August 2022 Metro Vancouver Real Estate Market Update

As we transition from summer into fall, the real estate market in Metro Vancouver continues to evolve amidst changing economic conditions. The latest data from the Real Estate Board of Greater Vancouver (REBGV) reveals a quieter summer season, with reduced activity among both buyers and sellers, reflecting a shift towards a more balanced market.

Market Snapshot for August 2022

In August, residential home sales across Metro Vancouver totaled 1,870—a 40.7% decrease from August 2021 and a slight 0.9% drop compared to July 2022. While lower activity levels have been a recurring theme this summer, they remain 29.2% below the 10-year average for August.

New listings have also slowed, with 3,328 properties added to the market—a 17.5% decrease compared to August 2021 and 16% fewer than July 2022. However, the total number of active listings stands at 9,662, representing a 7.3% increase year-over-year.

The sales-to-active listings ratio for August was 19.4%, indicating that while the market is not in a seller’s territory overall, specific segments—particularly townhomes (25.3%) and apartments (24.8%)—continue to outperform detached homes (12.2%).

Key Insights for Burnaby, New Westminster, Vancouver, and the Tri-Cities

Burnaby:

• Detached home sales in Burnaby reached 80, marking a decline of 25.9% compared to last month.

• Apartments, a core housing type in Burnaby, saw 244 sales, maintaining relative stability.

• The benchmark price for detached homes in Burnaby North was $1,962,000, with a 5.5% drop over three months.

New Westminster:

• Detached home sales held steady at 26, consistent with July, though significantly below the historical average.

• Apartments, with a benchmark price of $651,000, experienced a modest 1.6% price drop month-over-month but remain up 13.9% year-over-year.

Vancouver East and Vancouver West:

• Vancouver East's benchmark price for detached homes was $1,794,700, marking a 1.6% decrease from July.

• Vancouver West apartments, a dominant property type, had a benchmark price of $829,700, reflecting a 1.7% decrease over the previous month.

Tri-Cities (Coquitlam, Port Moody, and Port Coquitlam):

• Port Moody continues to demonstrate resilience, particularly in the townhouse market, with benchmark prices increasing by 4.1% over six months to $1,096,600.

• Apartments in Coquitlam saw a modest decrease of 1.7% month-over-month, with a benchmark price of $669,200.

Price Trends and Buyer Behavior

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver was $1,180,500—a 7.4% increase from August 2021 but a 2.2% decline compared to July 2022.

With inflationary pressures and rising interest rates, buyers and sellers are taking a more cautious approach. As market conditions stabilize, preparation and strategy have never been more important. For sellers, ensuring your home is positioned attractively in this evolving market is crucial. For buyers, understanding financing options and long-term trends can offer opportunities amidst shifting dynamics.

A Changing Landscape

The slowdown in sales activity aligns with the broader economic landscape, where rising interest rates and inflation have tempered demand. For sellers, this represents an opportunity to refine marketing strategies and appeal to motivated buyers. For buyers, the cooling market could mean more choices and less competition.

Ready to Navigate the Market?

Whether you’re considering selling your home or exploring buying opportunities, understanding the current market climate is essential. Contact me today for personalized insights and strategies tailored to your goals.