The Vancouver Life Real Estate Podcast Vancouver Real Estate Market Update for June 2023
The real estate market experienced notable trends and shifts in June 2023. This episode focuses on key metrics for the month of June. We take a look at total sales, new listings, inventory, the current sales-to-active ratio, and pricing trends. By examining these factors, we gain insights into the current state of the market and can make informed projections for the future.
In June, the total sales reached 2,988 units, marking a 21% increase compared to the same month in the previous year. However, sales experienced a significant decline of 14% from the previous month, making it the first decrease in five months. A common theme we see in June is a typical summer slowdown, which was likely exacerbated by a surprise rate hike and the heightened anticipation of another hike the following week. Overall, the total sales were 8.5% below the 10-year average; however this does not reflect the change in pricing we’ve seen so far this year. This downward trend indicates a temporary cooling of the market that we tend to see in the summer months.
The Home Price Index (HPI) continued its upward trajectory for the sixth consecutive month, increasing by $15,000 or 1.3% to reach $1,203,000 in June. This milestone marked the first time in 12 months that the HPI surpassed the $1.2 million mark. Throughout 2023, the HPI has experienced a significant increase of $90,400, representing an 8% rise. However, when compared to June 2022, the HPI was down 2.4%, and it currently sits 4% below the peak reached in April 2022. The lagging nature of the HPI suggests that it is essential to examine other metrics for a comprehensive understanding of the market.
The median price experienced a decrease of $23,000 to $957,000 in June, marking the first decrease in six months. Similarly, the average price declined by $41,000 to $1,270,000, the first decrease in five months. Projections for the future indicate a flat HPI, with a potential 1% drop by the end of August. The median and average prices are expected to remain stable. However, a rate hike could extend the downward trend. It is worth noting that low inventory remains a significant factor in keeping prices buoyant.
The HPI continued to rise, reaching a new milestone, but lagged behind previous year figures and the peak in April 2022, not to mention this is a lagging price indicator. Median and average prices experienced their first decreases in several months. Looking ahead, the market will continue to stabilize, with the HPI remaining flat and a potential 1% drop by the end of August. However, the trajectory may be influenced by external factors such as another rate hike. The foundation of low inventory is likely to support price stability in the coming months despite what we could see from the BoC.
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