Home sale activity has returned to more typical seasonal levels

After reaching record-setting levels in 2021, home sale activity has returned to more typical seasonal levels in Metro Vancouver this spring due, in large part, to rising interest rates.Residential home sales in the region totalled 2,918 in May 2022, a 31.6% decrease from May 2021, and a 9.7% decrease from last month.

With interest rates rising, home buyers are taking more time to make their decisions in today’s housing market. This spring is providing a calmer environment, with fewer multiple offer situations, which is allowing buyers to explore their housing options, understand the changing mortgage market, and do their due diligence.

There were 6,377 properties listed for sale in Metro Vancouver in May 2022. This represents a 10.5% decrease compared to May 2021 and a 4.4% increase compared to April 2022.

Upward pressure on home prices has begun to ease in the housing market over the last two months. Where home prices go next will depend on housing supply. While we’re beginning to see modest increases in home listings, we still need housing supply totals to more than double to bring the market close to balanced territory.