The housing market in Metro Vancouver saw a continued slowdown in April, with fewer homes being sold compared to last year. This trend, which started earlier in the year, has opened up more chances for people looking to buy a home. Let's break down what happened.
Key Takeaways
- Home sales in April were down 24% compared to the same month last year.
- The number of homes listed for sale is significantly higher than the usual amount for this time of year.
- The market is currently in a balanced state, with stable prices and good opportunities for buyers.
April Home Sales Figures
In April, realtors recorded about 2,200 home sales on the MLS. This is a 24% drop from April of last year and is also 28% lower than the average number of sales for this period over the past decade. Even with better borrowing conditions, some buyers might be holding back because of worries about the economy, like potential US tariffs and the upcoming federal election.
What's Happening with Home Supply?
On the other hand, sellers put about 6,850 homes on the MLS in April. This is a small decrease of 3% compared to April 2024, but it's 20% more than the 10-year average. By the end of the month, there were around 16,200 homes available for sale across the region. This is a big jump – 48% higher than the usual number for April. In fact, it's the first time we've seen over 16,000 homes for sale since 2014.
Understanding Market Balance: The Sales-to-Active-Listings Ratio
A good way to understand the market is by looking at the sales-to-active-listings ratio. This tells us how many homes are selling compared to how many are available. Historically, when this ratio stays below 12% for a while, home prices tend to go down. When it goes above 20% for a few months, prices usually start to climb.
In April, this ratio for all types of homes was 14%, which indicates a balanced market. Here's how it broke down by property type:
- Detached Homes: 10%
- Attached Homes (Townhomes): 18%
- Apartments: 16%
Home Prices in April
The MLS HPI benchmark price for all homes in Metro Vancouver was $1,185,000 in April. This is a 2% decrease from last year. Looking at specific property types:
- Detached Homes: $2,220,000
- Townhomes: $1,120,000
- Apartments: $763,000
What This Means for Buyers
With prices staying steady, borrowing costs being low, and a balanced market overall, now is a good time for people looking to buy a home. There are more options available, and the market conditions are favorable for purchasers.
