MNI BRIEF: Vancouver YTD Home Sales Among Lowest In Decade

Vancouver home sales so far this year are the lowest in a decade outside of the pandemic, and higher inventories are pushing prices down in what had been one of Canada's most overheated markets.

From January to May there have been 9,802 residential properties sold, according to Greater Vancouver Realtors data released Tuesday. That’s down 14% from 11,378 in the same period last year. The decline for May compared with a year earlier was even steeper at 18%. 

The weakness suggests the hit to consumer confidence from the trade war with the U.S. is a stronger force than the seven Bank of Canada rate cuts between June and March. Vancouver prices are the highest among major cities in Canada with a detached home averaging CAD2 million, making them unaffordable for many younger families. (See: MNI INTERVIEW: Tariff Uncertainty Means Lower BOC Rates- Ragan)

Even with a 26% jump in homes for sale from a year ago, price declines have been modest, which is helpful to regulators concerned about financial strain on highly indebted households. The realtor group's price benchmark declined 0.6% on the month and 2.9% from a year ago. “Some buyers are still sitting on the sidelines or are being especially selective,” said Andrew Lis, GVR’s director of economics.