METRO VANCOUVER

December closes with declines in sales and listings; January brings hopeful outlook    

Like its namesake Janus, the ancient Roman deity with two opposite faces, the month of January has prospective buyers and sellers in Metro Vancouver’s real estate market looking both backwards and forwards. While 2023 may be remembered for its record high mortgage rates, a second consecutive year of declines in home sales as well as new listings, and price fluctuations in both directions as the market rebalanced in its post-covid period, the market closed with overall home prices up an average of 5.0% from the previous year. It is difficult to determine exactly how price levels may have varied according to relative supply and demand during the year, but on the most recent month-over-month comparison we can see this past December was weak in both attracting buyers and well as sellers. Total home sales reached 1,333 across all property types, down 21% from the preceding November total of 1,689. Similarly, new listings in December came in at 1,327, a drop of 60% from November’s total of 3,369. On a 10 year comparison, the sales decline is 36% below the seasonal average, while new listings are down by 23%. The available inventory at the end of December 2023 was 8,802 homes, a 19.4% decline from the preceding month of 10,931 homes. Still, on a 10 year comparison, the available inventory at the end of 2023 managed to squeak ahead of the seasonal average by 0.3%. Market watchers are now looking forward to forecasted interest rate cuts by the Bank of Canada starting in the second half of 2024. With considerable pent-up demand by home shoppers who have been sidelined by high mortgage rates for some time, the market may well see a surge in sales and new listings this spring. Home prices may then also rise, depending on whether new listings can meet the pace of the expected rise in demand. I encourage prospective buyers to watch this trend carefully, as waiting for further interest rate reductions may mean you end up facing higher prices. At the end of December 2023, the composite benchmark price for a residential property in Metro Vancouver was $1,168,700, a 1.4% decrease from the preceding month.

You can see the benchmark prices for comparable homes in each property type for a selection of areas around Metro Vancouver below. Each benchmark is an average made up of specific prices within the upper and lower extremities as shown. These benchmarks can serve as guide for your shopping but if you wish to find specific asking prices in any area, please give me call. This month you will see that across all property types, the month-over-month prices changes are predominantly decreases with very few exceptions. If you are eager to find a home, there may be some good buying opportunities at the present time. I can provide you with the most up-to-date listing prices and am happy to answer any questions. And if you are considering listing your home for sale, I can prepare Customized Market Analysis for your property and advise you on the optimal listing price in the current market. Please don’t hesitate to call for any reason. I am happy 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 December was $1,984,400, a decrease of 0.9% from the preceding month. The extremities of this average were Vancouver West at $3,465,300 and Sunshine Coast at $826,400. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,054,200, a decrease of 0.2% from the preceding month; Port Moody at $2,090,100, an increase of 0.6% from the preceding month; and Richmond at $2,111,400, a decrease of 2.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East at $1,857,100, a decrease of 0.6% from the preceding month; Vancouver East at $1,812,700, a decrease of  0.4% from the preceding month; and Coquitlam at $1,777,800, a decrease of 0.6% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of December was $1,072.700, a decrease of 1.8% from the preceding month. The extremities of this average were Whistler at $1,493,200 and Maple Ridge at $750,500. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,494,000, a decrease of 0.3% from the preceding month; Vancouver West at $1,424,700, a decrease of 2.5% from the preceding month; and Whistler at $1,493,200, a decrease of 2.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East at $1,072,200, a decrease of 3.4% from the preceding month; Burnaby South at $1,035,000, an increase of 2.9% from the preceding month; and Coquitlam at $1,025,600, a decrease of 1.6% from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of December was $751,300, a decrease of 1.5% from the preceding month. The extremities of this average were West Vancouver at $1,271,200 and Maple Ridge at $533,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $783,800, a decrease of 3.0% from the preceding month; North Vancouver at $798,600,  a decrease of 0.7% from the preceding month; and Burnaby South at $809,200, a decrease of 0.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $744,000, a decrease of 1.3% from the preceding month; Port Moody at $735,000, a decrease of 0.6% from the preceding month; and Burnaby North at $732,800, a decrease of 1.1% 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.