METRO VANCOUVER

Sales continue slow-down; new listings spike. Some price increases

Metro Vancouver’s residential sales for the first month of this year showed typical seasonal slowing while combined with the continuing effect of higher mortgage rates gaining more traction. Home sales in January dropped close to 43% below the 10-year average for the month. The 1,022 residential sales recoded during January were a 55.3% decline from the month’s 2,285 sales one year ago, and down 21.1% from homes sold in December 2022. However, the market showed signs of coming back to life with a sharp increase in new listings. While below new listings recorded for the same month last year by 21%, January’s new listings spiked more than 174% from the previous month reaching a total of  3,297 new listings across all property types. The was a considerable boost to Metro Vancouver’s inventory, rising to 7,498 available homes at the end of January. The new supply figure represents 32.1% more than the same month one year earlier, and a 1.3% increase over the inventory at end of 2022. However, Many prospective buyers remained side-lined at present while mortgage rates remain high. With the Bank of Canada’s most recent rate increase at the end of January, the key policy rate now stands at 4.50%. This is the highest borrowing rate the central bank has had in over 20 years. Commercial mortgage rates have been pushed up by the BoC rate since last spring, and current the slow down in residential sales has been expected. The Bank of Canada has now paused further  rate increases while expecting the rate of inflation to comes down sharply over the coming months. The housing market may see some price declines during this period, but buyers are reminded that any declines are measured against the peak prices reached last year. However, it is worth noting that despite predictions of general price declines, there are still some increases occurring in specific areas, most typically in townhouses and condominiums. For example, last month saw the townhouse benchmark price in Ladner increase by 5.3%; in Tsawwassen an increase  of 4.5%; and in Richmond by 1.5%.  Similarly, the benchmark for condominiums rose by 4.6% in Richmond and 3.1% in Ladner.

The benchmark price for a residential property in Metro Vancouver at the end of January was $1,111,400, down 0.3% from the preceding month.  In the selection below, benchmark prices for different areas of Metro Vancouver provide a useful guide for comparing prices in each property type closest to the benchmark for a geographical area. The month-over-month price change is also provided as a general indicator of relative price fluctuations typical of current market activity. It is important to remember that benchmark prices are average prices for similar home. The extremities of each average is also provided to show the range of prices making up the average. For more detailed information on any property type in an area of you choice, please call me. I can provide you with up-to-date details for any home you may have be interested in. And if you are considering listing your home, I can prepare a Customized Market Analysis to guide you in listing price. Let me know if I can help in any way. I love helping my clients.

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of January was $1,801,300 a decrease of 1.2% from the preceding month. The extremities of this average were West Vancouver at $3,074,400 and Sunshine Coast at $877,500.  The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $1,826,800, a decrease of 3.3% from the preceding month; Richmond at $1,965,700, a decrease of 0.6% from the preceding month; and Burnaby South at $1,988,600, a decrease of 2.5% from the preceding month. The three municipalities closest to the benchmark on the lower side  of the average were: Coquitlam at $1,689,900, a decrease of 0.5% from the preceding month; Burnaby East at $1,673,400, a decrease of 0.1% from the preceding month; and Vancouver East at $1,664,900, a decrease of 0.8% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of January was $1,020,400, an increase of 0.8% from the preceding month. The extremities of this average were Whistler at $1,367,300 and Sunshine Coast at $691,100. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,022,800, a decrease of 1.7% from the preceding month; Richmond at $1,055,600, an increase of 1.5% from the preceding month; and North Vancouver at $1,235,400, an increase of 0.8% from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $997,500, an increase of 1.1% from the preceding month; Coquitlam at $975,600, a decrease of 0.3% from the preceding month; and Burnaby South at $948,700,  no change from the preceding month. (Squamish is excluded here because it is too far out for my clients).

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of January was $720,700, an increase of 1.0% the from the preceding month. The extremities of this average were West Vancouver at $1,196,600 and Sunshine Coast at $511,300. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $720,700, an increase of 4.6% from the preceding month; North Vancouver at $749,000, a decrease of 0.9% from the preceding month;  and Burnaby South at $758,800, 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 $696,600, an increase of 0.6% from the preceding month;  Ladner at $791,100, an increase of 3.1% from the preceding month; and Port Moody at $677,200, a decrease of 0.4% 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.