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Vancouver housing market: Sales up 342% in April but show signs of cooling

Jessy Bains
·2 min read
A real estate for sale sign is pictured in front of a home in Vancouver, British Columbia, Canada, September 22, 2016. REUTERS/Ben Nelms
Vancouver detached home prices are up the most (REUTERS)

Greater Vancouver home sales shot up a stunning 342.6 per cent in April, compared to the same month last year, while prices are also up sharply.

But year-over-year comparisons from the Real Estate Board of Greater Vancouver don't tell the whole story of early signs of a housing market cool down.

"Our housing market has changed considerably from one year ago when COVID-19 concerns brought activity to a near standstill," said REBGV economist Keith Stewart.

"This was followed by a well-documented spike in home buyer demand across the region. So far this spring, we've seen a corresponding supply response from home sellers."

Compared to the previous month, sales actually fell 14 per cent and bidding wars subsided.

However, prices are still rising. The MLS Home Price Index is up by 12 per cent to $1,152,600 year over year and 2.6 per cent month over month.

Prices of detached homes are up the most compared to last year, with a 20.9 per cent jump to $1,755,500.

Attached homes were up the most compared to last month, with a 3.3 per cent increase to $900,900.

Housing supply and demand

Supply has been coming onto the market, but not yet at a sufficient pace to keep up with demand, helping push prices higher.

The number of newly listed homes was up 243.2 per cent, the highest new listing total ever for the month of April.

New listings fell 4.2 per cent month over month, but total listings were up 12 per per cent. Compared to last year, total listings are up 9.1 per cent.

"Record low interest rates, increased household savings, a strengthening economy and a continued focus on living space during the pandemic are all factors that are helping to bolster demand while steady price growth is encouraging more sellers to list their homes," said Stewart.

Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.

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