The number of new listings coming onto the Vancouver market has been on a decline, a trend that could alter market activity in the coming months, according to new insights.
So far in July, 1,692 properties have been sold in Greater Vancouver alongside 2,491 new listings, as per mid-month data published by Dexter Realty’s Broker and Chief Economist, Kevin Skipworth, last week. This comes as a “stark contrast” compared to the mid-point of last month, when 2,028 properties had sold and there were 3,405 new listings as of June 15th. Even at the mid-point of May, 2,183 properties had sold as 3,758 new listings came online.
Although sales are down by 17 percent from last month’s mid-point, Skipworth said that new listings are down 27 percent, leading to a decrease in the total number of active listings in the market.
“With this trend likely to continue, we could see total active listings drop below 10,000 to start September for only the second time in the last 25 years,” he wrote in the monthly email update.
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Skipworth reported that active listings for detached homes have declined by eight percent since the mid-point of June. This stands in contrast to the period between mid-May and mid-June when listings were up by two percent. Active listings also jumped 13 percent between mid-April and mid-May. Previously, sellers had been inclined to list in the active detached market, but this phenomenon “is very much slowing,” according to Skipworth, particularly in Greater Vancouver’s suburbs.
The same trend has also been observed in the attached segment of Vancouver’s market, which includes townhomes and condos. The number of attached listings has dropped by four percent in the last 30 days, previously up by five percent between mid-May and mid-June, and up by eight percent between mid-April and mid-May, Skipworth said.
Skipworth noted that the decline in new listings is diminishing an already-low active listing count across Metro Vancouver. Homebuyers are continuing to take advantage of low interest rates, and housing demand for returning post-secondary students this fall — both on the resale and rental side — is increasing.
“Sales in July will once again be less than 4,000 for the month, but likely still at a level that is above average for July and only slightly down from June,” said Skipworth.
“All things considering, there is still strong activity in the real estate market but that could be hampered by the lack of listings as we move through the next month and a half,” he added.
Heading into the remainder of the summer, Skipworth said that townhomes are the most sought-after property type in the market with very limited supply.
The sales to listings ratio is currently set at 117 percent in Port Moody, with more sales than new listings reported so far in July. The number of active listings in North Vancouver has also dropped to its lowest point since March, which Skipworth anticipates will create a competitive September market when buyer engagement grows. Similarly, New Westminster is on track to have its strongest sales month since March, but the number of new listings would set this community up for a competitive September as well.