After reaching record setting levels for many North Shore property types, last year home sale activity has returned to more typical, seasonal levels this Spring due in large part to rising interest rates.
On the North Shore, REALTOR®s registered 287 North Vancouver and 69 West Vancouver home sales on MLS® in May. This is a decrease of -22.3% and -21.6% respectively, from this time last year and is +28% above North Vancouver’s 10 year sales average whereas down -13% from West Vancouver’s 10 year sales average.
On the supply side, 473 and 235 homes were newly listed on MLS® last month for North Vancouver and West Vancouver respectively. That is a decrease of -20.1% and -8.9% for North Vancouver and West Vancouver respectively compared to last year (year over year) and similar numbers from last month (April 2022) for both NV and WV, 468 and 232 respectively.
This brings the total number of homes listed for sale today in North Vancouver to be 589 and 550 in West Vancouver.
With interest rates rising home buyers are taking more time to make their decisions in today’s housing market. This is allowing for listings to accumulate. With the supply of homes for sale on the rise, we have begun to see upward pressure on home prices to relent. The benchmark price (MLS HPI Benchmark Price) for all housing types in North Vancouver is $1,475,700 and West Vancouver $2,898,100. This is up +15% and +6.3% respectively, over this time last year and virtually unchanged from last month which was $1,481,000 for NV and $2,840,000 for WV.
Where home prices go next will depend on housing supply. With today’s demand, housing supply totals needs to more than double to bring the market into balance territory. We base this conclusion on our Sales-To-Active Listings Ratio (SAR). This ratio measures the homes available for sales against the number of homes sold throughout the month. When this ratio dips below 12% for a sustained period, indicates supply is outpacing demand and prices typically decline. When it surpasses 20%, demand is outpacing supply and prices typically increase.
The month ended with a ratio of 54% suggesting a seller’s market for North Vancouver and 12% for West Vancouver edging on balanced, buyer market territory. By property type, North Vancouver single family homes, townhomes and apartments are at SAR of 35%, 59% and 72% respectively and West Vancouver 10%,16% and 20% respectively.
Homebuyers have been operating in a frenzied environment for much of the past two years. This spring is providing a calmer environment in some areas of the North Shore with fewer multiple offer situations which is allowing Buyers to explore their housing options, understand the changing mortgage market and do their due diligence.
Whether you are buying or selling in this market reach out to [email protected] to navigate this shifting property market!
