METRO VANCOUVER
Home sales continue to slow; prices decline
Residential market activity in Metro Vancouver is continuing to slow under the Bank of Canada’s inflation fighting measures. At the end of July, the region’s home sales for the month reached a total of 1,887, a 22.8% decline from the previous month. It was also 43.3% lower than the same period one year ago, and 35.2% below the 10-year average. Last month the Bank of Canada’s policy interest rate was hiked by 100 basis points, the largest rate increase in over two decades, bringing the key interest rate to 2.5%. With Canada’s consumer inflation rate still above 8%, the BoC’s rate is cooling the country’s housing market as higher mortgage rates have also ensued. The next Bank of Canada rate announcement is scheduled for September 7 and the Bank’s inflation outlook will be published in October. At the present time, Metro Vancouver’s rebalanced pace of activity provides home buyers an opportunity to transact sales in a more relaxed environment and the supply of homes for sale is gradually being restored. July saw 3,960 new listings across all property types, bringing the total inventory at the end of last month to 10,288. While new listings last month were 9.5 % lower than the same period one year ago, and 24.7% down from the preceding month, the rebalanced market following the Covid period provides a plentiful selection for home buyers at this time. Price declines also make this an attractive time for buyers with sufficient down payments for mortgage qualification.
The composite benchmark price for a Metro Vancouver residential property at the end of July was $1,207,400, a decline of 2.3% from the preceding month. This is the third consecutive month of a composite benchmark price decline in Metro Vancouver, and the biggest month-over-month decrease since the Bank of Canada’s rate increases began last March. The composite benchmark represents the combined average price for all property types in the market. Below, you will find benchmark prices for each property type in a selection of areas across Metro Vancouver. The selection of these municipalities is based on the three benchmarks on each side of the average price for each property types. Each benchmark price shows the month-over-month price change which is usually indicative of the sales activity for comparable homes in the area. These comparisons are intended only as guide for both home shoppers and prospective sellers. It is important to remember that benchmarks are averages so one should also look at the extremities of the averages also noted below, in order to get an idea of the range of prices for properties in the area. I am able to provide clients with more detailed information on any listed property. if you are contemplating selling you home, I can also provide assistance in determining your optimal listing price in the current market, and produce a Customized Market Analysis for your home. I am happy to help in any way with whatever your real estate transaction may be. Please don’t hesitate to call me.
Detached homes
The benchmark price for a single-family detached home in Metro Vancouver at the end of July was $2,000,600, a decrease of 2.8% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,381,800 and Sunshine Coast at $997,000. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,076,700, a decrease of 2.4% from the preceding month; Burnaby South at $2,108,600 a decrease of 7.2% from the preceding month; and Richmond at $2,129,600, a decrease of 1.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam $1,853,500, a decrease of 1.1% from the preceding month; Vancouver East at $1,823,500, a decrease of 4.2% from the preceding month; and Burnaby East at $1,805,400, a decrease of 4.4% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of July was $1,096,500, a decrease of 1.7% from the preceding month. The extremities of this average were Whistler at $1,536,400 and Sunshine Coast at $773,700. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $1,122,000, an increase of 0.5% from the preceding month; Vancouver East at $1,149,800, an increase of 1.7% from the preceding month; and North Vancouver at $1,336,400 a decrease of 0.8% from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,080,700, a decrease of 0.5% from the preceding month; Richmond at $1,079,900, a decrease of 2.6% from the preceding month; and Burnaby South at $990,500, a decrease of 4.9% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of July was $755,000, a decrease of 1.5% the from the preceding month. The extremities of this average were West Vancouver at $1,243,300 and Maple Ridge at $558,300. The three municipalities on the higher side of the average were: Burnaby South at $778,600, a decrease of 2.0% from the preceding month; North Vancouver at $803,300, a decrease of 2.6% from the preceding month; and Burnaby East at $814,700, a decrease of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $734,800, a decrease of 0.8% from the preceding month; Tsawwassen at $731,900, a decrease of 4.1% from the preceding month; and Port Moody at $726,300, a decrease of 2.8% from the preceding month.
I can help
These are challenging times for many homebuyers and homeowners. With Bank of Canada interest rates now rising, 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.