There may be more this summer than the usual sun, sea and sand.
For potential buyers of homes in Metro Vancouver, this could mean the arrival of a balanced housing market.
A new report from real estate marketing firm Rennie suggests it’s possible.
“Maybe – just maybe – we’ll find balanced market conditions just in time for the summer,” says de rennie review that came out on Wednesday (May 11).
A balanced market means that sellers and buyers are on an equal footing.
To explain, it involves a sales-to-listings ratio between 12 and 20 percent.
That may not come this summer for sure, but there are signs that should give some hope to potential buyers.
“Early returns for May show subdued sales, similar to April, as inventory continues to grow,” the Rennie report said.
What was April 2022 like in the markets covered by the Greater Vancouver and Fraser Valley real estate boards?
The rennie review said sales totaled 4,826 last month, down 30 percent from March and 38 percent from April 2021.
“Having noted this, we would be remiss if we did not also point out that both March 2022 and April 2021 posted atypically high sales totals; indeed, compared to the average of the last ten years in April, last month’s turnover was only 1% lower.”
Meanwhile, the supply of new homes is increasing.
“It was the fourth consecutive monthly increase in supply, although overall inventory remains relatively limited: the 13,475 homes for sale at the end of April are still 14% below the April 2021 level and 25% below the average for the past ten years in April.”
Also, the sales-to-listings ratio in April fell from 59 percent in March to 36 percent.
This means that the “market is still tilted in favor of sellers”.
However, “conditions have improved significantly for buyers to the extent that they have a wider range of housing options to choose from”.
“So it can be said that market conditions have shifted – moderated, more emphatically,” the rennie review said.