METRO VANCOUVER
Surge in new listings; plentiful supply; opportune time for buyers
Metro Vancouver’s residential market sprang out of the gate with an energetic start in January, with both sales and new listings seeing increases over the same month last year. The new year’s opening month registered 1,552 home sales, close to 9% higher than one year ago. The market is definitely picking up momentum as Canada’s inflation rate has dropped dramatically. The national inflation rate is now below the Bank of Canada’s target rate of 2%, dropping to 1.8% in December from 1.9% in November. With market confidence still growing, housing demand has also spurred a host of new listings. January’s 5,566 newly listed homes was a 232% increase over new listings in December, bringing Metro Vancouver’s total available inventory at the end of January to a plentiful 11,494 homes across all property types. This is more than 33% above the same period one year ago, and 31% higher than the 10-year seasonal average. Other welcome news for home buyers is the latest Bank of Canada rate cut of 25 basis points at the end of January. The central bank’s policy rate, underlying commercial mortgage variable rates, is now at 3%, down from its inflation fighting high of 5% in 2023. This new low is especially good news for many home owners facing renewals on their mortgages for the first time since interest rates increased in 2022. The next Bank of Canada rate announcement is scheduled for March 12. One major factor in the Bank’s next rate decision could be the effect of threatened U.S. tariffs on Canada’s economy, in which case the BoC may make another rate cut as an economic stimulus. Prospective buyers who have been waiting patiently for months for more favourable conditions will find it an opportune time to make their desired home purchase. Prices normally increasing with higher demand have been moderated with the surge of new listings, so buyers are encouraged to make purchase now. At the end of January, the composite benchmark price for a residential property in Metro Vancouver was $1,173,000, an increase of 0.1% from the preceding month.
Please review my monthly guide in the section below to benchmark prices in different areas of Metro Vancouver. I have selected a cluster of the closest benchmark prices closest to the upper and lower sides of the overall average for each property type. The month-over-month price fluctuations provide an insight into the relative demand intensity for each area, while the extremities of each average give you an ideas of the range of prices making up the average. However, it is important to remember that averages may conceal a particular price that is attractive to you. So please don’t hesitate to call me for the most up-to-date information on any neighbourhood you may be interested in. And if you are thinking about listing your home for sale, I can also prepare a Customized Market Analysis for you property and advise you on the optimal listing price in the current market conditions. 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 $2,005,400, an increase of 0.4% from the preceding month. The extremities of this average were Vancouver West at $3,427,100 and Sunshine Coast at $924,000. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $2,060,900, an increase of 0.7% from the preceding month; Richmond at $2,143,900, an increase of 0.1% from the preceding month; and Burnaby North at $2,147,700, an increase of 0.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,957,100, no change from the preceding month; Vancouver East at $1,841,800, a decrease of 0.7% from the preceding month; and Coquitlam at $1,780,100, an increase of 0.5% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of January was $1,015,600, a decrease of 0.3% from the preceding month. The extremities of this average were: Whistler at $1,629,7700 and Sunshine Coast at $738,700. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,110,800, a decrease of 2.1% from the preceding month; Vancouver East at $1,140,300, a decrease of 0.8% from the preceding month, (Squamish was not counted here because it is too far out for my clients); and North Vancouver at $1,369,800, a decrease of 4.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Tsawwassen at $1,001,500, a decrease of 0.6% from the preceding month; Port Moody at $1,020,700, a decrease of 1.0% from the preceding month; and Ladner at $1,029,600, a decrease of 0.6% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of January was $748,900, a decrease of 0.2% from the preceding month. The extremities of this average were: West Vancouver at $1,189,600 and Pitt Meadows at $604,000. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East $778,900, a decrease of 1.2% from the preceding month; North Vancouver at $784,800, a decrease of 1.4% from the preceding month; and Burnaby South at $829,100, a decrease of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $735,400, a decrease of 2.2% from the preceding month; Burnaby North at $733,300, a decrease 0.2% from preceding month; and Richmond at $742,200, an increase of 1.1% 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.