Vancouver-area home sales rebounded in May, real estate board says
The Real Estate Board of Greater Vancouver (REBGV) says May home sales increased 15.7 per cent compared to the same month a year ago as average prices also rose.
"Our forecast projected prices to be up modestly in 2023 by about two per cent at year-end," said Andrew Lis, REBGV's director of economics and data analytics, in a news release.
"Instead, Metro Vancouver home prices are already up about six per cent or more across all home types at the midway point of the year."
The composite benchmark price for all residential properties in Metro Vancouver was $1,188,000 last month, down 5.6 per cent from a year ago but up 1.3 per cent from April.
There were 3,411 residential home sales in the region in May 2023, which is a 1.4 per cent decline from the 10-year seasonal average but nearly 500 more sales compared to units that moved in May 2022.
By comparison, in April, home sales slid 16.5 per cent compared to the same month in 2022.
Still, as of April of this year, the number of listings remained low compared to other years, meaning consumer demand is pushing up prices.
There were 5,661 detached, attached and apartment properties newly listed for sale in Metro Vancouver in May 2023, an 11.5 per cent decrease compared to the 6,397 homes listed in May 2022 and 4.3 per cent below the 10-year seasonal average, said the REBGV.
More buyers than sellers
"You don't have to squint to see the reason prices continue to increase," said Lis. "The fundamental issue remains that there are more buyers relative to the number of willing sellers in the market.
"This is keeping the number of resale homes available in short supply."
The board said that mortgage rates, elevated after eight consecutive hikes were carried out, also continue to hold back market activity.
REBGV ideas to improve affordability
The May numbers released by the REBGV on Friday come a day after it announced a series of recommendations it made to a provincial legislative committee that seek to improve housing affordability in B.C.
The REBGV's proposal includes recommendations for an overhaul of the Property Transfer Tax (PTT), which it says has not changed in 36 years.
It wants the PTT removed on any home, new or resale, worth less than $750,000.
Currently, the tax rate is one per cent of the fair market value up to and including $200,000, two per cent for homes above $200,000 and three per cent for homes worth more than $2 million.
Other recommendations include changes to the proposed anti-flipping tax and convincing the federal government to exempt new not-for-profit rental developments from paying GST.
