Home sales still cooling, but remain above average; some prices decrease   

Residential market activity In Metro Vancouver continued to slow as July recorded the fourth consecutive month of moving off the frenetic pace seen over the preceding year. Yet, July home sales were over 6.0% higher than in the same month last year, and the market’s current vibrancy is historically evident with sales at 13.3% above the 10-year average. Looking at the current month-over-month comparison, however, July’s 3,128 sales were a decline of 11.6% from the preceding June. New listings also dropped in July with the month’s total of 4,377 across all property types down by 25% from new listings recorded in June this year, and 26% lower than new listings in June in 2020. On the 10-year average, July’s new listings were down by 12.3%. The total inventory at the end of July was 9,850 across all property types, 9.1% lower than the preceding month of June and a decrease of 18.5% from one year ago. The overall decline in market activity is providing a reprieve for buyers, many of whom saw rapid price rises over previous months as competitive bidding for home purchases often pushed prices above the asking price. With the current moderation in sales, there is a somewhat more relaxed purchasing environment at present, and prices are generally settling down. Notably, the composite benchmark price for a residential property in Metro Vancouver at the end of July ($1,175,500) showed no change from the preceding month. This will be welcome news by prospective buyers who have watched this benchmark increase by nearly 14% from one year ago, but with a declining inventory upward pressure on prices can be expected. However, I recommend that prospective buyers keep in mind that the composite benchmark price is an average with variance that can be quite broad, In the Metro Vancouver market, there are some exceptionally high property prices so it is important to look carefully for individual price listings. There can often be excellent listing prices that fit you budget.

In the selection of benchmark prices for specific property types below, I have compared the month-over-month price change in different areas of Metro Vancouver. Each property type includes a cluster of average prices around the overall benchmark for the property type. This can serve as guide to general price levels in different geographical areas, and also give you an idea of recent price fluctuations. Remember that a benchmark price is based on homes with similar features in comparable neighbourhoods. This month, I want to point out that with the composite benchmark for all properties showing no change since June that there are some areas where decreases in prices can be found. For example, the benchmark price in July for a detached family home in North Vancouver decreased by nearly 1.0 per cent; the benchmark for townhouses decreased by over 2.0 per cent in Tsawwassen; and for condominiums in Port Moody a decrease of 0.5%.  Please feel free to ask me for more detailed information on prices and property features in a neighbourhood of your choice. I am happy to help you in your search for home that meets your personal preferences and budget. And if you are thinking of listing, I can advise you on an optimal asking price and prepare a detailed market comparison for your property.      

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of July was $1,801,100, no change from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,466,200 and Sunshine Coast at $833,800. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $1,863,800, an increase of 0.7% from the preceding month; North Vancouver at $1,896,300, a decrease of 0.9% from the preceding month; and Richmond at $1,910,000, no change from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South $1,774,500, an increase of 1.1% from the preceding month; Burnaby North at $1,746,800, an increase of 1.1% from the preceding month; and Vancouver East at $1,692,500, a decrease of 0.2% from the preceding month. 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of July was $949,400, an increase of 0.3% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,291,800 and Sunshine Coast at $611,600. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $949,900, a decrease of 1.8% from the preceding month; North Vancouver at $1,125,500, an increase of 0.8% from the preceding month; and Vancouver West (not West Vancouver) at $1,291,800, an increase of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $932,600, an increase of 1.0% from the preceding month; Coquitlam at $847,300, an increase of 0.5% from the preceding month; and Tsawwassen at $837,200, a decrease of 2.1% from the preceding month. (Squamish was 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 July was $736,900, a decrease of 0.1% the from the preceding month. The extremities of this average were West Vancouver at $1,142,300 and Sunshine Coast at $521,500. The two municipalities closest to the benchmark on the higher side of the average were: Vancouver West at $829,300, a decrease of 0.2% from the preceding month; and West Vancouver at $1,142,300, an increase of 0.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $728,600, an increase of 0.5% from the preceding month; Richmond at $714,800, an increase of 0.5% from the preceding month; and Port Moody at $712,200, a decrease of 0.5% from the preceding month. 

 

Let me help

In addition to my real estate activity, I also bring extensive experience in banking and finance. I will be happy to share my expertise with you to help in your mortgage planning, or to determine the optimal pricing for your property. And for those who are thinking of adding value to their home with renovations, I can recommend reliable tradespeople who provide quality work at reasonable rates.  Please don’t hesitate to ask. It gives me great pleasure to help my clients.