REBGV president Ashley Smith said: “High home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today.”
Home sale had increased 44.2% in May as compared to the previous month (April 2019) but compared with May last year, home sales had decreased 6.9% (total 2833 sales recorded in May 2018)
May 2019: Total 2638 home sales
April 2019: Total 1829 home sales
March 2019: Total 1727 home sales
February 2019: Total 1484 home sales
January 2019: Total 1103 home sales
As expected home sales had picked up in Spring but it had not reach the frantic heights as in past years (see graph below):
The Sales-to-Active Listings Ratio that reflects both home sales and inventory in May 2019 were as below:
The Sales-to-Active Listings Ratio for both townhomes and condominiums had reached 20% last month (May 2019). If the ratio surpasses 20% over several months, home prices generally go up according to analysts. It is a great time for buyers of all property types as there are more inventory to choose from and the our real estate market seemed to be very healthy (with no signs of a crash).
If we look at the Sales-to-Active Listings Ratio in different areas, for condominiums, we see a different types of market:
North Delta: 30.0% seller’s market
Vancouver East: 28.2% seller’s market
Coquitlam: 24.9% seller’s market
Surrey: 23.6% seller’s market
Metro Vancouver: 21.2% seller’s market
Burnaby: 19.7% balanced market
Vancouver West: 18.9% balanced market
Richmond: 14.9% balanced market
The Bank of Canada held its overnight rate at 1.75% which kept the bank interest rates at 3.95%. Unlike the central bank’s previous statements, there had been no mention of further increases as the economy had nearly ground to a halt at the beginning of this year.
To read the May 2019 stats report from the Real Estate Board, click here.