At this point, it should come as no surprise that the real estate market in the City of Vancouver has seen a strong decline in the sales activity since it peaked earlier this year. It should also come as no surprise that prices have come down considerably for some property types and neighbourhoods, and moderately for others.

But with that being said, are we starting to see signs of change and stability?

In this market report, which is specific for the City of Vancouver, I will be talking about which markets may be showing signs of change and which markets may be showing signs of stability, based on an important statistic that you should be monitoring.

I'll also provide important insights and tips about this statistic.

Sales to Active Listings Ratio

If you watched my market report video in the month of July, you'll remember that I said one of the most important statistics that you should be monitoring is the sales to active listings ratio.

The reason why this statistic is important is because it compares sales to inventory levels, tells us the
rate at which homes are selling, and in turn tells us if we're in a buyer's market, a balanced market, or a seller's market.

Based on the guidelines provided by the Real Estate Board of Greater Vancouver, a buyer's market has
a sales to active listings ratio of below 12%, a balanced market has a ratio of between 12 to 20%, and a seller's market has a ratio of above 20%.

Consecutive months of a buyer's market can lead to downward pressure on pricing, while consecutive months of a seller's market can lead to upward pressure on pricing. But the key word here is can.

Let me explain.

Just because a neighbourhood is a seller's market, that doesn't mean that prices are rising. Even if that neighbourhood has consecutive months of being a seller's market, that also doesn't mean that prices will necessarily be rising.

One of the key factors in determining if prices will rise or fall is the rate at which the sales to active listings ratio is climbing or falling and sustaining from month to month.

If the ratio is climbing significantly and consistently from month to month, or remaining consistently high from month to month, that will lead to upward pressure on pricing. If the ratio is falling significantly and consistently from month to month, or remaining consistently low from month to month, that will lead to downward pressure on pricing.

Based on this information, let's take a look at what's been going on with the condo, townhome, and detached home markets on the East Side and the West Side of Vancouver over the last few months.

Vancouver East Condo Market

The sales to active listings ratio fell aggressively from March to April. It continued to fall at a strong rate from April to July, but since July it's been stable. It's been stable and consistent for three months and is currently a seller's market.

Vancouver West Condo Market

The sales to active listings ratio fell aggressively from March to April. It continued to fall at a strong rate from April to June, started to decline at a lower rate from June to July, and actually moved up in August, but then back down in September. Although its rate of decline has lowered over the last three months compared to the previous four, it's still experiencing some fluctuation. It's currently a balanced market.

Vancouver East Townhome Market

There was a strong decline from March to April, an even stronger decline from April to May. Although the rate at which it's continuing to decline has lowered considerably from month to month, since May, it's still declining and not showing signs of stabilising. It's currently a balanced market.

Vancouver West Townhome Market

The sales to active listings ratio fluctuated down and up over the last six months, with the steepest decline taking place between June and July. The overall direction has been down, and it's not showing signs of stability. It's a currently a balanced market.

Vancouver East Detached Homes Market

There was a strong decline from March to April. It continued to decline at a lower rate from April to July,
and it's actually been moving up for the last three months. It's currently a balanced market.

Vancouver West Detached Homes Market

There was a strong decline in the sales to active listings ratio from March to April. It continued
to decline from April to July. It moved up in August and then down slightly from August to September. Over the last three months, it's moved up slightly and is somewhat stable. It's currently a buyer's market.

As you can see when it comes to the sales to active listings ratios not only have a majority of the six markets seen a change in the rate of decline over the last three months, a couple of them are showing signs of stability while one is actually on the rise.

Please note, though, that this market report was for the general condo, townhome, and detached home markets only. And just as there were differences between these markets in the rate of change for the sales to active listings ratio. There will also be differences within the neighbourhoods of each of these markets.

Since we are seeing changes, you should definitely be keeping a close eye on the neighbourhoods and the property types that are the most important and the most relevant to you.

Be Market Wise. Monitor What Matters so that you can Make Informed Decisions.

If you would like to be kept up to date with the real estate market in the City of Vancouver as we continue to move through this transition, please click here.

To get a copy of the stats and graphs that were covered in this report, or if you would like to get
detailed information about specific neighbourhoods and property types, please click here.

Or if you prefer, you can call me, you can text me, or you can email me. I promise you that I'll provide you with an informative pressurefree conversation.

Thanks for reading and have a great day.

**Stats for this report were based on sales to active listings ratio data from March 2022 to September 2022, as of October 3rd, 2022. Data provided by the Real Estate Board of Greater Vancouver. Data deemed realiable but not guaranteed.