METRO VAN

Sales decline continues; prices downward; fixed mortgage rates rise

Metro Vancouver ‘s residential sales dropped sharply again in August with a 9.3% decline from the preceding month. It was the second consecutive month with steep declines, following a 13.7% month-over- month drop this past July. The slow-down has been evident since last May, with August’s total sales 3% lower than the same period last year, but notably 20.7% below the 10-year seasonal average. Yet, the market is not short on sellers. New listings last month reached 4,100 across all property types, close to the ten-year seasonal average – an indicator that buyers are holding off on purchase decisions for other reasons:  in all likelihood because of macro-economic factors arising from international conflicts. However, in this period of economic uncertainty, there are many excellent opportunities that eligible buyers should note. At the end of August, Metro Vancouver’s inventory of available homes across all property types was an appealing 15,798 home. While this total was lower than one year ago by 2.7%, it was still 26% above than the 10 year seasonal average. In the current economic climate, prospective home buyers should also note that fixed rate mortgages – based on bond yields, not the Bank of Canada policy rate – are now rising. At the time of writing, Ratehub.ca’s best 5- and 10-year fixed (insured) mortgage rates were 4.09% and 5.40% respectively. A 5-year variable rate on Ratehub.ca  (following the Bank of Canada’s hold on its policy rate at 2.25% on September 2) was 3.30%, an attractive borrowing rate in the present market. In addition, the large selection of homes in Metro Vancouver combined with the current softening demand is creating excellent buying opportunities at this time. Home prices have now dropped on average close to 6% from one year ago. At the end August, the composite benchmark price for a residential property in Metro Vancouver was $1,081,900, a 0.6% decrease from the preceding month    

Please review my selection below of comparative benchmarks across Metro Vancouver for the past month. You will find, for each property type, an the overall benchmark price with a cluster of the three closest average prices on each side of the benchmark average. The month-over-month price is also provided. It is typically a  reflection of the relative market activity in the neighborhood. The range of prices making up the average will allow to better assess if there might be a specific price that is attractive to you among the number of homes composing the average. It is important to remember that benchmarks are averages. If you would like to explore a particular neighbourhood, 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 August was $1,799,400,900, a decrease of 1.3% from the preceding month. The range of this average extended from $2,932,700 in Vancouver West to $830,800 on the Sunshine Coast. The three municipalities closest to the benchmark on the higher side of the average were: Pitt Meadows at $1,188,900, a decrease of 1.7% from the preceding month; Burnaby South at $1,887,800, a decrease of 1.7% from the preceding month; and Burnaby North at $1,816,500, a decrease of 2.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,694,900, a decrease of 1.1% from the preceding month; Vancouver East at $1,621,400, a decrease of 1.3% from the preceding month; and Coquitlam at $1,188,900, a decrease 1.7% from the preceding month.

Townhouses

The benchmark price for a townhouse in Metro Vancouver at the end of August was $1,028,800, a decrease of 0.1% from the preceding month. The range of this average extended from $1,069,700 in Whistler to $704,100 in Maple Ridge. The three municipalities closest to the benchmark on the higher side of the average were: North Vancouver at $1,247,700, an increase of 0.8% from the preceding month; Vancouver West at $1,334,900, an increase of 1.1% from the preceding month; and Whistler at $1,690,700, an increase of 1.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $1,022,200, a decrease of 1.3 from the preceding month; Squamish at $1,009,100, an increase of 1.0 from the preceding month; and Vancouver East at $985,400, a decrease of 2.3% from the preceding month.

Condominiums           

The benchmark price for a condominium in Metro Vancouver at the end of August was $686,200, a decrease of 0.2% from the preceding month. The range of this average extended from $1,122,600 in West Vancouver to $440,100 on the Sunshine Coast. The three municipalities closest to the benchmark on the higher side of the average were:  Burnaby East at $707,600, a decrease of 0.8% from the preceding month; Burnaby South at $731,500 a decrease of 1.4% from the preceding month; and North Vancouver at $770,300, a decrease of 2.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $680,200, a decrease of 1.2% from the preceding month; Burnaby North at $669,700, a decrease 0.5% from preceding month; and Coquitlam at $646,100, a decrease of 0.8% 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.