Vancouver home sales fall nearly 20 per cent in May as inventory continues to climb

In May, Vancouver experienced a significant drop in home sales, falling nearly 20% compared to the previous month. According to the Real Estate Board of Greater Vancouver (REBGV), this decline is primarily due to rising mortgage rates, which have dampened buyer enthusiasm. Sales in May totaled 2,983, a sharp decrease from 3,722 in April.

The housing inventory in Vancouver has been steadily increasing, contributing to this sales slump. May saw a rise in the number of homes available for sale, with 9,734 active listings, a 4% increase from April. This growing inventory is giving buyers more options and reducing the urgency to purchase immediately.

Experts suggest that the market is adjusting to the new economic realities, including higher borrowing costs. The average price of a detached home in Vancouver is now $1.87 million, a slight dip from previous months but still maintaining the city’s reputation for high property values.

Despite the sales drop, the overall market remains active. Realtors are adapting by offering more incentives to attract buyers. The REBGV emphasizes that while sales are down, the market isn't in free fall; it’s just stabilizing after a period of rapid growth.

Industry watchers predict that as the market continues to balance, there may be more price adjustments and a slower pace of sales. However, Vancouver's real estate market remains one of the most expensive in Canada, indicating long-term resilience despite short-term fluctuations.