Real Estate Market Update: May 2023 Insights

May 2023 Market Update

While the year started slower than usual, Metro Vancouver’s housing market update for May 2023 is showing signs of heating up as summer arrives, with prices increasing for the sixth consecutive month. “Back in January, few people would have predicted prices to be up as much as they are – ourselves included,” Andrew Lis, REBGV’s director of economics and data analytics said. “Our forecast projected prices to be up modestly in 2023 by about 2% at year-end. Instead, Metro Vancouver home prices are already up about 6% or more across all home types at the midway point of the year.”

The fundamental issue remains that there are more buyers relative to the number of willing sellers in the market. This is keeping the amount of resale homes available in short supply,” Lis said. “And in a surprising twist, MLS® sales in May snapped back closer to historical averages than we’ve seen in the recent past, despite mortgage rates being where they are now, and new listing activity having been slower than usual this spring. If mortgage rates weren’t holding back market activity so much right now, I think our market would look a lot like the heydays of 2021/22, or even 2016/17.”

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 3,411 in May 2023, which is a 15.7% increase from the 2,947 sales recorded in May 2022. Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.

We often find the statistics can be broad, and you might wonder “How does this relate to my home?” We have broken down the sales activity for Downtown Vancouver, East Van and the Westside in the hopes that you can better understand what’s really going on in your neighbourhood.

Downtown Vancouver: 

• Market Type: Sellers market at 27% sales ratio average (2.7 in 10 homes selling rate)
• Housing Prices: Homes are selling on average 1% below list price
• Most Active Price Band: $400,0000- $500,000 with average 67% Sales Ratio (Sellers market)
• Opportunity for Buyers: Homes minimum $5 mil, Coal Harbour and 3 bedroom properties
• Opportunity for Sellers: Selling homes in Downtown and up to 1 bedroom properties

Vancouver Westside: 

Detached Housing

• Market Type: Balanced market at 22% sales ratio average (2.2 in 10 homes selling rate)
• Housing Prices: Homes are selling on average 1% below list price
• Most Active Price Band: $2.5 to $2.75 mil with average 91% sales ratio (sellers market)
• Opportunity for Buyers: Homes minimum $7.5 mil, Cambie, Oakridge, Shaughnessy and min 5 bedroom properties
• Opportunity for Sellers: Selling homes in Mackenzie Heights and 3 to 4 bedroom properties

Attached Housing

• Market Type: Sellers Market at 44% Sales Ratio average (4.4 in 10 homes selling rate)
• Housing Prices: Homes are selling on average 100% of list price
• Most Active Price Band: $500,000 to $600,000 with average > 100% Sales Ratio (Sellers market)
• Opportunity for Buyers: Homes between $2.25 mil to $2.75 mil,  Cambie, Dunbar, South Cambie and min 4 bedroom properties
• Opportunity for Sellers: Selling homes in Kitsilano, University and up to 1 bedroom

Vancouver Eastside: 

Detached Housing

• Market Type: Sellers Market at 32% Sales Ratio average (3.2 in 10 homes selling rate)
• Housing Prices: Homes are selling on average 2% above list price
• Most Active Price Band: $1.5 to $1.75 mil with average 70% sales ratio (Sellers market)
• Opportunity for Buyers: Homes between $3 mil to $3.5 mil, Collingwood, Hastings, Main and up to 2 bedroom properties
• Opportunity for Sellers: Selling homes in Fraserview, Hastings Sunrise, Renfrew and 3 to 4 bedroom properties

Attached Housing

• Market Type: Sellers Market at 44% Sales Ratio average (4.4 in 10 homes selling rate)
• Housing Prices: Homes are selling on average 100% of list price
• Most Active Price Band: $400,000 to $500,000 with average 83% Sales Ratio (Sellers market)
• Opportunity for Buyers: Homes between $1.5 to $1.75 mil, Downtown, Strathcona and minimum 4 bedroom properties
• Opportunity for Sellers: Selling homes in Victoria and 2 bedroom properties

Get in touch with us today to better understand your unique situation and get honest advice on how your home fits within the overall picture. It’s important to ensure you’re getting the right advice with your best interests at heart.

Let’s chat over a complimentary coffee and see how we can help with any questions you may have!

This report data was captured on June 1, 2023  from the Real Estate Board of Greater Vancouver MLS®. Refer to our YTD reports for sustained periods of the Sales Ratio %. The accuracy and completeness of the information is not guaranteed. In providing this information SnapStats® or Resident Experts do not assume any responsibility or liability.