Sales drop amid tariff concerns; high inventory; buyer opportunities
Metro Vancouver’s April home sales showed a meagre 3% increase over the preceding month, with a total of 2,163 inching above March sales of 2.091. Similarly, new listings for April totalled 6,850, a 6.1% increase over March’s 6,455 new listings. April’s sales decline has come at time when there were early signs of optimism in the Metro Vancouver market, which had been steadily showing higher month-over-month increases since the beginning of the year. On a longer historical comparison, April sales were 28% below, and new listings 20% above, the 10-year seasonal average. This compares with March sales 39% below, and new listings 16% above, the 10 year average. In other words, on a 10 year average, we see an improvement in both measures in the current market. Nonethless, new listings in recent months have outpaced sales, creating an extraordinary abundance with a total inventory at the April of 16,207 homes across all property types. This robust supply is close to 30% above the same period one year ago, and 47.6% above the 10 year average. Yet, while this inventory continues to ballon, prospective buyers are holding back at a time of year when home purchases normally surge. Analysts point to exogenous factors to explain this atypical behaviour, with general economic uncertainty arising from U.S. trade tariffs disrupting markets, and mounting fear of economic recession. However, there are incentives to consider for home purchase at this time, in particular, lower borrowing costs as mortgages rates have declined with central bank rate cuts. With the Bank of Canada policy rate holding steady at 2.75% since April, commercial five year mortgage rates can now be found as low as 3.84% for fixed, and 3.95% variable. Prospective buyers should watch for the Bank of Canada rate announcement scheduled for June 4. Prices are also a purchase incentive to consider at this time. With such high inventory levels, prices are generally stable, or declining, and buyers have some leverage to negotiate as well.
At the end of April, the composite benchmark price for residential property in Metro Vancouver was $1,184,500, a 1.8% decrease from the preceding month.
I invite you to peruse my monthly selection of comparative benchmark prices in different areas of Metro Vancouver below. Each property type has the overall benchmark price with a cluster of the closest average prices on the upper and lower sides of the benchmark average of comparable properties in different geographical areas. The month-over-over month price changes give you an idea of the market activity that produces these fluctuations. The extremities of each benchmark price is also provided to show the range of prices making up the average. It is important, also, to remember that benchmarks are averages – so you may find an attractive actual price. Please call me for additional information if you are interested in any particular neighborhood. I can provide you with the most up-to-date information. And if you are interested in listing your property for sale, I can advise you on the optimal asking price in the current market conditions.
Detached homes
The benchmark price for a single-family detached home in Metro Vancouver at the end of April was $2,021,800, a decrease of 0.6% from the preceding month. The extremities of this average were Vancouver West at $3,427,100 and Sunshine Coast at $840,000. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $2,060,600, a decrease of 2.4% from the preceding month; Richmond at $2,155,200, a decrease of 0.7% from the preceding month; and Burnaby North at $2,171,000, an increase of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,969,200, a decrease of 1.3 from the preceding month; Vancouver East at $1,852,000, a decrease of 0.1% from the preceding month; and Coquitlam at $1,792,100, a decrease of 1.2% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of April was $1,102,300, an increase of 0.1% from the preceding month. The extremities of this average were Whistler at $1,642,100 and Sunshine Coast at $753,700. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,110,300, a decrease of 1.2% from the preceding month; Vancouver East at 1,128,400, a decrease of 2.7% from the preceding month; and North Vancouver at $1,325,300, a decrease of 0.9% from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,081,400, a decrease of 0.2% from the preceding month; Port Moody at $1,043,800, an increase of 0.9% from the preceding month; and Ladner at $1,034,300, an increase of 0.2% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of April was $762,800, a decrease of 0,6% from the preceding month. The extremities of this average were: West Vancouver at $1,216,700 and Sunshine Coast at $507,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $789,200, an increase of 0.7 from the preceding month; North Vancouver at $815,200, a decrease of 0.3% from the preceding month; and Burnaby South at $836,900, a decrease of 0.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $743,400, a decrease of 1.8% from the preceding month; Port Moody at $734,900, a decrease 0.4% from preceding month; and Richmond at $732,500, a decrease of 1.7% from the preceding month.
Let me help
There are many ways I can help you with your real estate transactions. Please let me know how I can help in these challenging times. You may need help in managing your home ownership plans, or in adjusting your financial strategy for a home purchase. Perhaps you are thinking of listing your home for sale and want to understand the market to set your asking price. Let me help. I have a 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.