SALES ACTIVITY IMPROVES FOR SECOND CONSECUTIVE MONTH
Sales growth in May was met with a decline in new listings. This combination eased the pressure on inventory levels, which finished the month at 7,467 units, a decline of 12% compared to last year. Improving sales relative to inventory levels caused the months of supply to ease to just under 4 months. While still oversupplied, this is an improvement from 5 months of supply recorded last May.
Citywide sales in May totalled 1,921 units, 11% higher than last years levels. However, sales remain 10% below long-term trends. This sales growth was primarily driven by homes priced under $500,000.
While sales activity remains low based on historical activity for May, the easing prices have brought some people back to market, while also preventing some others from listing. This has started to push the market towards more balanced conditions. If this trend continues, it could limit some of the downward pressure on prices.
Citywide benchmark prices totalled $424,600 in May. Prices have shown some signs of improvement month-over-month, but remain 4% lower than 2018.
Detached: Sales in May totalled 1,182 units. This is a 12% increase over last year. Combined with an improvement in sales, new inventory declined from 4,504 units last May to 3,921 this May. This is the first time since 2017 that year-over-year inventories declined. Easing inventories and improved sales, caused months of supply to ease to 3.3 months. This is an improvement over last year.
Apartment: The improvement in monthly sales was not enough to offset previous declines. Year-to-date apartment sales sit at 1,030 unit. This is a 7% decline from last year. If the reduction in oversupply continues, it will eventually help limit price declines.
Attached: Sales activity continued to improve in May. Year-to-date sales improved by 2%, making this the only sector to record a year-to-date improvement. New listings have also pulled back relative to sales. This is causing inventories to ease compared to last year, and months of supply to trend down.
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Information was last updated June 2019.