Stats from the May Real Estate Board of Greater Vancouver showed that the market has slowed, though it is still quite hot. May’s sales were 27.7% above the 10 years May average even though it is a 13% decrease from April.
The listing is growing faster than the sales, so there is less upward pricing pressure. The total number of homes listed for sale is 10.5% higher than May 2020 and 7.1% higher than April 2021. The lower sales-to-active listing ratios also reflects the decrease in upward pricing pressure. For May it was 29.8% for detached homes, 53.8% for townhomes and 43.5% for apartments. The month before the ratios were respectively 37.4%, 70% and 51.5%. While lower these are till high numbers. Any time the ratios stay above 20%, there is upward pricing pressure. In May prices for detached homes went up 1.7%, apartment homes went up 1.2% and attached homes went up 1.8%.
Both RBC and BMO revised their Canadian real estate market outlook. Their worse case scenario got worse but their best case scenario got better. As a result, the spread between the worse and best case widen. What does this mean? They are more uncertain then ever of the market ahead! But on a more positive note, both their base cases, the scenario that is most probable, has price increases revised upwards.
Have a great month and don’t forget Father’s Day!
Dads need love too.
