Here’s a fun little real estate update! Today, the Real Estate Board of Greater Vancouver released its Monthly Market Report for May, and home prices in Vancouver have actually fallen. We honestly couldn’t remember the last time we saw it happen, so we looked into it a little bit.
Turns out, this is the first time in well over a year that the ‘benchmark price’ of a home in Metro Vancouver has gone down. For reference, the benchmark price is basically what the MLS estimates a ‘typical’ home in a given area sells for, whether it’s detached, attached, or a condo.
May Market Report: 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 https://t.co/svavJDcxru#REBGV #vanre #marketupdate
— REBGV (@REBGV) June 2, 2022
And the May report reflects the first decrease in that price since November 2020, so really more like 1.5 years. We actually came super close to prices falling last August, when the price only increased by 0.1% month over month. But even still, that’s an increase.
Now, before you go running to the next showing, the fall is more like a stumble. According to the report, the benchmark price has only fallen by 0.3% from April, and is still up 14.7% from last May. Yeah, it’s not exactly a fire sale in the real estate world, but it’s a fun stat nonetheless.
The main culprit for home prices in Vancouver falling? Well, the REBGV is pointing mostly towards rising interest rates, which are apparently pushing buyers towards taking their time on home purchases, with fewer ‘multiple offer’ situations coming about. Even still, it could signal the beginning of a larger cooling off period for the real estate market in and around Vancouver, which we’re sure is music to many a prospective homeowner’s ears.