METRO VANCOUVER
Plentiful supply awaits buyers; Bank of Canada cuts policy rate again
Metro Vancouver’s residential market saw another month of sales decline with1,904 transactions recorded in August, an 18% drop from the previous month. It was also 17% below the same period one year ago and 26% below the 10-year seasonal average. Home buyers may have been understandably hesitant in anticipation of the Bank of Canada rate cut announced September 4. While August is typically a slower home sales month, September’s announcement of another 25 basis points reduction by the central bank would mean more borrowing cost savings were on the near horizon. The September reduction was the first time the central bank has made three consecutive rate reductions since 2009. This last rate reduction brought the Bank’s policy rate to 4.25%, 75 basis points lower than it was in July 2023. The Bank of Canada is still targeting a 2.0% inflation rate which is now close with the Consumer Price Index inflation rate of 2.5% inflation reported this past July. As Canada’s declining inflation rate now appears less volatile, more home buyers are choosing variable rate mortgages. Ratehub.ca reports the best variable rate in Canada, and available in British Columbia, as of September 7 was 5.3%. Fixed rate mortgages, which are tied to bond yields, are not directly affected by central bank rate cuts, but these may also see discounts coming soon as bond yields drop. Another Bank of Canada announcement is scheduled for October 23, and new listings are adding to Metro Vancouver’s available inventory. August’s new listings of 4,109 homes across all property types was a 4.2% increase compared to new listings for the same period last year, bringing the total supply of available homes in Metro Vancouver at the end of the month to 13,812, a 37% increase over the same period one year ago. During the period of home buyer hesitancy over the past few months, reduced demand along with the inventory build-up has produced a plentiful selection for prospective buyers. Home prices have continued to inch downwards as well, creating excellent purchase opportunities. The composite benchmark price for a residential property in Metro Vancouver at the end of August was $1,195,900, a 0.1% decrease from the preceding month.
In my monthly selection of benchmarks around Metro Vancouver below, you will find a guide to the latest price listings for different comparable homes in each property category. The month-over-month price change is a fluctuation that typically reflects the relative current market activity in an area. Each overall benchmark has a cluster of the three closest prices on each side of the benchmark price. Benchmarks are averages so the high and low extremities provide the range of prices making up the average. Keep in mind averages are a guide but may conceal a specific asking price that is particularly attractive for your budget. If you are interested in a particular neighbourhood, please give me a call. I can provide the most up-to-date listings. There are many home owners who are listing their properties now as mortgage rates come down, so please let me help you if you are thinking of listing your home for sale. I prepare a Customized Market Analysis for your property and advise you on the optimal listing price in the current market conditions. Please don’t hesitate 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 August was $2,048,400, a decrease of 0.1% from the preceding month. The extremities of this average were Vancouver West at $3,458,800 and Sunshine Coast at $880,400. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,140,000, a decrease of 1.2% from the preceding month; Port Moody at $2,178,200, an increase of 1.2% from the preceding month; and Richmond at $2,220,000, an increase of 1.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $2,007,200 an increase of 3.2% from the preceding month; Vancouver East at $1,869,800, an increase of 0.1% from the preceding month; and Coquitlam at $1,826,700, a decrease of 0.1% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of August was $1,119,300, a decrease of 0.5% from the preceding month. The extremities of this average were Whistler at $1,705,400 and Sunshine Coast at $768,300. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,144,000, a decrease of 1.3% from the preceding month; Vancouver East at $1,163,800, an increase of 0.7% from the preceding month; and North Vancouver at $1,328,400, a decrease of 1.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,076,600, a decrease of 1.4% from the preceding month; Port Moody at $1,063,100, an increase of 0.2% from the preceding month; and Burnaby South at $1,050,100, a decrease of 3.5% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of August was $768,200, no change from the preceding month. The extremities of this average were West Vancouver at $1,235,000 and Maple Ridge at $522,300. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East $780,700, a decrease of 1.8% from the preceding month; North Vancouver at $802,400, a decrease of 1.2% from the preceding month; and Burnaby South at $848,800, 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 North at $756,900, an increase of 0.1% from the preceding month; Port Moody at $740,700, a decrease of 1.6% preceding month; and Richmond at $743,400, an increase of 1.6% 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.