Summer sales still hot but cooling; some price decreases

For a third consecutive month, Metro Vancouver’s residential market cooled slightly in June from its previous blistering pace. But while the dip appears to be trending on a month-over-month comparison, sellers’ market conditions continue with low interest rates still driving strong demand across all property types. The overall decline in June’s home sales was 11.9% from the preceding month, but on an historical basis, total home sales this past June were 54% higher than the same period one year ago, and 18% over the 10-year average. Condominiums led in June with a total of 1,744 sales, a 60.5% increase over the same month one year ago. Detached home followed with a June total of 1,262 sales, a 45.7% from one year earlier; and townhouse sales reached a total of 776 for the month, 53.8% over one year ago. Overall new listings last month also declined, down 17.9% from May, but close to last year with a 1.1% increase over May 2020. June’s new listings of 5,849 across all property types this year brought the total inventory at the end of the month to 10,839, a drop of 5.1% from one year ago, and a 1.2% decrease from the preceding month of May. The current combination of lower supply and continuing high demand is generally exerting upward pressure on prices: the composite benchmark price for a residential property in Metro Vancouver at the end of June was $1,175,100, an increase of 0.2% from May, and a 14.5% increase from one year ago. However, I highly recommend looking closely at current monthly fluctuations in home prices in different geographical areas across Metro Vancouver. Price declines in some areas can still be found in this dynamic market.

Below are benchmark prices in each property type for the most recent month-over-month price changes. This selection of benchmark prices is based on homes clustered around the average price in different areas of Metro Vancouver. Using this a guide for your budget and desired living area, you will be able to see what the extremes of the averages are, and to get a general idea of comparable prices in the area of your choice. Monthly price fluctuations result from a number of factors, primarily the price set by sellers which is usually based on comparable homes in the area, and the active bidding by buyers based on their level of desire to make a purchase. As mentioned, a sellers market currently exists, which means demand is often high enough to cause buyer to bid above the seller’s listed price. In such conditions, prices normally move upwards; however, there are always exceptions in individual cases. This past June, for example, benchmark prices for single family homes in Metro Vancouver showed 0.0% change from the preceding month, meaning that among the prices increases there were also price decreases, some particularly notable: Burnaby East showed a monthly benchmark decrease of 2.0%, and Richmond had a benchmark decrease of 1.1%. Please examine the selection I have provided below and if you would like a more detailed information on your desired area and property type, I will be more than happy to advise you with the most up-to-date information.      

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of June was $1,801,100, an increase of 0.2% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,458,300 and Sunshine Coast at $834,100. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $1,850,300, an increase of 1.6% from the preceding month; Richmond at $1,910,500, a decrease of 1.1% from the preceding month; and North Vancouver at $1,914,100, an increase of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South $1,758,200, a decrease of 0.6% from the preceding month; Burnaby North at $1,727,100, an increase of 0.9% from the preceding month; and Vancouver East at $1,696,500, a decrease of 0.8% from the preceding month. 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of June was $946,900, an increase of 1.1% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,288,800 and Pitt Meadows at $747,900. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1.013,100, an increase of 2.1% from the preceding month; North Vancouver at $1,116,200, an increase of 1.0% from the preceding month; and Vancouver West (not West Vancouver) at $1,288,800, an increase of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $923,500, an increase of 1.3% from the preceding month; Tsawwassen at $855,500, an increase of 1.4% from the preceding month; and New Westminster at $843,600, an increase of 1.0% from the preceding month. (Squamish was excluded here as it is too far out for my clients.)

Condominiums

 

The benchmark price for a condominium in Metro Vancouver at the end of June was $737,600, an increase of 0.1% the from the preceding month. The extremities of this average were West Vancouver at $1,135,400 and Maple Ridge at $428,200. The two municipalities closest to the benchmark on the higher side of the average were: Vancouver West at $836,900, an increase of 0.1% from the preceding month; and West Vancouver at $1,135,400, an increase of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $724,800, an increase of 1.8% from the preceding month; Burnaby North at $719,100, an increase of 0.6% from the preceding month; and Richmond at $718,300, an increase of 0.5% from the preceding month. 

 

Let me help

 

Please let me know how I can assist you. If you are interested in buying, I can provide you with more detailed market information on your desired region and property type. I am also well experienced in finance and can assist you with your mortgage planning.  In the event that you are thinking about listing, I can advise you on the optimal price range for your property with comparisons to other recent and historical sales in your neighbourhood. And for anyone contemplating renovations, I have an excellent list of reliable, quality tradespeople at affordable rates.