METRO VANCOUVER

Robust sales continue despite interest rate hike; prices still rising

Metro Vancouver’s residential market remained robust in July with a 22% increase in sales compared to the previous month. The total sales volume for the month across all housing types, which reached 2,455, was also  29% higher than the same period one year ago. However, last month’s sales were 15.6% below the 10-year seasonal average, which appears still to be recovering from the steep drop seen last year when higher interest rates began to impact prospective home buyers. Yet, it is important for current home shoppers to note that the rising sales volume is still putting upward pressure on prices. This may be due mainly to lower than normal inventory although the present demand levels are unexpectedly persistent in the face of record high mortgage interest rates. The Bank of Canada’s last policy rate announcement of 5.5% has created the highest mortgage borrowing costs in decades, and many prospective buyers remain sidelined for this reason. Even so, prices are not expected to decline under current market demand while replenishing supply continues to lag. New listings across all property types in July totalled 4,649, a 13% decline from the 5,348 new listings in the preceding month. While this July showed a 17% increase over the same month last year, it was still 14.45 below the 10-year seasonal average. This brought the total inventory at the end of July to 10,301, a mere 3% increase over the preceding month, but close to 8% below last year at this time, and 17.4% below the 10-year average. While the rate of price increases did show some slowing last month, it unlikely that waiting for a similar price drop as seen last year will occur. As demand remains high, and inventory remains low, prices will naturally rise. If supply is expected to moderate price rises, and the market is not responding to high demand with more new listings, it appears that government action is urgently required to stimulate more affordable housing construction. At the end of July, the composite benchmark price for residential property in Metro Vancouver was $1,104,600, a 0.5% increase from the preceding month.          

A more detailed look at prices in different areas of Metro Vancouver is provided below. Here you can find a selection of benchmark averages that are clustered around the overall benchmark for each property type. The cluster shows the three closest benchmarks on the both sides of the overall average. The extremities of the average in each geographical area allows you to see how broad the range of prices is. The monthly price fluctuations typically represent the intensity of the market activity for the month. It is important to remember that because benchmarks are averages for comparable homes, there may be particular listings that meet you budget requirements more precisely. Please don’t hesitate to let me know if you would like the most detailed and up to date information available for any area to purchase. And if you are considering listing you home for sale, I can develop for you a Customized Market Analysis showing recent sale prices in your neighbourhood and can advise you on the optimal asking price in the current market conditions. I am always available and eager to help in any way I can. Please feel free to call.      

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of July was $2,012,900, an increase of 1.1% from the preceding month. The extremities of this average were Vancouver West at $3,458,000 and Sunshine Coast at $929,900. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,040,600, an increase of 0.1% from the preceding month; Port Moody at $2,070,7300, an increase of 1.7% from the preceding month; and Richmond at $2,081,700, no change from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,944,700, an increase of 1.7% from the preceding month; Vancouver East at $1,879,200 an increase of  0.9% from the preceding month; and Coquitlam at $1,795,400, an increase of 0.5% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of July was $1,104,600, an increase of 0.5% from the preceding month. The extremities of this average were: Vancouver West at $1,496,000 and Sunshine Coast at $745,500. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,125,300, an increase of 1.6% from the preceding month; Richmond at $1,143,200, an increase of 2.0% from the preceding month; and North Vancouver at $1,359,100, an increase of 1.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,061,900, a decrease of 1.2% from the preceding month; Port Moody at $1,028,900, a decrease of 0.4% from the preceding month; and Tsawwassen at $1,004,800, an increase of 0.5% from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of July was $771,600, an increase of 0.6% the from the preceding month. The extremities of this average were West Vancouver at $1,346,000 and Maple Ridge at $530,100. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $803,700, an increase of 0.6% from the preceding month; North Vancouver at $814,400, a decrease of 0.6% from the preceding month; and Burnaby South at $822,200, an increase of 1.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $747,100, a decrease of 0.9% from the preceding month; Coquitlam at $742,200, an increase of 0.6% from the preceding month; and Richmond at $740,800, an increase of 0.1% 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.