Based on data from the Real Estate Board of Greater Vancouver (REBGV), National Bank of Canada's preliminary estimate is that seasonally adjusted home sales edged up 0.5% from April to May, the first increase in three months.
Despite this stabilization, transactions continued to be very low on a historical basis and stood 32.7% below their historical average, noted the bank.
While the marginal improvement in transactions in May remains good news, activity in Vancouver's real estate market doesn't appear to be showing any signs of a significant recovery, likely due to ongoing affordability issues, economic uncertainty and, more recently, geopolitical turmoil, stated National Bank.
In addition, the labor market improvement the bank has seen in the region over the past year has recently been completely wiped out, with the unemployment rate jumping from 5.8% in February to 7.0% in April -- its highest level since June 2021.
Should trade relations improve and the labor market stabilize, the potential boost in consumer confidence could stimulate activity in the residential market, added National Bank. However, the recent rise in fixed mortgage rates due to rising inflation could limit this recovery.