June 2023 – Lower Mainland Monthly Update (REBGV & FVREB)
At only 2.9 Months of Inventory, Prices are expected to Rise.
The most reliable indicator of market prices is the Sales to Active Listings Ratio (SAL). This is the ratio between the number of sales in a given month and the number of active listings at month-end.
In hotter markets in BC, a long-term analysis has shown that prices will usually act in the following ways:
- 7+ Months of Inventory (Under 14% SAL): Prices will likely DECLINE
- 5 – 7 Months of Inventory (14% – 18% SAL): Prices will likely be STABLE
- Less than 5.5 Months of Inventory (Over 18% SAL): Prices will likely RISE
Sales in May 2023 (5,122) were 17.5% higher than May 2022 (4,278), and were close to the 10-year average (5,250).
Cumulative Year-to-date Sales
2023 is off to a slower start as sales (14,851) remain below the 10-year average (19,218).
May inventory (14,851 active listings) increased only slightly from the previous month, and are more than 20% below the 10-year average (19,218 average).
Sales to Active Listings
Higher sales and low inventory kept the Sales to Active Listing Ratio above 34%, indicating rising prices.
Months of Inventory
Similarly, Months of Inventory fell to 2.9 MOI, indicating a shift back to a seller’s market and rising prices.