METRO VANCOUVER
Sales slower as new year begins; low inventory drives prices up
Residential sales in Metro Vancouver slowed in the opening month of this year, dipping slightly from December and a drop of over 4.0% for the same period one year ago. The January 2022 home sales total of 2, 285 was a 1.5% decline from the preceding month but still more than 25% above the 10-year January average. However, the year’s initial slow down from the extraordinary pace of 2021 has not reduced competition among buyers as the supply of available homes remains low. The total number of homes listed at the end of January was 5,663, down nearly 32% from one year earlier. New listings did improve somewhat in January compared with the severe downturn in 2021, and the 4,170 new homes listed in January represented a 114% increase compared with December 2021. Nonetheless, while winter normally sees slower sales, the low supply remains a critical factor on the upward price pressure in what continues to be a sellers’ market. Interest rates are still at historic lows with the Bank of Canada’s rate increase delayed from last month’s expected rate increase. The central bank has signalled that rate increases will likely come soon, which is expected to be accompanied by mortgage rates rising along with the base rate increase. While this may have a further dampening effect on the market, the supply of housing in Metro Vancouver will require public policy action to meet the high demand, and upward price pressure will likely continue. At the end of January, the composite benchmark price for a residential property in Metro Vancouver was $1,255,200, a 2.0% increase from the preceding month.
In my monthly selection of benchmark prices for each property type below, you will find a cluster of prices close the benchmark for comparable properties in different areas of Metro Vancouver. Please use this selection as a guide to the finding the type of residential property you are seeking within your financial capacity. Each of the benchmarks also shows the percentage of increase in the price from the preceding month. Benchmarks are averages of comparable homes within an area, so use as a general guide; however, remember there are often specific price fluctuations of particular properties that are unpredictable and do not reflect the benchmark average. For example, if you are looking for townhouse be sure to note the sole decrease in benchmark averages at the end of last month was in Vancouver East, which had a 3.0% decline from the preceding month. This is an atypical drop and may be of interest to buyers who at the margin of their spending capacity. Monthly fluctuations normally follow trends, which have been upward for some time, so any decreases may be of interest to home shoppers. If you are interested in a specific area, please do not hesitate to call me. I will be happy to provide you more details for the neighborhood selected. For anyone interested in listing their home, I can also prepare a detailed Comparative Market Analysis on your property and help you determine the optimal listing price in the current market.
Detached homes
The benchmark price for a single-family detached home in Metro Vancouver at the end of January was $1,953,000, a 2.2% increase from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,445.400 and Sunshine Coast at $900,000. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $2,020,900, an increase of 3.7% from the preceding month; North Vancouver at $2.025,800, an increase of 2.9% from the preceding month; and Richmond at $2,033,600, an increase of 0.1 from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South $1,9098,800, an increase of 2.2% from the preceding month; Burnaby North at $1,866,200, an increase of 3.5% from the preceding month; and Vancouver East at $1,808100, an increase of 2.0% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of January was $1,029,500, an increase of 2.5% from the preceding month. The extremities of this average were Whistler at $1,371,000 and Sunshine Coast at $641,900. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,053,400 a decrease of 3.0% from the preceding month; North Vancouver at $1,237,600, an increase of 3.2% from the preceding month; and Vancouver West (not West Vancouver) at $1,311,900, an increase of 0.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $1,027,300, an increase of 3.8% from the preceding month; Coquitlam at $938,300, an increase of 3.7% from the preceding month; and Tsawwassen at $936,900, an increase of 3.8% from the preceding month
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of January was $775,700, an increase of 1.8% the from the preceding month. The extremities of this average were West Vancouver at $1,151,200 and Maple Ridge at $488,600. Only two municipalities were on the higher side of the average: Vancouver West at $853,400, an increase of 1.2% from the preceding month, and West Vancouver at $1,151,200, an increase of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $764,800, an increase of 1.4% from the preceding month. Burnaby East at $762,700, an increase of 1.4% from the preceding month; and Richmond at $756,600, an increase of 2.1% from the preceding month.
I can help
One of the ways I work hard for my clients is to stay abreast of the most recent events in the real estate market. By watching price changes each month for all property types, I am able to give you the most up-to-date advice for both buying and selling. I am always happy to chat with you about any of your real estate questions. The is no obligation and no pressure. I am here to help. Please feel free to call me.