Vancouver real estate is seeing the largest drop in new listings in the country. Numbers from the Canadian Real Estate Association (CREA) show the city’s decline is the highest ratio of any urban center. The drop is followed by a bigger drop in sales however. This is dragging the sales to new listings ratio closer to a balanced market.
New Listings Drop Over 14% In Vancouver
Vancouver is the urban centre with the highest drop in new listings. The region had 35,395 new listings year-to-date ending in July, a 14.1% decline compared to last year. This makes it the largest relative drop across Canada.
Worth noting that the second largest decline is currently in the surrounding region. Fraser Valley, a suburb surrounding Vancouver, has 19,372 year-to-date ending July. This is a 13.9% decline from the same time last year.
Sales To New Listings
New listings mean nothing, unless you’re comparing them to sales. So let’s look at the sales to new listings ratio. This is a basic indicator used by the Canadian real estate industry to help determine the rate that inventory will accumulate. A balanced market is a ratio of 50%. Above that, and it’s moving towards a sellers market, increasing pricing pressure. Below 50%, and it’s moving towards a buyers market, and pricing pressure lowers. There’s a few exceptions, but this is how the indicator is used in its most basic form.
Vancouver’s Sales To New Listing Ratio Is Dropping
New listings are dropping, but not as fast as sales are in the region. Vancouver’s sales to new listings ratio is at 64% year-to-date, a decline of 8.1% from the same period last year. This makes it the fifth fastest falling sales to new listings ratio of any urban area across Canada. Despite the drop, it’s still in the realm of sellers market for the year. Still worth noting that the rapid decline could flip the market to a buyers market very quickly. That is, if buyers recognize the increasing advantage mounting in their corner.
Vancouver’s seeing the fastest decline in new listings across the country, but it’s also seeing sales decline faster than listings. The resulting higher inventory levels do mean expect decelerated price growth. Although Vancouver seems to be scary good at managing supply and demand when it comes to listings.