May in Metro Vancouver saw a lot of homes on the market, hitting a ten-year high for inventory. But, even with all those options, not many homes were actually sold. It's a bit of a mixed bag out there for buyers and sellers right now.
Home Sales Slow Down
Realtors reported 2,228 home sales in May. That's actually 19% less than last year and a pretty big drop, about 31% below the average for this time of year over the last decade. So, fewer people are buying compared to the usual.
More Homes Available Than Ever
On the flip side, sellers put 6,620 homes on the market in May. That's a 4% increase from May 2024 and 9% more than the ten-year average. By the end of the month, there were about 17,100 homes listed for sale across the region. This is a huge 46% above the usual number for May. With so many homes available, sellers are starting to be more flexible with their prices, which is good news for buyers who now have more room to negotiate.
Key Takeaways
- Sales are down: Fewer homes were sold in May compared to last year and the ten-year average.
- Inventory is up: More homes were listed for sale than in recent years, reaching a ten-year high.
- Buyer negotiation power: High inventory means sellers are more willing to negotiate on price.
Understanding the Market Balance
We can get a sense of supply and demand by looking at the sales to active listings ratio. This ratio compares the number of homes available for sale to the number of homes that actually sold during the month.
Historically, when this ratio drops below 12% for a while, it usually means prices might go down. On the other hand, if it stays above 20% for a few months, prices tend to go up.
Right now, the market is pretty balanced. In May, this ratio was 13% for all types of homes. Looking at specific property types:
- Detached homes: The ratio was 10%.
- Attached homes (like townhouses): The ratio was 17%.
- Apartments: The ratio was 15%.
What About Prices?
The MLS HPI benchmark price for all homes in Metro Vancouver in May was $1,177,000. This is 3% less than it was at this time last year. Here's how prices broke down by property type:
- Detached homes: The benchmark price was $1,997,000.
- Townhomes: The benchmark price was $1,160,000.
- Apartments: The benchmark price was $757,000.
Looking Ahead
So, what's next for the Metro Vancouver housing market? So far this year, home sales have been some of the slowest we've seen in the last ten years, pretty similar to what happened in 2019 and 2020. Back then, sales picked up quite a bit in the second half of the year. It's the big question whether 2025 will follow that same pattern. For more details on the housing market, check out the market watch section on our website.
