METRO VANCOUVER
Prices beginning to move upwards; slow sales allow inventory to replenish
Metro Vancouver’s housing market continued its sluggish performance last month as many home buyers remain sidelined by the country’s high mortgage rates. The Bank of Canada’s latest rate announcement one week ago (March 8) held the current policy rate at 4.5% There are welcome signs that the national consumer index inflation rate is headed downwards. After Canada’s Consumer Price Index inflation reached over 8% last summer, the country’s core inflation is now around 3.5%, although certain segments of the economy are still much higher. However, it is unlikely that the Bank will announce a rate decrease until inflation is firmly under control. Prospective home buyers face steep mortgage rates, which have risen as a result of the central bank’s higher lending rate to commercial banks. At present, five year fixed mortgages are running around 5.0%) and five year variable rates closer to 6.0%. Home sales in Metro Vancouver at the end of February were down by 33% from the 10-year average, closing at the end of last month with a total of 1,808, and a decrease of 47.2% for the same period one year ago. However, these retrospective figures are not as bad as they may first appear. There were some signs of vibrancy indicating that the market is beginning to recover. February’s sales were nearly 77% higher than in the preceding month, and in many segments it showing a rise in housing prices. New listings in February reached 3,467 across all property types, a 36.6% increase over the same month one year ago, and a 5.2% increase over the preceding January this year. The annual rate of increase in new listings for this winter month, a period when market activity is typically slower, can been seen as another sign of optimism in the marketplace despite slumping sales over the past several months. Buyers who are making purchases during the current period, do have a reasonably good selection of homes to choose from, despite the actual low number of new listings. With slower sales, inventory is being replenished, albeit slowly each month. At the end of February total number 7,868 homes listed for sale in Metro Vancouver, an increase of 16.7% over the same period last year, and a 5.2% increase over the preceding month of January. As mentioned above, prices are moving upwards in many housing market segments, and this is reflected in the composite benchmark price of $1,123,400 for a residential property in Metro Vancouver at the end of February, a 1.1% increase over the preceding month.
I invite you to examine my monthly selection of benchmarks prices for each property type in different areas of Metro Vancouver in the section below. This will serve as guide for your purchasing or listing consideration. However, remember that benchmarks are averages for comparable homes in an area. They are often made up of a wide range of particular prices within the overall average. By noting the extremities given for each benchmark, you can gather a better understanding of the market in each area. The month-over-month rate of change will also provide you with some insight into the level of market activity in an area, which is typically reflected in the monthly fluctuations. If you would like additional information on any neighborhood in Metro Vancouver, please don’t hesitate to call me. I will be happy to help you with the most-up-to-date market data on prices. And if you are thinking of selling, I can also develop a Customized Market Analysis for your home to guide you in selecting the optimal asking price in the current market. I love to help my clients. Please call if you have any questions at all.
Detached homes
The benchmark price for a single-family detached home in Metro Vancouver at the end of February was $1,813,100 an increase of 0.7% from the preceding month. The extremities of this average were West Vancouver at $3,051,800 and Sunshine Coast at $868,100. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $1,841,100, an increase of 0.8% from the preceding month; Port Moody at $1,969,900, a decrease of 0.3% from the preceding month; and Burnaby South at $1,997,200, an increase of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,729,700, an increase of 0.5% from the preceding month; Coquitlam at $1,694,000, an increase of 0.3% from the preceding month; and Vancouver East at $1,677,300, an increase of 0.8% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of February was $1,033,500, an increase of 1.8% from the preceding month. The extremities of this average were Whistler at $1,406,600 and Sunshine Coast at $709,800. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,052,500, an increase of 2.9% from the preceding month; Richmond at $1,083,100, an increase of 1.6% from the preceding month; and North Vancouver at $1,026,200, an increase of 4.1% from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $999,900, an increase of 2.5% from the preceding month; Tsawwassen at $999,700, a decrease of 0.7% from the preceding month; and Port Moody at $984,700, a decrease of 1.3 % from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of February was $732,200, an increase of 1.6% the from the preceding month. The extremities of this average were West Vancouver at $1,228,900 and Maple Creek at $507,500. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $735,800, an increase of 2.1% from the preceding month; North Vancouver at $763,700, an increase of 2.0% from the preceding month; and Burnaby South at $788,800, an increase of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Tsawwassen at $730,100, an increase of 2.4% from the preceding month; Port Moody at $705,400, an increase of 4.2% from the preceding month; and Burnaby North at $702,200, an increase of 0.8% 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.