2022 Year-end Market Insights | REBGV

Metro Vancouver's housing market experienced a year of caution in 2022 due to rising borrowing costs fueled by the bank of Canada's ongoing battle with inflation.
Realtors registered over 28,900 home sales on the MLS in 2022.
A 34% decrease over 2021 and 13% below the 10-year average.
Sellers listed more than 53,800 homes on the MLS in 2022.
A 14% decrease compared to 2021 and 3% percent below the Region's 10-year average 2022 ended with about 7,400 homes listed for sale across the region.
Fight the recent increases to mortgage rates and the slowdown in sales activity.
Inventory levels remain Low by historical standards which has limited downward pressure on home prices.
One way we measure the relationship between supply and demand in our Market is the sales to active listings ratio.
This ratio measures the homes available for sale against the number of homes sold throughout the month.
This gives us a good rule of thumb to see if supply is keeping up with demand in typical market conditions when this ratio dips below 12 percent for a sustained period it indicates that.
Supply is outpacing demand and prices are more likely to decline when it surpasses 20 percent demand is outpacing supply and prices are more likely to increase 2022 ended with this ratio at 18% for all homes.
By property type the ratio is 12 percent for detached homes 20 for town homes and 22 percent for condos.
The MLS HPI Benchmark price for all housing types in Metro Vancouver sits at one million one hundred and fourteen thousand dollars. This is a three percent decrease over last year prices have declined about 10 percent over the past six months.
Looking ahead to 2023 the consensus among most economists and professional forecasters is that the Bank of Canada is likely near the end of the current interest rate tightening cycle mortgage rates may remain elevated for some time.
However as inflation remains a concern for the Bank of Canada limiting their ability to decrease the policy rate in the near term.
We'll watch the 2023 spring Market closely to see if buyers and sellers have adjusted to the higher borrowing costs and are participating more actively in the market.