METRO VANCOUVER

New listings replenish supply to pre-covid level; higher prices forecasted.

Metro Vancouver’s residential market activity last month showed continuing upswings in both sales and new listings. Total sales of 2,831 for the month of April reflected the second consecutive month-over-month  rise of 17%, and new listings of 7,092 homes across all property types was close to a 42% increase over March. With the surge in new listings outpacing sales, Metro Vancouver was left with a healthy inventory at the end of April with 12,491 available homes, the largest supply since mid-2020. April’s new listings were nearly 65% higher than the same period one year ago, and over 16% above the 10-year average. The inventory growth comes ahead of  much anticipated rate cuts by the Bank of Canada later this year. Although the central bank has not firmly committed yet to lowering its key lending rate, still at 5% since last July, there has been a growing number of economists pointing at mortgage costs as the primary driver of inflation in Canada. Last month’s inflation rate was updated to 2.9%, with close two thirds of the rate attributed to shelter costs and 17% to food price inflation. Te higher central bank policy rate is keeps mortgages interest rates high – in the Greater Vancouver area currently five year competitive variable rates are typically over 6.0 % and five year fixed rates just under 5.0%, and with some of largest mortgages in the country, the market also demands some of the biggest down payments. However, higher mortgage rates have no doubt moderated  upward pressure on home prices, although overall prices still continue to rise typically in a range of 1.0% - 2.0% each month. Condominiums were the exception last month, with this segment recording in April a decline of 0.1% from the previous month. Prospective buyers with price sensitive budgets, however, should note than the Canada Mortgage and Housing Corporation’s recent forecast on home prices pointed to prices could rise to 2022 levels by next year, and reach new highs by 2026. The composite benchmark price for residential property in Metro Vancouver at the end of April was $1,205,800, an increase of 0.8% from the preceding month.

In my monthly selection of benchmark prices below, you can find comparative prices for similar homes in different areas of Metro Vancouver. Each property type the overall benchmark has a cluster of the three closest benchmarks on each of side of the average. The extremities of each benchmark average Is provided so you can see the range of prices making up  the average. The month-over-month price changes are also shown to give an idea of the current market dynamics in the area. It is important to remember that averages may conceal considerable differences in individual prices, so if you are interested in a particular neighbourhood, please give me a call. I keep a close eye on the market and I can provide you with the most up to date market listings. And if you are thinking about putting you home on the market, I can prepare a Customized Market Analysis for your property and advise you on the optimal listing price in the current market conditions. Please feel free to call. I love to help my clients.           

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of April was $2,040,000, an increase of 1.6% from the preceding month. The extremities of this average were Vancouver West at $3,527,900 and Sunshine Coast at $869,100. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,116,600, an increase 0.3 from the preceding month; Port Moody at $2,140,100, an increase of 3.8% from the preceding month; and Richmond at $2,207,800, an increase of 0.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,994,100, an increase of 1.5% from the preceding month; Vancouver East at $1,873,100, an increase of  1.1% from the preceding month; and Coquitlam at $1,832,900, 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 $1,127,200, an increase of 1.3% from the preceding month. The extremities of this average were Vancouver West at $1,525,800 and Sunshine Coast at $783,100. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,149,300, an increase of 2.3% from the preceding month; Vancouver East at $1,149,400, an increase of 0.1% from the preceding month; and North Vancouver at $1,389,400, an increase of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,071,500, an increase of 0.8% from the preceding month; Port Moody at $1,031,800, an increase of 2.3% from the preceding month; and Ladner at $1,014,300, an decrease of 1.9% from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of April was $776,500, a decrease of 0.1% from the preceding month. The extremities of this average were West Vancouver at $1,300,800 and Maple Ridge at $554,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $810,000 an increase of 0.7% from the preceding month; Burnaby South at $820,600, an increase of 1.1% from the preceding month; and North Vancouver at $822,600, a decrease of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $757,200, a decrease of 2.0% from the preceding month; Burnaby North at $755,000, an increase of 0.2% from the preceding month; and Coquitlam at $750,100, an increase of 0.2% from the preceding month.

 

Let me help

 

These are challenging times for home buyers and homeowners. With higher mortgage interest rates, 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.