METRO VANCOUVER
New Year starts with sale spike; lagging supply may mean price increases
Following one of the slowest years in a decade, home sales in January 2024 jump- started the Metro Vancouver residential market with an electrifying surge closing the first month of the year with a 38.5% increase over the same period one year ago. While the total home sales figure of 1,427 was still below the 10-year seasonal average by 20%, January’s total was nonetheless 7.5% above the preceding month of December, a strong rebound in a typically slow period for real estate activity. Whether this is a harbinger of more pent-up demand to explode as Spring approaches next month remains to be seen. Many prospective home buyers are eagerly waiting to see if interest rate cuts will begin later this year. The Bank of Canada kept its policy rate at 5.0% in its most recent announcement, but rate cuts are widely expected in the second half of the year. However, you should be forewarned that a critical increase in new listings did not accompany January’s sales, which can only lead to higher prices if this trend continues. January’s new listings for all property types across Metro Vancouver increased 14.5% over the same period last year, but this was still more than 9.0% below the 10-year seasonal average. We must remember, though, that December 2023 saw an extraordinary 65% month-over-month decline in new listings that mostly recovered with January’s new listings reaching 3,788. This boost in available homes raised the total available inventory at the end of January to a 8,633, a slight dip from the 8,802 listed homes at the end of December. Prospective buyers will therefore be watching for new listings to pick up during this current month of February. While Metro Vancouver market was still balanced at the end of January, it has moved very close to shifting into sellers’ market territory. This is typically a period when the sales-to-listing ratio stays above 20% for a sustained period. At the end of January, the ratio was an average of 17.2% for all property types, although the ratio for townhouses and condominiums moved into seller’s territory at 22.9% and 19.9% respectively. Market watchers should also watch for upward price movement if the rate of supply does not improve. At the end of January, the composite benchmark price for a residential property in Metro Vancouver was $1,161,300, a 0.6% decrease from the preceding month.
Please review my selection below of comparative benchmark prices for each property type in different geographical areas below. You will also find the month-over-month price change that can be seen as a guide to the current market activity in the area. However, benchmarks are averages so be sure to note the range of prices within the average indicated by the extremities for each benchmark provided. Remember that an average price is just a guide and can conceal a specific price that may be attractive to you, so please call me if you would like more detailed information. I can provide you with the most up-to-date information for any listing. And if you are interested in listing you home for sale, I can advise you on the optimal asking price in the current market. Please don’t hesitate to call, I love to help my clients in any way I can.
Detached homes
The benchmark price for a single-family detached home in Metro Vancouver at the end of January was $1,942,400, a decrease of 1.1% from the preceding month. The extremities of this average were Vancouver West at $3,301,000 and Sunshine Coast at $837,200. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,015,300, a decrease of 1.9% from the preceding month; Port Moody at $2,070,800, a decrease of 0.9% from the preceding month; and Richmond at $2,079,100, a decrease of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,852,600, an increase of 2.2% from the preceding month; Vancouver East at $1,840,700, a decrease of 0.9% from the preceding month; and Coquitlam at $1,759,500, a decrease of 1.0% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of January was $1,066,700, a decrease of 0.6% from the preceding month. The extremities of this average were Vancouver West at $1,446,500 and Sunshine Coast at $725,8000. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,100,100, an increase of 0.6% from the preceding month; North Vancouver at $1,315,000, a decrease of 1.3% from the preceding month; and Vancouver West at $1,446,500, a decrease of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East at $1,057,700, a decrease of 1.4% from the preceding month; Coquitlam at $1,032,800, an increase of 0.7% from the preceding month; and Port Moody at $999,000, a decrease of 0.9% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of January was $751,900, an increase of 0.1% from the preceding month. The extremities of this average were West Vancouver at $1,287,600 and Maple Ridge at $530,900. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $779,100, a decrease of 0.6% from the preceding month; North Vancouver at $792,100, a decrease of 0.8% from the preceding month; and Burnaby South at $805,600, a decrease of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $733,700, a decrease of 0.8% from the preceding month; Richmond at $733,800, a decrease of 1.4% from the preceding month; and Vancouver East at $692,000, a decrease of 0.2% 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.