Market activity slows again but still above historical average; new listings down, some price declines

The Metro Vancouver residential market slowed for another month in August, both in sales activity and new listings. While outpacing new listings for the month, sales are still strong at 20% above the 10-year average and 3.4% over sales for the same period one year ago. However, on a month-over-month comparison, August sales, which reached a total of 3,152 across all property types, were down a total of 5.2% from the preceding month of July. On an annual comparison, sales of detached homes and townhouses showed decreases, while condominium sales were higher: the number of sales of detached homes in August was 945, a decrease of 13.7% from the same month one year ago; townhouse sales reached 576 in August, down 7.1% from one year earlier; and August condominium sales totalled 1,631, an increase of 22.4% over the same month last year. On the basis of individual property types, sales-to-active listings breaks down as 25.3% for detached homes; 51.8% for townhouses; and 39.2% for condominiums. New listings in August reached 4,032 across all property types, a 7.9% decrease from new listings in July, and a 30.6% decrease for the same month one year ago. This brought the total inventory available for Metro Vancouver properties at the end of August to 9,005, nearly 30% lower than one year earlier, and almost 9.0% down from the preceding month this year. It is worth noting that despite the declining inventory, the composite benchmark price for a Metro Vancouver home at the end of August rose only 0.1% from the preceding month, reaching $1,175,000.    

In each of the property categories listed below, I have selected my monthly comparison of benchmark prices in different geographical areas clustered around the overall benchmark price for the specific property type. These benchmarks are meant as a guide to prices on comparable properties in different neighbourhoods and may assist you in your search for home that meets your budget requirements. However, remember that benchmarks are averages, and monthly fluctuations are based on recent market activity. With the modest increase in the overall benchmark increase mentioned above, there are some recent decreases to note in some areas. For example, the benchmark price for single family detached homes in North Vancouver decreased by 1.6% and in Port Moody by 0.4% in August. On the other hand, townhouses jumped by 2.7% in Vancouver East and in Tsawwassen by 1.6% in the same period. It is likely that with the continuing decline in new listings, prices will increase under current inventory conditions. As such, housing affordability in the Metro Vancouver region will require a public policy solution. I would advise prospective buyers needing to find a home not to delay purchases as other factors can come into play in the future such as a rise in the base rate for mortgages and more stringent mortgage qualification measures. Please feel free to contact me if you have any questions in your home search and I will be happy to provide you with detailed information for your preferred area. If you are thinking of listing at this time, I keep an close eye on market developments and can advise you on an optimal listing price in this dynamic market.  

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of August was $1,807,100, a 0.3% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,462,200 and Sunshine Coast at $847,800. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $1,855,700, a decrease of 0.4% from the preceding month; North Vancouver at $1,865,800, a decrease of 1.6% from the preceding month; and Richmond at $1,920,400, an increase of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North $1,761,800, an increase of 0.9% from the preceding month; Burnaby South at $1,788,100, an increase of 0.8% from the preceding month; and Vancouver East at $1,689,700, a decrease of 0.2% from the preceding month. 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of August was $952,600, an increase of 0.3% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,286,600 and Sunshine Coast at $601,400. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,021,300, an increase of 2.7% from the preceding month; North Vancouver at $1,140,100, an increase of 1.3% from the preceding month; and Vancouver West (not West Vancouver) at $1,286,600, a decrease of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $938,400, an increase of 0.6% from the preceding month; Tsawwassen at $850,300, an increase of 1.6% from the preceding month; and Coquitlam at $848,900, an increase of 0.2% from the preceding month. (Squamish and Whistler were excluded here because they are too away for my clients.)

Condominiums

 

The benchmark price for a condominium in Metro Vancouver at the end of August was $735,100, a decrease of 0.2% the from the preceding month. The extremities of this average were West Vancouver at $1,102,400 and Maple Ridge at $427,800. Only two municipalities were closest to the benchmark on the higher side of the average were: Vancouver West at $825,000, a decrease of 0.5% from the preceding month; and West Vancouver at $1,102,400, a decrease of 3.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $730,800, an increase of 0.3% from the preceding month; Port Moody at $723,000, an increase of 1.5% from the preceding month; and Richmond at $713,400, a decrease of 0.2% from the preceding month. 

 

Let me help

Please don’t hesitate to call me for whatever you need in Real Estate advice. I am always happy to provide you with detailed information on the property type and neighborhood you may be interested in. And if you are contemplating listing your property for sale, I can provide you with information on comparable homes sold in your area. In some cases, prospective sellers may want to do some renovations before listing. I can advise on what will make for the most optimal return on your investment. I can also refer you to reliable tradespeople who do quality work at reasonable rates.