Metro Vancouver home sales return to more traditional levels in April

Home buyer demand in Metro Vancouver* returned to more historically typical levels in April.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 3,232 in April 2022, a 34.1 per cent decrease from the 4,908 sales recorded in April 2021, and a 25.6 per cent decrease from the 4,344 homes sold in March 2022.

Last month’s sales were 1.5 per cent above the 10-year April sales average.

“So far this spring, we’ve seen home sales ease down from the record-breaking pace of the last year,” Daniel John, REBGV Chair said. “While a small sample size, the return to a more traditional pace of home sales that we’ve experienced over the last two months provides hopeful home buyers more time to make decisions, secure financing and perform other due diligence such as home inspections.”

There were 6,107 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2022. This represents a 23.1 per cent decrease compared to the 7,938 homes listed in April 2021 and an 8.5 per cent decrease compared to March 2022 when 6,673 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,796, a 14.1 per cent decrease compared to April 2021 (10,245) and a 15.3 per cent increase compared to March 2022 (7,628).

“With interest rates climbing and the total inventory of homes for sale inching higher, it’s important to work with your local Realtor to understand how these factors could affect your home buying or selling situation,” John said. 

For all property types, the sales-to-active listings ratio for April 2022 is 36.7 per cent. By property type, the ratio is 25.3 per cent for detached homes, 47.1 per cent for townhomes, and 45 per cent for apartments.

Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,374,500. This represents an 18.9 per cent increase over April 2021 and a one per cent increase compared to March 2022.

Sales of detached homes in April 2022 reached 962, a 41.9 per cent decrease from the 1,655 detached sales recorded in April 2021. The benchmark price for a detached home is $2,139,200. This represents a 20.8 per cent increase from April 2021 and a one per cent increase compared to March 2022.

Sales of apartment homes reached 1,692 in April 2022, a 26.1 per cent decrease compared to the 2,289 sales in April 2021. The benchmark price of an apartment home is $844,700. This represents a 16 per cent increase from April 2021 and a 1.1 per cent increase compared to March 2022.

Attached home sales in April 2022 totalled 578, a 40 per cent decrease compared to the 964 sales in April 2021. The benchmark price of an attached home is $1,150,500. This represents a 25 per cent increase from April 2021 and a 1.1 per cent increase compared to March 2022.

Download the April 2022 stats package.

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Planning a home improvement project? A kitchen renovation can increase your home’s value by 20%, according to Royal LePage experts

Survey highlights:

• Royal LePage professionals say, on average, bathroom renovations can increase the value of a home by 16%
• Finished basements and basement apartments have the potential to increase a home’s value by 15%, according to survey results
• Outdoor entertaining space and landscaping have the potential to increase a property’s value by an average of 10%, according to respondents
• For Canadians looking for general guidance on where to invest in their home renovation projects, 87% of surveyed experts recommend interior renovations

TORONTO, May 5, 2022 – According to a recent Royal LePage survey of 340 real estate professionals across the country, a kitchen renovation is the most worthwhile home improvement project. Respondents say that, on average, a kitchen renovation has the potential to increase a property’s value by 20 per cent. A bathroom renovation ranked second, with the potential to increase a home’s value by an average of 16 per cent.

“Kitchen renovations typically yield the greatest return on investment, as this space is most frequently used, and is perceived as the gathering place and the heart of the home,” said Mike Heddle, broker and team leader, Royal LePage State Realty. “When a potential buyer views a home for the first time, the one thing that will stand out – for better or worse – is what the kitchen looked and felt like. They may not remember the size of the bedrooms or the colour of the walls, but they will remember the kitchen.”

Heddle noted that investing in upgrades to your home can be beneficial whether or not you are planning to sell in the short term.

“During the pandemic, many Canadian homeowners used built-up savings to make improvements to their homes. Whether it’s a new kitchen or upgrading your outdoor space, home renovations are a worthwhile investment, as you and your family will enjoy the new space, in addition to the potential increase to the overall property value.”

Exterior projects such as an outdoor entertaining space or landscaping have the potential to increase a property’s value by an average of 10 per cent.

The survey showed that basement renovations ranked third (finished basement) and fourth (basement apartment). Royal LePage experts say that finished basements and basement apartments have the potential to increase a home’s value by an average of 15 per cent.

“In today’s market, investing in a basement apartment can greatly increase the value of a home, largely because it can help offset mortgage costs with a rental unit, or appeal to newcomers looking for multigenerational homes,” said Heddle. “Since the onset of the pandemic, we are also noticing senior homeowners looking at multigenerational opportunities to live under the same roof. Having an additional fully livable unit allows for more privacy for those families.”

According to survey respondents, window replacements can increase the value of a home by 13 per cent, and interior painting can increase the value of a home by 12 per cent, on average.

“While updating the kitchen or a bathroom can increase your sales price more significantly, minor upgrades such as interior painting can be a simple and cost-effective option to increase the value of the home.”

For Canadians looking for general guidance on where to invest in their home renovation projects, the vast majority of surveyed experts (87%) recommend interior renovations.

The majority of surveyed experts (59%) say that prospective sellers have been less inclined to renovate their homes prior to listing since the onset of the pandemic, due to sustained seller’s market conditions. Additionally, 57 per cent say that sellers may choose not to renovate, due to recent increases in the cost of construction materials and labour.

“Properties that are turnkey with modern finishes spend less time on the market,” said Heddle. “However, the timeframe and logistics for delivery of goods and materials may be a deterrent for many sellers, especially with the rising costs associated with renovation projects.”

Investing in a pool is considered the least worthwhile renovation to increase a property’s value. According to the survey, a pool can increase a home’s value by an average of only six per cent.

Royal LePage Survey: Home Renovation ROI – Data chart: rlp.ca/chart-home-renovation-ROI