METRO VANCOUVER

Residential market cooling; price increases show downward trend

Showing the biggest single month decline in recent months, April’s home sales in the Metro Vancouver market were still 1.5% above the 10-year average, marking what appears to be a return to historical levels for what has been one of the hottest urban markets in Canada over the past two years. The total of 3,232 sales across all property types last month was a decline of nearly 26% from the previous month of March, and was more than 34% down from one year ago. The rapid cooling in the pace of sales can more likely be attributed to the Bank of Canada’s recently launched inflation fighting interest rate policy than to a reduced demand for housing in the region. With the resulting rise in mortgage interest rates, many prospective buyers are finding it more difficult to qualify for home mortgages and may be temporarily sidelined from making home purchases. However, this can only translate into increasing pent-up demand for housing in the region while home seekers await developments to increase the housing supply as promised in the recent federal government budget. One of the key highlights is the Rapid Housing Initiative, a $1.5-billion fund to create 6,000 new affordable housing units over the next two years. Meanwhile, new listings In Metro Vancouver last month showed a increase of 15.3% over the previous month, bringing the total of available homes in Metro Vancouver to 8,796 at the end of April. While this provides home shoppers with a very good selection, it is nonetheless down 14.1% from one year ago. But both prospective home buyers and sellers should be aware that the market is appears to be moving to a more a more balanced position, making for a less frenzied sales climate but with demand still exerting upward price pressure, although at a slower rate of increase.

The composite benchmark price for a residential property in Metro Vancouver at the end of April was $1,374,500, an increase of 1.0% from the preceding month. The monthly rate of increase is moderating significantly as can be seen in comparison with a 3.6% increase in March and a 4.6 increase in February. For the three property types shown below, the largest number of sales in April was in condominiums with a total of 1,692, a 26.1% decrease compared with the same period one year ago; sales of detached homes followed, reaching at total of 962 in April, a decrease of 41.9% for the same period one year ago; and April sales of townhouses totalled 578, a 40% decrease from the same month one year ago. In the selection of benchmark prices for each different property type, you will find a cluster of prices on the higher and lower side of the combined benchmarks for different geographical areas in Meto Vancouver at the end of April. The selected benchmarks are average prices for comparable homes in each area, and can serve as a guide for you purchase budget or planned listing. However, it is important to remember that benchmarks are average prices, and you should not rely on the benchmark alone. Among the prices composing any average, there are individual prices that I can provide to you. If you are interested in a finding a home within the range of prices shown, please don’t hesitate to call me. I am able to advise you on the most up-to-date prices for any neighborhood you may be interested in. And if you are thinking of selling, I can assist you in setting the optimal price in the current market dynamics.

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of April was $2,139,200, an increase of 1.0% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,380,200 and Sunshine Coast at $1.016,500. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $2,188,500, an increase of 0.3% from the preceding month; North Vancouver at $2,231,000, an increase of 0.2% from the preceding month; and Port Moody at $2,314,900, an increase of 1.8% from the preceding month.The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South $2,127,700, an increase of 2.9% from the preceding month; Burnaby North at $2,048,300, an increase of 1.3% from the preceding month; and Vancouver East at $1,956,200, an increase of 1.2% from the preceding month.

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of April was $1,150,500, an increase of 1.1% from the preceding month. The extremities of this average were Whistler at $1,586,700 and Sunshine Coast at $739,800. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,182,600, an increase of 0.5% from the preceding month; North Vancouver at $1,384,400, an increase of 0.8% from the preceding month; and Vancouver West (not West Vancouver) at $1,417,500, an increase of 2.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $1,120.100, an increase of 1.8% from the preceding month; Coquitlam at $1,064,000, an increase of 0.9% from the preceding month (Squamish is omitted here because it is too far our for my clients); and Port Coquitlam at $1,010,600, an increase of 3.2% from the preceding month

Condominiums

 

The benchmark price for a condominium in Metro Vancouver at the end of April was $844,700, an increase of 1.1% the from the preceding month. The extremities of this average were West Vancouver at $1,252,600 and Maple Ridge at $546,600. The three municipalities on the higher side of the average were: Burnaby East at $846,700, an increase of 0.9% from the preceding month; Vancouver West at $904,200, an increase of 0.6% from the preceding month;  and West Vancouver at $1,252,600, an increase of 5.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $840,600, an increase of 1.4% from the preceding month;  Burnaby North at $830,400, an increase of 1.5% from the preceding month; and Richmond at $829,700, an increase of 0.2% from the preceding month.

 

I can help

 

These are challenging times for many homebuyers and homeowners. With Bank of Canada interest rates now rising, you may need to adjust your financial strategy for your home purchase If you need help in managing your home ownership plans, I can help. I have post-graduate education in business along with years of experience in both banking and real estate. I am happy to help in any way I can. I want my clients to achieve their goals. Please don’t hesitate to call me.