Here’s what’s happened in May:
While home sales and listing activity remained above our long-term averages in May, conditions moved back from the record-setting pace experienced throughout Metro Vancouver in March and April of this year. It is still a tight market but we are starting to see cooling in sales as prices reach an unsustainable level.
Real estate sales may start to take a back seat to post pandemic focus back to a new normal!
With sales, not prices, easing down from record peaks, a revised mortgage stress test that reduces the maximum borrowing amounts by approximately 4.5 per cent, and the average five-year fixed mortgage rates climbing back over two per cent since the beginning of 2021, we’ll pay close attention to these factors leading into the summer to understand what affect they’ll have on the current market cycle. In this market at the higher price points, stress tests are not a huge hurdle as some lenders may ease debt service ratios to offset the impacts of the stress test on the borrower!
Focusing on the Richmond Single Family Market:
Prices: May shows a continued trend of a sellers’ market with an average sales ratio of 21% -9% from April and -26% from March.
Most Active prices bands decreased to $1.00 - $1.25m with a 114% rales ratio, $1.250 - $1.50 with -18% sales ratio and $1.5 to $1.75m with -7% sales ratio
Average sale price: remained same from $1,751,000 to $1,742,000 from April 2021, and the $/sf +6% from $681/sf to $720sf.
No. of Sales: Not surprisingly, we are starting to see a sharp drop in sales -24% with sales decreasing further from 170 - 130, - 61% from April when sales totalled 213.
Top 3 neighbourhoods selling well are Steveston South, Terra Nova and Westwind
Condos:
We are seeing a sellers’ market with a 40% sales ratio -16% from last month.
Most activity has increased from $400,000 to $500,000 to $500,000 - $700,000.
Average sale price: -3% in the last month from $709,000 to $685,000 and we saw a +6% change in $/sf from $684/sf to $725/sf.
Top Performing Neighbourhoods: Westwind, Saunders, and McLennan North
Keeping an eye on Court Ordered Sales and Foreclosures, there are 25 house (-4 from April) and 37 condo listings (+4 from April)
Interesting Reads:
https://globalnews.ca/news/
I hope you find this helpful, but should you have any questions please don’t hesitate to ask.
My best,
Shali