METRO VANCOUVER

New year sees single detached home prices rise; attached home prices decline

The start of the new year saw the upward trend in the composite benchmark price continue for residential properties in Metro Vancouver, as we forecast last month. Reaching $1,047,400, this average price across all housing types at the end of December 2020 was an increase 0.3% from the preceding month. More significantly, it was a 5.4% increase from December 2019. However, the rise in the composite benchmark was led primarily by the single detached home market segment, while condominium prices at the end of December 2020 were on average the same as the preceding month, showing an increase of only 2.6% from one year ago. The divergence in the two price trends will be important to follow in coming months. The combination of low interest rates and shifting home preferences because of Covid-19 appear to be the main factors driving the opposite price directions of the two market segments, while accelerating the demand for single detached homes. Overall home sales in December 2020 totalled 3,093, a 53.4% increase over December 2019, and the highest total for the month on record, 57.7% above the 10-year average. Detached homes led in sales with a total of 1,026 in the month of December, a 71.3% increase over the same period one year ago. Condominium sales were the second highest in total sales volume with 1,474 units sold in December, a 40% increase over December 2019. Townhouse sales totalled 593 in December 2020; however, this was notably almost 63% higher than sales in the same period one year ago. (The benchmark price for each property type is listed below along with their month-over-month price changes.) The higher-than-usual seasonal demand is expected to continue as the pandemic persists, and price escalation may accelerate even faster if supply does not keep pace with demand.  

The total inventory of homes in Metro Vancouver at the end of December 2020 was 8,538, a decrease of 23.2% from the preceding month. New listings were also down from the preceding month, with 2,409 listings across all property types for the month of December 2020. This was more than a 40% decrease from the preceding month. And Metro Vancouver’s total listings at the end of 2020 were 2.7% below the 10-year average. However, it is important to note that even with the upward pressure on prices that can be expected with the combination of all factors at present, the composite benchmark price for Metro Vancouver residential properties is actually 0.2% lower than it was three years ago. In other words, the residential market is still recovering its value from earlier price declines brought about by government measures to cool the overheated Metro Vancouver bubble. The long-term investment value in Metro Vancouver housing is still high and the market’s resilience is demonstrating itself at the present time. If you are looking to buy a single family detached home, you should move as quickly as you can in this current upward price trend; and if you are a prospective condominium or townhouse buyers, it is an excellent time to find a good price. Please consult my comparative benchmark prices in the selected geographical areas below. There you will be able to see the month-over-month price changes for comparable homes in areas clustered around the overall Metro Vancouver benchmark. If you would like more information on any specific area or property type, please don’t hesitate to call me. I will be happy to advise you with a more detailed market comparison.   

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of December was $1,554,600, an increase of 1.0% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,161,700 and Sunshine Coast at $702,500. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,584,700, an increase of 0.3% from the preceding month; Port Moody at $1,569,300, an increase of 1.6% from the preceding month; and Burnaby South at $1,579,700, an increase of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East $1,545,400, an increase of 0.6% from the preceding month; Burnaby North at $1,536,300, an increase of 0.8% from the preceding month; and Burnaby East at $1,312,100, an increase of 2.1% from the preceding month. 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of December was $813,900, a decrease of 0.1% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,141,600 and Maple Ridge at $557,700.  The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $817,00, a decrease of 0.6% from the preceding month; Vancouver East at $897,400, a decrease of 0.4% from the preceding month; and North Vancouver at $1,010,000, a decrease of 2.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South $796,600, a decrease of 0.9% from the preceding month; Burnaby North at $751,000, an increase of 1.1% from the preceding month; and New Westminster at $745,400, a decrease of 1.4% from the preceding month. (Squamish was excluded here as it is too far out for my clients.)

Condominiums

 

The benchmark price for a condominium in Metro Vancouver at the end of December was $676,500, no change the from the preceding month. The extremities of this average were West Vancouver at $1,092,100 and Maple Ridge at $367,200. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $732,500, an increase of 1.0% from the preceding month; Vancouver West at $764,300, a decrease of 2.5% from the preceding month; and West Vancouver at $1,092,100, a decrease of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $656,300, no change from the preceding month; Burnaby South at $655,500, a decrease of 0.4% from the preceding month; and Richmond at $652,600 an increase of 0.1% from the preceding month. 

 

Let me help

I am active in many areas of real estate so please don’t hesitate to ask me if there are other ways in which I can help you.  My experience in banking and finance will assist you in your mortgage planning. Or you if are already settled in your home and are thinking of renovations, I can recommend reputable tradespeople who provide quality work at reasonable rates. It gives me great pleasure to help my clients in any way I can.