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Metro Vancouver housing inventory “relatively tight,” according to Greater Vancouver Real Estate Board

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    Sales-to-active listing ratio holding at 17.6% in Lower Mainland

    Despite slowing real estate sales activity, available housing inventory remains “relatively tight,” according to the Real Estate Board of Greater Vancouver.

    The latest data for November 2022 show a 17.6% sales-to-active listings ratio. Analysts say that downward pressure on home prices tends to occur when the ratio dips below 12% for a sustained period.

    “From a long-term structural standpoint, the current pace of listings and available inventory remain relatively tight when considered against a backdrop of continued in-migration to the province,” said Andrew Lis, a director and analyst with the Real Estate Board of Greater Vancouver. “With the recently announced increase in federal immigration targets, the state of available supply in our market remains one demand surge away from renewed price escalation, despite the inflationary environment and elevated mortgage rates.”

    Real estate analysts have begun wondering if the bottom is in for the housing market in Canada after national data showed an 1.3% uptick in home sales in October. More than 60% of Canadian markets saw an increase and new listings rose for the first time in months as households adjust to the higher cost of borrowing.

    Still, Lis noted that sales activity in the Lower Mainland in November was below the 10-year average, as uncertainty around interest rates and inflation continue to weigh on the market.

    Residential home sales in the region totaled 1,614 in November 2022, a decrease from the 3,428 sales record in November 2021, and a 15.2% drop from the 1,903 sold in October 2022.

    “Heading into 2023, the market continues the trend of shifting toward historical averages and typical seasonal norms,” Lis said. “Whether these trends continue will depend on looming economic factors and forthcoming housing policy measures on the horizon, which hold the potential to reignite uncertainty in our market.”

    Are you looking to buy or sell a home? The legal experts at Clark Woods LLP are happy to assist with your real estate and conveyance needs. Call 604-330-1777 today to setup a consultation or visit our real estate page for more information.