METRO VANCOUVER

Metro Vancouver home market heating up; early signs of upward price pressure

Mid-summer temperatures are not the only thing heating up Metro Vancouver. The residential market is the hottest it’s been in years. The strong rebound two months ago from the slowdown caused by the coronavirus continued to build in July. Home sales at the end of last month were almost 10% higher than the 10-year average. With buyers able to take advantage of low mortgage rates, the pent-up demand fuelled another significant increase in July – 28% over the number of sales one month earlier. Home sales across all property types totalled 3,128 during July. This total was distributed with 45% in condominiums; 36% in detached homes; and 19% in townhouses. New listings were also up during July, bringing the total inventory at the end of the month to 12,083. However, while this figure was an increase of almost 6% over June, it is still 15.1% lower than one year ago. Nonetheless, in terms of current selection, the available inventory is still a large number in itself, and provides an a great many homes to choose from during this low interest period, I highly recommend you take a look at the ideal buying opportunities at this time. Prices are relatively stable but with new listings still somewhat slow, and increased demand on the foreseeable horizon, there is already upward price movement – as I predicted last month – across all property types. The composite benchmark price for all residential properties in Metro Vancouver at the end of July was $1,031,400, a 0.6% increase over June compared with a 0.3% decrease one month earlier.

While we still want to remain cautious about the spread of COVID-19, there is an abundance of information that can be obtained online, and I encourage buyers to take a look at my website for details on available properties. We are continuing to keep up social distancing and mask-wearing practices so this will, of course, limit the number of live home views at any given time. However, the sunny summer weather is inviting people to get out more, so this is another contributing factor to the continued rising sales activity. July was the second consecutive month this year in the Metro Vancouver market that the sales-to-active listing ratio has surpassed 20%, rising from 15% in the month of May. As a rule of thumb, it is normally the case that home prices experience upward pressure when this ratio remains above 20% over several months. I encourage readers to pay attention to this metric which I will track in this newsletter in the coming months. In the benchmark comparisons of different property types below, you will still find several examples of monthly decreases in specific neighborhoods, so it appears a bit to too early to generalize about increases across the board. Nonetheless, a careful reading will show that most monthly decreases are considerably smaller than the monthly increases. Some of this may be a result of normal market fluctuations, but it is still worth watching to see if an overall trend to price increases is developing.  Please take a look at the comparisons I have selected for you below, and remember that benchmarks are simply averages, so it’s always a possible to find an unexpected price that may be the great fit for your budget. Please feel free to call me for any details you might like about a specific area.   

Detached homes

The benchmark price for a single-family detached home in Greater Vancouver at the end of July was $1,477,800 an increase of 0.9 % from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,053,00 and Sunshine Coast at $625,100. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $1,478,4200, a decrease of 0.7 % from the preceding month; Vancouver East $1,487,300, an increase  of 1.9 % from the preceding month; and Richmond at $1,509,300, a decrease of 0.2 % from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $1,443,600 a decrease of 1.3 % from the preceding month; Burnaby East at $1,232,500, a decrease of 0.2 % from the preceding month; and Coquitlam at $1,228,300, an increase of 1.5 % from the preceding month. 

Townhouses

 

The benchmark price for a townhouse in Greater Vancouver at the end of July was $797,700, an increase of 0.9 % from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,139,900 and Maple Ridge at $547,300.  The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $799,200 an increase  of 1.1 % from the preceding month; Richmond at $801,700, an increase of 1.3 % from the preceding month; and Vancouver East at $887,700 a decrease of 0.1 % from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: New Westminster at  $758,400, an increase of 1.3 % from the preceding month; Burnaby North at $736,000, an increase of 0.2 % from the preceding month; and Coquitlam at $693,300, a decrease of 0.1 % from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in Greater Vancouver at the end of July was $682,500, an increase of 0.3 % from the preceding month.  The extremities of this average were West Vancouver at $987,100 and Maple Ridge at $361,200. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $733,200, a decrease of 1.3 % from the preceding month; Vancouver West at $794,200  in increase of 0.6 % from the preceding month; and West Vancouver at $997,100, an increase of 1.6 % from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South at $674,500, an increase of 0.6 % from the preceding month; Port Moody at $660,900, an increase of 0.7 % from the preceding month; and West Vancouver at $997,100, an increase of 1.6 % from the preceding month. 

 

I can help

 

I am active in many areas of real estate so please don’t hesitate to ask me if there are other ways in which I can help you.  My experience in banking and finance will assist you in your mortgage planning. Or you if are already settled in your home and are thinking of renovations, I can recommend reputable tradespeople who provide quality work at reasonable rates. It gives me great pleasure to help my clients in any way I can.