April 5, 2023 MARCH MARKS 50% INCREASE IN MONTH OVER MONTH RESALES IN METRO VANCOUVER

Metro Vancouver's resale market saw positive gains in overall sales activity and benchmark prices in March. In total, there were just over 4,000 resale transactions in Metro Vancouver, the highest recorded since May 2022. That is a 50% increase in resales month-over-month from February, exceeding the 27% increase typically observed. This momentum extended into the presale market, where we saw robust foot traffic and renewed demand in major submarkets. Even as the outlook of the broader economy remains uncertain, buyers are capitalizing on improving rate conditions by locking in presale products at today's values.

SUPPLY-DEMAND IMBALANCE PERSISTS, RESULTING IN A COMPETITIVE SALES ENVIRONMENT

2,535 resales were transacted in Greater Vancouver last month. Total sales were a 42.5% decrease from the 4,405 resales recorded in March 2022 and are 28.4% below the 10-year average. While sales have fallen, a lack of new inventory has increased the number of listings receiving multiple offers. In addition, buyers engaging in the current market are generally better financed and clearly understand what they can qualify for in the current rate environment.

While new listings (supply) momentum was positive, Greater Vancouver remains woefully undersupplied, seeing sales-to-listings increase from 23% in February to 31% in March. The tilted supply-demand equation relieved sellers after nearly a year of less-than-ideal listing conditions. Still, without adequate choice, homeowners wanting to purchase a new home will hesitate to list products on the market. As REBGV's director of economics puts it, "the chicken and the egg" supply dynamic experienced by our market will likely keep active listings low for the foreseeable future.

As in recent months, composite benchmark pricing in Greater Vancouver continues to trend upwards, increasing 1.8% from February and 2.6% since December.

FRASER VALLEY REAL ESTATE MARKET SHOWS PROMISE WITH SECOND CONSECUTIVE MONTH OF GROWTH

Like Greater Vancouver, the Fraser Valley is gaining speed with a second consecutive month of growth in sales. Though the 1,550 sales recorded in March were 25.0% below the 10-year average, the increasing volume is nonetheless promising.

On the supply side, new and active listings remain well below seasonally adjusted 10-year averages. For example, the 2,559 new listings in March represent a 32.0% increase from February but remain 44.1% below the previous year.

Overall, as conditions in the market have begun to stabilize, buyers in the Fraser Valley are returning while sellers remain hesitant. As a result, the sales-to-listings ratio, which had previously shifted into a balanced market in June of 2022, has now firmly transitioned back into Seller's market territory with an overall ratio of 34%. In addition, the shift has supported moderate price appreciation, with the HPI benchmark price for all product forms increasing by approximately 2.0% month-over-month.

VICTORIA REAL ESTATE BOARD SEES INCREASING SALES DEMAND DESPITE HISTORICALLY LOW INVENTORY

Victoria's market continues to mirror the Lower Mainland's. There were 590 resales in the VREB in March, representing a 29.2% decline from the same period in 2022 but a 28.3% increase from February 2023. Notably, resales are nearly double where they were in January. In addition, active listings increased by 8.9% from February 2023 and are 85.3% higher than in March 2022.