Prices rising across all residential types in Metro Vancouver; high demand creates seller’s market
Metro Vancouver’s residential market saw an increased rate of price rises last month, as high demand continues to trend upwards. The higher-than-normal seasonal sales activity has created a seller’s market, with competition among home buyers intensifying. Where recent months have seen average monthly price changes sill fluctuating with both increases and decreases, February’s changes (see selected comparisons below) see only increases in each housing type across every municipal area – except one – in Greater Vancouver. The sole exception was Burnaby East where modest average price declines of 0.2% for single family detached homes and 0.9% for townhouses were the only anomalies. Factoring into the wide-spread prices rises is the lag in new listings. At the end of February, the total inventory of listed homes in Metro Vancouver was 8,358, a mere 0.6 increase from the preceding month. In a broader historical comparison this was a decrease of more than 9.0% from one year ago, and more than a 21% below the 10-year average. Rising prices may be causing some potential sellers to wait on the sidelines for even higher price levels before listing. However, this strategy may pose some unnecessary risk to sellers when the current market conditions can push the sale price above the listed price, owing to competition among buyers. I would encourage anyone contemplating selling their home at this time to contact me. I will be able to advise you on an optimal listing price in the present market conditions. For prospective buyers, I will help you break down the market segment of primary interest to you.
The composite residential benchmark price for the Greater Vancouver area at the end of February was $1,084,000, an increase of 2.6% from the preceding month. While observing the historical 10-year change, it is notable that February’s 10-year rise of 86.0% has moved up from January’s 10-year rise of 83.5%. This is particularly significant in a winter month when sales are normally slower than in the spring. Market analysts still point to Canada’s historically low interest rates, put in place during the Covid-19 pandemic, as the primary driver of the current high demand. However, it is important to distinguish between the composite benchmark and the average price levels of each of the three property types. As noted by the Governor of the Bank of Canada commenting recently on Canada’s housing market overall: “The housing market is not one market – we’re seeing a lot of strength in single family homes.” Indeed, in Metro Vancouver during the past month of February, single family detached homes reached a total of sales of 1,231, close to 80% more than for the same period one year earlier. However, in the Metro Vancouver market, sales of condominiums were actually higher in actual sales, with 1,759 sold in February, although with a lower annual increase of close to 66.0%. Townhouses followed with a total of 737 sales last month, but with a significantly higher increase of just over 84% from one year ago. Below is my monthly selection of month-over-month comparisons with benchmarks prices in the geographical areas closest to overall property type benchmark in Metro Vancouver. These comparisons are selected as a general guide for home shoppers searching for homes in their desired price range., or for sellers wondering about a listing price in their local area. For a more detailed market comparison, please do not hesitate to call me. I will be happy to provide you with customized market comparison for your property.
Detached homes
The benchmark price for a single-family detached home in Metro Vancouver at the end of February $1,621,200, an increase of 1.2% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,203,200 and Maple Ridge at $972,600. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $1,629,300, an increase of 2.1% from the preceding month; Richmond at $1,651,800, an increase of 3.3% from the preceding month; and Port Moody at $1,655,900, an increase of 3.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North $1,572,500, an increase of 1.7% from the preceding month; Vancouver East at $1,565,800, an increase of 1.2% from the preceding month; and Coquitlam at $1,363,000, an increase of 3.2% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of February was $839,800, an increase of 2.9% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,167,700 and Maple Ridge at $594,300. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $849,900, an increase of 3.2% from the preceding month; Vancouver East at $910,000, an increase of 1.8% from the preceding month; and North Vancouver at $1,036,300, an increase of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South at $806,200, an increase of 0.5% from the preceding month; New Westminster at $779,700, an increase of 45.3% from the preceding month; and Burnaby North at $769,400, an increase 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 February was $697,500, an increase of 3.9% the from the preceding month. The extremities of this average were West Vancouver at $1,114,810 and Maple Ridge at $373,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $739,000, a decrease of 1.2% from the preceding month; Vancouver West at $794,500, an increase of 4.2% from the preceding month; and West Vancouver at $1,114,800, an increase of 3.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $683,200, an increase of 3.0% from the preceding month; Port Moody at $671,900, an increase of 1.9% from the preceding month; and Burnaby South at $664,700, an increase of 1.1% from the preceding month.
How can I help?
I am here to help you, whatever your housing requirements. I bring experience in banking and finance to assist you in your mortgage planning and can also advise you on pricing your home at the optimal price for the prevailing market conditions. This may include renovations that will increase your home value or simply enhance your own living comfort. I can recommend excellent tradespeople who are reputable, reliable, and reasonable in their rates. It gives me pleasure to help my clients. Please don’t hesitate to call me for any real estate advice you may need.