January 2023 Greater Vancouver Real Estate Market Update

The start of 2023 was marked by below-average home sales and persistently low inventory across the Greater Vancouver real estate market. According to the Real Estate Board of Greater Vancouver (REBGV), residential home sales in January totaled 1,022—a notable 55.3% decrease compared to January 2022 and a 21.1% drop from December 2022. This figure was also 42.9% below the 10-year January sales average.

Despite the slower start, the Bank of Canada’s decision to pause further interest rate hikes offers potential stability for buyers and sellers, signaling a cautious but optimistic outlook for the coming months.

Key Market Insights

1. Inventory Trends

   • January saw 3,297 newly listed properties—a 20.9% decrease compared to January 2022 but a significant increase of 173.4% from December 2022.

   • Total active listings rose slightly to 7,478, marking a 32.1% increase compared to January 2022 and a marginal 1.3% rise from December 2022.

2. Sales-to-Active Listings Ratios

   • Detached Homes: 10.2%

   • Townhomes: 13.4%

   • Apartments: 16.7%
     These figures indicate balanced market conditions across property types, though detached homes edged closer to a buyer’s market.

3. Price Movements

   • The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver stood at $1,111,400. This represented a 6.6% decrease from January 2022 and a 0.3% decrease compared to December 2022.

   • Detached Homes: Benchmark price of $1,801,300, down 9.1% year-over-year.

   • Apartments: Benchmark price of $720,700, down 1.1% year-over-year but up 1% from December 2022.

   • Attached Homes: Benchmark price of $1,020,400, down 3% year-over-year but up 0.8% from December 2022.

Regional Highlights

• Burnaby: Prices remained stable across property types, though sales activity was subdued.

• New Westminster: Benchmark prices showed resilience, especially in apartments, which saw a slight increase compared to December 2022.

• Tri-Cities (Coquitlam, Port Coquitlam, Port Moody): Market conditions varied, with Port Moody seeing a modest rise in prices for attached homes.

• Vancouver East and Vancouver West: Apartment sales remained the most active, while detached homes continued to see price adjustments.

Looking Ahead
The combination of low inventory and stabilized interest rates provides a foundation for potential market recovery as the year progresses. While year-over-year comparisons highlight significant price declines, these reflect adjustments that have already taken place, suggesting prices may have reached a plateau.

For buyers, the market presents opportunities, particularly in detached and attached homes where balanced conditions prevail. For sellers, customized strategies will be essential to achieve optimal results in this nuanced market.

Conclusion
January 2023 underscores the importance of navigating the market with a data-driven approach and professional guidance. Whether buying or selling, understanding these trends and their implications is key to making informed decisions in Greater Vancouver’s real estate landscape.