METRO VANCOUVER
Spring sales continue upward; abundant inventory offers great choices
Metro Vancouver’s residential market in April registered a slight increase of 3.8% in sales over the preceding month, while new listings posted a 15% increase for the same period. The net result in the total inventory was a 9.8% increase, with 16,236 available homes across all property types at the beginning of May. Home shoppers have an excellent range of choices with this abundant supply, which is 38% above the 10-year seasonal average. On an annual comparison, single family detached homes showed the greatest rate of increase last month, increasing 14% with 659 sales in April. While condominium sales for the month surpassed detached homes with a larger total of 1,130, their comparable rate of increase was 11% for the same period. Townhouses followed with fewer sales for a total of 433 for the month, a 5.1% decrease from April last year. While this overall buoyancy in the market was a welcome prelude to the summer season, it remains to be seen if it will be sustained over the coming months as increased buyer hesitancy in the face of threatening inflation from world oil price shock still looms large. Although, the Bank of Canada maintained its policy rate at 2.25% at the end of April, this fourth consecutive rate hold comes amid an ongoing Middle East conflict and the resulting soaring global energy prices. Should geopolitics push up inflation, the central bank could be forced to raise its key rate. Commercial borrowing rate would then also increase. The next scheduled Bank of Canada interest rate announcement is scheduled for June 10. Currently the best 5-year fixed mortgage rates in Canada posted on Ratehub.ca is 4.14% and the best 5-year variable rate mortgage is 3.35%. Remember that when the Bank of Canada rate increases to slow inflation, it directly impacts variable rate mortgages. Fixed rate mortgages, however, are driven by bond yields, which typically rise on expectations of inflation. Home prices in Metro Vancouver continue to inch downwards overall. At the end of April the composite benchmark price for a residential property in Metro Vancouver was $1.098,000, a 0.6% decrease from the preceding month.
In the section below, I have made my monthly selection of comparative benchmark prices in different areas of Metro Vancouver. For each property type, you will find an overall benchmark price surrounded by the three closest average prices on each side of the benchmark average. The month-over-month price change is typically a reflection of the relative market activity in the neighborhood, Remember, however, that benchmarks are averages, nnd a particular actual price may be a better fit for your budget. If you are interested in exploring any specific area, please let me know. I can provide you with the most up-to-date information on current listings. And if you are considering selling your home, I can prepare a Customized Market Analysis for your property and advise you on the optimal listing price is the current market conditions. Pleas feel free to call. I love to help my clients in any way I can.
Detached homes
The benchmark price for a single-family detached home in Metro Vancouver at the end of April was $1,840,700, an increase of 0.8% from the preceding month. The range of this average extended from $2,979,500 in Vancouver West to $820,700 on the Sunshine Coast. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North $1,888,200, an increase of1.83% from the preceding month; Port Moody at $1,974,200, a decrease of 2.1% from the preceding month; and Richmond at $1,964,100, a decrease of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,780,700, a decrease of 1.9% from the preceding month; Squamish at $1,693,700, a decrease 1.9% from the preceding month; and Vancouver East at $1,681,000, a decrease of 1.1% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of April was $1,043,400, a decrease of 0.4% from the preceding month. The range of this average extended from $1,636,900 in Whistler to $724,800 on Sunshine Coast. The three municipalities closest to the benchmark on the higher side of the average were: North Vancouver at $1,273,700, an increase of 1.4% from the preceding month; Vancouver West at 1,340,400, a decrease of 4.0% from the preceding month; and Whistler at $1,636,900, 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 $1,036,400, an increase of 0.1% from the preceding month; Vancouver East at $1,026,200, a decrease of 1.7% from the preceding month; and Coquitlam at $1,008,100, an increase of 0.1% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of April was $703,000, a decrease of 0.5% from the preceding month. The range of this average extended from $1,017,300 in West Vancouver to $491,900 in Squamish. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $703,400, an increase of 0.2% from the preceding month; Burnaby East at $726,300, an increase of 0.5% from the preceding month; and Burnaby South at $758,000, a decrease of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $695,500, an increase of 1.1% from the preceding month; Vancouver East at $664,800, a decrease 0.7% from preceding month; and Coquitlam at $664,000, a decrease of 0.6% 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.