With interest rates and housing supply increasing North Vancouver home buyers are operating in a changing market place. Let’s take a closer look!
MLS® stats show North Vancouver had 174 home* sales in July 2022. This is a -30% decrease from this time last year (YOY) and is -20% below North Vancouver’s 10 year monthly home sale average.
On the supply side rising interest rates and inflationary concerns are making Buyers more cautious which is allowing listings to accumulate.
Our board stats shows NV sellers listed 298 homes on MLS® last month. That’s almost the same from last year’s number, 296 however -35% decrease from last month. This brings the total number of homes listed for sale at the end of July in North Vancouver to 563.
Looking at pricing, we are starting to see downward pressure on home prices, not unlike with West Vancouver.
North Vancouver MLS® HPI Benchmark Price for all house types is now $1,410,500. This is up +10% over this time last year and a -2% decrease from the month before, June 2022
This downward pressure is likely due to declining home buyer activity and not increase in supply. We base this conclusion on Sales-To-Active Listings Ratio. This ratio measures the homes available for sale against the number of homes sold throughout the month. The total inventory of homes for sale did increase month to month but the biggest impact on the ratio has been decline in sales.
In typical market conditions, when this ratio dips below 12% for a sustained period, it indicates supply is outpacing demand and prices typically decline. When it surpasses 20%, then demand is outpacing supply and prices typically increase.
Last month ended this ratio at 31% for all property types. While this typically suggests a sellers’ market, this ratio has been trending towards a balanced market for a few months now. By property type, townhome and apartments are at 26% and 46% respectively, while single family homes sit at 18%.
*home or homes includes detached homes, townhomes and apartments