METRO VANCOUVER

Upward prices amid vibrant sales; new listings replenish supply

Following a sharp sales spike in the first month this year, Metro Vancouver’s housing market saw signs of rising prices in February after Canada’s monetary policy finally induced an economic slow-down during 2023.  Last month a few areas saw price declines, all rather modest, while the remainer saw a range of price increases: single family home up between 0.1% and 4.5%; townhouses between 0.6% and 5.5%; and condominiums between 0.1% and 5.9%. The good news for home buyers was February’s increase in new listings of 4,560 homes. This was a 20% increase over January’s new listings of 3,788 properties. The increase also represented a 31% increase over February one year ago, and was very close (0.2%) to the 10-year seasonal average. Nonetheless, upward price pressure was evident as home sales across the region reached 2,070, 45% more than in January, although still 23% below the 10-year average. It is notable, however, that February’s sales uptick comes while interest rates are still at their highest level in years. Last week’s Bank of Canada announcement continued to hold its policy rate at 5%, keeping most new mortgage borrowing costs in the 6% to 7% range. It was the fifth consecutive announcement maintaining the same rate by the central bank, but there is general consensus among economists that rate cuts will begin later this year. With the expected lowering of mortgage interest rates to follow, one can reasonably expect an increase in demand will drive more sales as well. The central bank has said it will reduce rates in steps similar in size to its increases, reaching its inflation target of 2% some time in 2025. In the meantime, without supply keeping pace with demand, price rises can be expected to continue. At the end of February, the composite benchmark price for a residential property in Metro Vancouver was $1,183,300, a 1.9% increase over the preceding month.

In my monthly selection of comparative benchmark prices below you will find a guide to prices in different geographical areas of Metro Vancouver. There are three benchmark prices clustered on each side of the benchmark average of each property type. The month-over-month prices changes typically result from  fluctuations based on current sales intensity in a particular area. You can use these benchmark prices to locate recent prices changes in properties as a guide for you budget. However, remember that benchmarks are averages. By noting the extremities of each overall average benchmark provided, you can get an idea of the range of prices making up the average. In a broad range you may find specific prices for properties that more closely match your budget. If you would like more  detailed information on a specific listing in any neighbourhood, please don’t hesitate to call me. I can provide the most up to date information for current listings. And if you are considering listing your home for sale, I can prepare a Customized Market Analysis for your property and advise you on the optimal listing price in the current market conditions. Please don’t hesitate call if you need any assistance for your real estate transactions. I am happy to help in every way.         

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of February  was $1,972,400, an increase of 1.6% from the preceding month. The extremities of this average were Vancouver West at $3,434,700 and Sunshine Coast at $847,800. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $2,040,400, a decrease of 1.5% from the preceding month; Burnaby North at $2,058,100, an increase of 2.1% from the preceding month; and Richmond at $2,128,500, an increase 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 $1,831,800, a decrease of 0.5% from the preceding month; Coquitlam at $1,801,800, an increase of  2.4% from the preceding month; and North Vancouver at $2,216,600, an increase of 1.3% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of February was $1,094,700, an increase of 2.6% from the preceding month. The extremities of this average were Vancouver West at $1,526,500 and Sunshine Coast at $741,100. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,108,100, an increase of 4.8% from the preceding month; Richmond at $1,120,500, an increase of 1.9% from the preceding month; and North Vancouver at $1,342,000, an increase of 2.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,061,900, an increase of 2.8% from the preceding month; Burnaby South at $1,015,100, an increase of 2.4% from the preceding month; and Port Moody at $1,005,100, an increase of 0.6% from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of February was $770,700, an increase of 2.5% from the preceding month. The extremities of this average were West Vancouver at $1,339,900 and Maple Ridge at $533,100. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $780,300, an increase of 0.1% from the preceding month; North Vancouver at $792,100, an increase of 2.2% from the preceding month; and Burnaby South at $810,500, an increase of 0.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $769,800, an increase of 4.9% from the preceding month; Port Moody at $736,200, an increase of 5.9% from the preceding month; and Coquitlam at $729,300, an increase of 3.1% 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.