METRO VANCOUVER

Signs of market cooling; sales dip, some price declines

Metro Vancouver’s residential sales and new listings both saw a month-over-month drop in August, a market cooling that was also accompanied by a slowing pace in price increases as well as actual price drops in some areas. August sales across all property types in the region totalled 2,296, a slight decrease of .06% from July, 13.8% below the 10-year average, but still 21.4% higher than the same period one year ago. New listings also declined compared to the previous month by 15% for a total of 3,943 across all property types. Nonetheless, compared with one year earlier, August’s new listings were about 18% higher than the same month last year, and not far behind, at 5.3% under, the 10-year seasonal average. This still brought Metro Vancouver’s total available inventory of homes at the end of August to 10,082, while 13.4% under the 10 year average, a mere 0.2% under the total for August 2022. Notably though, it was the second consecutive month with a similar rate of decline in new listings. Price increases over recent months have to some extent been explained by lower supply in relation to higher demand. This was somewhat of a paradox as higher mortgage rates had reduced demand sufficiently with the expected effect of bringing prices down. However, it appears that Canada’s central bank interest rate increases, which can have a lag time of 12-18 months to take hold, may now also be factor in the early signs of price declines. Last week’s hold on another rat increase by the Bank of Canada was no doubt happy news for current home shoppers an owners with variable rates, but the central bank still cautions that the inflation rate may rise again necessitating another interest rate hike. In the meantime, you can watch this newsletter as we track comparative prices each month for you. At the end of August, the composite benchmark price for a residential property in Metro Vancouver was $1,208,400, a decline of 0.2% from the preceding month.

For a closer look at current benchmark prices for each property type in different areas of Metro Vancouver, take a look at the selection below showing the price change from the previous month. Benchmarks are average prices for comparable properties. The benchmarks in each of the six municipalities I have selected for each property type are grouped around the overall benchmark for that property type. The grouping shows the three benchmarks on the upper side of the average, and the three benchmarks on the lower side of the average. These will provide with you with a general guide for home shopping within your budget. However, remember that benchmarks are averages within the extremities as provided. There can therefore be specific prices on particular properties that are farther from the average which represent a price that may be a closer fit for you finances. Please feel free to call me for more details on sale properties in any neighbourhood. And if you are considering listing you home for sale, I can prepare a Customized Market Analysis (CMA) for your property and assist you determining the optimal asking price in the current market. I keep a close eye on the changing market and can provide you with the most up to date information for the area of your choice. I am always happy to help my clients so please don’t hesitate to call.       

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of August was $2,018,500, an increase of 0.3% from the preceding month. The extremities of this average were Vancouver West at $3,519,100 and Sunshine Coast at $894,200. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,047,100, an increase of 0.3% from the preceding month; Port Moody at $2,076,500, an increase of 0.3% from the preceding month; and Richmond at $2,199,700, 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 $1,9232,700, a decrease of 1.1% from the preceding month; Vancouver East at $1,913,500 an increase of  0.9% from the preceding month; and Coquitlam at $1,798,000, an increase of 0.1% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of August was $1,103,900, a decrease of 0.1% from the preceding month. The extremities of this average were: Vancouver West at $1,498,300 and Maple Ridge at $763,400. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,120,800, a decease of 2.0% from the preceding month; Vancouver East at $1,135,400, an increase of 0.8% from the preceding month; and North Vancouver at $1,320,100, a decrease of 2.9 from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $1,057,200, an increase of 2.8% from the preceding month; Burnaby South at $1,036,600, an increase of 1.8% from the preceding month; and Tsawwassen at $1,004,800, no change from the preceding month (Squamish has been excluded here as it too far out for my clients).

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of August was $770,000, a decrease of 0.2% the from the preceding month. The extremities of this average were West Vancouver at $1,356,700 and Maple Ridge at $545,400. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $799,00 a decrease of 0.6% from the preceding month; North Vancouver at $817,400, an increase of 0.4% from the preceding month; and Burnaby South at $823,300, an increase 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 $747,500, an increase of 0.1% from the preceding month; Richmond at $747,000, an increase of 0.8% from the preceding month; and Coquitlam at $742,600, an increase of 0.1% 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.