METRO VANCOUVER

Price declines, plentiful inventory, balanced market attracting buyers

Metro Vancouver’s 1,827 home sales in February were close to an 18% increase over January, continuing the market’s energetic start at the beginning of the year. While down on a 10-year seasonal average by 29%, the Metro Vancouver residential market has settled into a balanced condition with an excellent selection of listed homes across all property types. February’s 5,057 new listings were 11% more than recorded for the same period one year earlier. The new listings brought the available inventory up to a total of 12,744 homes, over 32% more than one year ago, and over 36% higher than the 10-year seasonal average. Home shoppers can take advantage of several factors in the current market that make it an opportune time to make a purchase. With the strong inventory and rising demand, home prices are still stable, with many areas showing some modest declines. Notably, more significant declines were seen in single detached family home prices in Richmond which dropped 2.9% last month, while townhouses in Vancouver West dropped 4.3%, and condominiums in Port Coquitlam declined 2.3%. Also noteworthy, a growing number of economists predict another Bank of Canada interest rate cut next week. As Canada faces the threat of rising prices from a looming trade war, the central bank appears poised to announce another policy rate cut of 25 basis points today, March 12. This would bring current policy rate of 3.% down to to 2.75%. The policy rate underpins commercial bank variable mortgage rates, which are currently between 4% and 4.5% at mortgage brokers major banks. Five year fixed mortgage rates, which are set on bond yields, are as low as 3.84%. With lower mortgage rates on the horizon, and the robust inventory, demand may be expected to increase as the spring buying season approaches. Prospective home buyers should consider purchases in this favorable buying period. At the end of February, the combined benchmark price for a residential property in Metro Vancouver as $1,169,100, a 0.3% decline from the preceding month.

Please review my selection of comparative benchmark prices for different areas of Metro Vancouver in the section below.  For each property type, I have clustered around the overall benchmark price the closest average prices on each side of the benchmark average. From the month-over-month price changes you can get an insight into the price fluctuations from the relative demand in the area. The extremities of each average provide an idea of the range of prices making up the average. Remember that benchmarks are averages and an actual price may be found that fits your budget more precisely. Please don’t hesitate to give me a call if you are interested in an a particular area. I can provide you with the most up-to-date information on current listings. And if you are thinking about listing your home for sale, I can prepare a Customised Market Analysis for you property and advise you on the optimal listing price in the current market. I am happy to help in any way I can with whatever real estate questions you may have.   

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of February was $2,006,100, an increase of 0.1% from the preceding month. The extremities of this average were Vancouver West at $3,493,200 and Sunshine Coast at $927,700. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,085,400, a decrease of 2.9% from the preceding month; Port Moody at $2,089,700, an increase of 1.4% from the preceding month; and Richmond at $2,139,000 a decrease of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,959,700, an increase of 0.1 from the preceding month; Vancouver East at $1,862,500, an increase of 1.1% from the preceding month; and Coquitlam at $1,796,600, an increase of 0.9% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of February was $1,087,100, a decrease of 1.7% from the preceding month. The extremities of this average were Vancouver West at $1,414,300 and Sunshine Coast at $629,200. The three municipalities closest to the benchmark on the higher side of the average were Burnaby South at 1,108,700, an increase of 4.9% from the preceding month; Richmond at $1,109,300, a decrease of 0.2% from the preceding month; and  Vancouver East at $1,169,800, an increase of 2.6%% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were Ladner at $1,041,400, an increase of 1.1% from the preceding month; Coquitlam at $1,056,100, a decrease of 0.7% from the preceding month; and Port Moody at $1,011,300, a decrease of 0.1% from the preceding month.  

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of February was $747,500, a decrease of 0.1% from the preceding month. The extremities of this average were: West Vancouver at $1,215,800 and Sunshine Coast at $447,000. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $784,900, an increase of 0.8% from the preceding month; North Vancouver  at $804,100, an increase of 2.5% from the preceding month; and Vancouver West at $815,700, an increase of 0.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $735,400, a decrease of 0.2% from the preceding month; Burnaby North at $732,000 a decrease 0.2% from preceding month; and Coquitlam at $732,000, an increase of 0.3% from the preceding month.

 

Let me help

 

There are many ways I can help you with your real estate transactions. Please let me know how I can help in these challenging times. You may need help in managing your home ownership plans, or in adjusting your financial strategy for a home purchase. Perhaps you are thinking of listing your home for sale and want to understand the market to set your asking price. Let me help. I have a 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.