The number of units sold in Greater Vancouver in May fell almost 10% year-over-year, from 4,910 units last year to 4,425, according to British Columbia Real Estate Association data released June 13.
Over the same period, prices have inched upward. The average selling price was $1,110,376 in the month, up more than 5% compared with May 2016.
Vancouver is not the only B.C. city that saw sales drop but prices increase. Overall, across the province, there were 12,402 units sold in the month, down almost 8% compared with 13,459 units last year. The average price increased just over 4% over that period, to $752,536. The upward price pressure across the province is due to a dwindling supply; in May, there were 28,404 active listing, down more than 11% year-over-year.
“Market conditions [across B.C.] have tightened considerably this spring as an upturn in consumer demand has not been accompanied by a rise in homes listed for sale,” said BCREA chief economist Cameron Muir. “The supply of homes for sale in the province has fallen 50% over the past five years.
“The entire southern portion of the province is experiencing a shortage of housing supply, which makes continuing upward pressure on home prices inevitable, at least in the near term.”
Total Vancouver sales were down more than 5% over the year, reaching just over $4.9 billion, compared with almost $5.2 billion last year. Provincially, home sales fell 4% to $9.3 billion.