May was another month of strengthening in the Vancouver real estate market. Once again, we moved away from the Buyer's Market of late 2022 and saw increasing demand along with very limited supply.
Sales rose to 985. This was a big increase (+34%) from last month, and well above (+9.6%) a year ago. This was is actually the first time since February 2023 that we have seen a year-over-year INCREASE in sales (985 vs 899).
It's also been a year since sales were actually above the 10-year average (April 2022). May makes the 4th month in a row that we've steadily moved closer to the 10-year average...and now just -1.75% below (985 vs 1003).
Meanwhile, there was no shortage of new listings. We saw a jump to 1806 New Listings in May. This was up (+36%) from last month but down (-7.8%) from a year ago. It was also basically right on the 10-year average (+0.7%).
Total Active Listings (supply) rose to 3,021. This was up (+3.3%) slightly from last month and signifcantly lower (-20.4%) than a year ago. It was also well below (-12.4%) the 10-year average.
With demand increasing in the last few months, and supply remaining low there has been sustained pressure on prices. In a single month, East Vancouver house prices rose 3.73%. Over the last 3 months, we have had a 9% increase in East Vancouver houses and a nearly 8% increase in Westside house prices in that same time frame.
I always find it fascinating how quickly our market can shift. Within just a handful of months, the picture of the Vancouver real estate market has entirely shifted. Prices are nearly back to the peak we had in the spring of 2022.
Where to from here?
We will need to watch closely how the "surprise" interest rate increase on June 7th, 2023 impacts the market. Already financial institutions are ratcheting up their lending rates....and there's talk of at least one more interest rate hike in July.
It's very possible that these increases could dampen the amount of demand we have had over the last three months...especially in combination with a historically slower sales/listing period a head of us...but our market never ceases to surprise the experts.
I suspect we shall see another very strong month a head of us (in relation to the past year) and then things may quiet down for the remainder of the summer.
As always, if you have any questions about the market or how to better position yourself I am always available for a conversation.