The Vancouver Life Real Estate Podcast Vancouver Real Estate Market Update for May 2023
The May 2023 Vancouver Real Estate numbers are in and in this episode I’m going to share the most important data, give my feedback on why I believe prices are doing what they’re doing, and offer my predictions into what you can expect to see happen in the upcoming months.
Home sales reached an impressive 3,411 homes sold. This marks a significant 16% increase compared to May 2022, making it the fourth consecutive month of sales growth. Interestingly, May 2023 recorded the highest sales volume in the past 13 months, surpassing even the end of the record-breaking Red Hot run in April 2022 when the overnight rate was at 1%. It's worth noting that January sales were at a mere 1,032, but since then, they have tripled in number. Surprisingly, January sales were even lower than those in April 2020 during the peak of the Covid-19 pandemic. Although May's sales were 1.5% below the 10-year seasonal average, the demand remains strong and homes continue to sell despite historically low inventory levels and a 20-year low in new listings.
There were 5,661 new listings in May 2023. While this represents an 11.5% decrease compared to the previous year, it marks the fifth consecutive month of increased new listing amounts. In fact, May 2023 recorded the highest number of new listings in a year. These figures translate to a modest 4.3% decline below the 10-year seasonal average, making it almost a "normal" month for new listings. The intriguing question arises: What factors are now motivating people to list their properties when they didn't do so in March or April?
Despite a 12-month high in new listings, the overall inventory only increased by 214 units or 2.5%. This marks the sixth consecutive month with inventory remaining below 9,000 units, signifying a relatively flat trend. Compared to May 2022, the inventory is 22% lower, and it stands 25% below the 10-year average, without even accounting for population growth.
The HPI Price saw an $18,000 increase month over month, resulting in a 1.3% rise. The average price now stands at $1,188,000, marking the fourth consecutive month of price increases. Since January, prices have risen by 7%, equivalent to $76,600. However, it's important to note that prices are still 5.6% lower than May 2022. The HPI (House Price Index) indicates a 6.5% decrease from the peak recorded in April 2022, but it is considered a lagging indicator. To gain a more comprehensive understanding of the market, it is recommended to look at the following metrics.
Turning to median prices, we see a $10,000 increase to reach $980,000. This marks the fifth consecutive month of price increases and a substantial $110,000 surge since December 2022. Furthermore, it is the highest median price in the past 11 months, with only February, March, and April of 2022 surpassing it. The median price currently stands at a mere 2% below the all-time high.
The average price also experienced growth, rising by $14,000 to reach $1,312,000. This marks the fourth consecutive month of price increases, with a $145,000 rise within the last four months alone. The average price remains relatively close to the peak, standing at only 2.5% below it.
Wrapping up, it's clear that the Vancouver real estate market remains hot, with all metrics pointing towards continued growth. Stay tuned for the upcoming Bank of Canada announcement on June 7th, where interest rate updates will be provided.
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