December 2022 Greater Vancouver Real Estate Market Update

As we closed out 2022, the Greater Vancouver real estate market reflected a year of transition and adjustment, primarily driven by the Bank of Canada's aggressive interest rate increases. December’s market activity remained subdued, highlighting a cautious sentiment among buyers and sellers in response to higher borrowing costs.

Market Highlights:

• Sales Volumes: Residential home sales totaled 1,295 in December, a significant 51.8% drop from December 2021 and a 19.8% decrease from November 2022. This figure was 37.7% below the 10-year December sales average.

• New Listings: A total of 1,206 homes were newly listed for sale, representing a 38% decrease from December 2021 and a 60.5% decline from November 2022.

• Benchmark Prices: The MLS® composite benchmark price for all property types in Metro Vancouver stood at $1,114,300, a 3.3% decrease from December 2021 and a 9.8% decline over the past six months.

Detached, Attached, and Apartment Segments:

• Detached Homes: Sales for detached properties reached 371, down 53.3% from December 2021. The benchmark price decreased 5.1% year-over-year to $1,823,300.

• Townhomes: A total of 222 townhomes sold, reflecting a 48.4% drop from the previous year. The benchmark price slightly dipped by 0.2% to $1,012,700.

• Apartments: Apartment sales reached 702, down 52% from December 2021, with a benchmark price of $713,700—showing a modest 1.7% increase year-over-year.

Key Trends:

1. Balanced Market Dynamics: The overall sales-to-active listings ratio was 17.5%, edging closer to a balanced market. Apartments led the way with a 21.7% ratio, followed by townhomes at 19.5% and detached homes at 12.3%.

2. Localized Performance: Burnaby and New Westminster experienced notable declines in sales volumes, while areas like Vancouver East and Port Moody saw relatively steadier activity.

3. Price Adjustments: While prices showed some declines across most segments, apartments demonstrated resilience with modest gains in specific areas, reflecting stable demand in the entry-level market.

Looking Ahead:

The market's focus in 2023 will likely center on buyer and seller adjustments to higher interest rates. The spring market, traditionally a period of increased activity, will be closely monitored for shifts in sentiment and participation. For now, cautious optimism prevails as buyers navigate affordability and sellers recalibrate expectations.