“We are not statistically into a buyer’s market in Metro Vancouver but, for all the right reasons, this is when smart buyers are becoming active,” states the report prepared by company partner and managing broker Kevin Skipworth.
Skipworth noted that the situation is “not technically” a buyer’s market because of the current overall sales-to-active-listing ratio of 29.2 percent and 22 percent in Greater Vancouver and Fraser Valley, respectively.
But “for those with their eyes wide open are seeing the best buyer conditions in at least three years”.
“For all buyers, however, the increased supply of resale listings, flatlining prices and a lack of new housing starts means that right now is the time to be seriously shopping the market and negotiating the best deal possible,” Skipworth wrote.
The realty executive added, “Buyers are not yet in the driver’s seat, but the market is steering in that direction.”