Metro Vancouver

New year begins with home sales at 10-year low; price declines slowing  

Residential market activity in Metro Vancouver at the close of 2022 continued below normal for the season, with December’s sales down nearly 38% on the 10-year average. Following last year’s series of central bank rate increases, higher mortgage costs appear to have reigned in the enthusiastic pace of sales during the peak of the pandemic period. However, Canada’s consumer inflation remained stubbornly high at 6.7% as the new year began. Although the next Bank of Canada rate announcement is two weeks away, there is a broad consensus among economists that the Bank will not increase its key rate at this time. Instead it is expected to keep the current rate of 4.25% for some time while the longer term effect is felt across the economy this coming year. Last month’s home sales in Metro Vancouver totalled 1.295, close to 20% lower than the preceding month, and 52% less than one year ago. New listings in December were also down 60.5% from the previous month, and 38% lower than the same period one year ago. However, Metro Vancouver’s available housing stock provides a ample selection with a good selection across all property types at present. last month’s 1,206 new listings brought the total inventory of available homes at the end of December to 7,384, 41% higher than one year earlier, while a 19.65 decrease from one month earlier in 2022. The composite benchmark price for a residential property in Metro Vancouver at the end of December was $1,114,300, a 3.3% decrease from one year earlier, and 1.5% decrease from November 2022. Over the last six months of 2022, the composite benchmark price has decreased by 9.8%.   

In the section below, you will find the latest bench benchmark price for each of the three property types along with the month-over-month price change in different areas of Metro Vancouver most closely clustered around the benchmark. The extremities of the benchmark are also noted to give you the range of prices making up the benchmark average. This will serve as guideline for shoppers looking for homes within their budget; however, it is important to remember that benchmarks are averages and there are often significant differences in specific prices within an particular area. The price changes are typically a refection of current market activity in an area. At present, the overall trend continues with declining prices (with a few exceptions) but it should be noted that the rate of decline is now slowing. This suggests the downward pressure on prices may be easing. Prospective home shoppers may wish to watch this space each month to track prices in the area you are interested in. Please feel free to contact me for the most up-to-date market information or any other questions you may have. I keep a close eye on home listings and prices and am happy to help anyone in the home search. If you are considering listing your home for sale, I can develop a Customized Market Analysis for  you property and advise you on the optimal listing price in this market. I love helping my clients so don’t hesitate to call for any reason.          

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of December was $1,823,300, a decrease of 1.6% from the preceding month. The extremities of this average were West Vancouver at $3,090,800 and Sunshine Coast at $912,000.  The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $1,889,600, a decrease of 1.7% from the preceding month; Port Moody at $1,955,900, a decrease of 1.2% from the preceding month; and Richmond at $2,978,200, a decrease of 2.7% from the preceding month. The three municipalities closest to the benchmark on the lower side  of the average were: Coquitlam at $1,698,400, a decrease of 1.7% from the preceding month; Vancouver East at $1,677,600, a decrease of 2.3% from the preceding month; and Burnaby East at $1,675,400, a decrease of 0.1% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of December was $1,012,700, a decrease of 1.5% from the preceding month. The extremities of this average were Whistler at $1,347,900 and Sunshine Coast at $654,100. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,040,300, a decrease of 1.1% from the preceding month; Richmond at $1,049,800, an increase of 0.2% from the preceding month; and North Vancouver at $1,225,000, a decrease of 0.8% from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $986,200, a decrease of 1.4% from the preceding month; Coquitlam at $978,400, a decrease of 1.6% from the preceding month and Burnaby South at $948,300, an increase of 0.4% from the preceding month. (Squamish is excluded here because it is too far our for my clients).

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of December was $713,700, a decrease of 0.9% the from the preceding month. The extremities of this average were West Vancouver at $1,201,600 and Sunshine Coast at $477,300. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $752,100, no change from the preceding month; North Vancouver at $756,000, a decrease of 1.5% from the preceding month;  and Burnaby East at $7683,100, a decrease of 1.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were:  Tsawwassen at $695,100, a decrease of 3.2% from the preceding month;  Burnaby North at $792,500, a decrease of 1.7% from the preceding month; and Port Moody at $680,200, a decrease of 0.5% 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.