There may be more to this summer than the usual sun, sea and sand.
For prospective buyers of homes in Metro Vancouver, it could mean the arrival of a balanced housing market.
A new report by real-estate marketing firm rennie suggests it’s possible.
“Maybe—just maybe—we’ll find ourselves with balanced market conditions just in time for summer,” states the rennie review that came out Wednesday (May 11).
A balanced market means that sellers and buyers are on equal footing.
To explain, it involves a sales-to-listings ratio of between 12 percent and 20 percent.
That may not come this summer for certain, but there are signs that should give some hope for potential buyers.
“The early returns for May are showing moderate sales counts, similar to those in April, as inventory continues to expand,” the rennie report stated.
How did April 2022 look in the markets covered by the real-estate boards of Greater Vancouver and Fraser Valley?
The rennie review related that sales last month totalled 4,826, a 30 percent drop from March and 38 percent below April 2021.
“Having noted this, we’d be remiss if we didn’t also point out that both March 2022 and April 2021 posted atypically-high sales totals; indeed, compared to the past-decade April average, last month’s sales only came in 1% lower.”
Meanwhile, new home listings are rising.
“It was the fourth consecutive monthly increase in supply, though inventory remains relatively constrained overall: the 13,475 homes for sale at the end of April are still 14% below April 2021’s level, and 25% below the past 10-year April average.”
As well, the sales-to-listings ratio dropped to 36 percent in April from 59 percent in March.
This means that the “market is still tilted in favour of sellers”.
However, “conditions have markedly improved for buyers insofar as having a greater range of housing options to choose from”.
“It can be said, then, that market conditions have shifted—moderated, more pointedly,” the rennie review stated.