METRO VANCOUVER

Summer sees many home shoppers; new listings needed

Metro Vancouver’s residential market continued with strong sales last month, though dipping slightly from the previous month, while home prices continued the upward trend seen since the beginning of this year. Although summer typically brings out home shoppers adding to the present demand, the current rise in prices is largely a function of a limited supply as new listings continue to lag. Inventory at the end of June was close to 9% below the 10-year seasonal average. Total sales across all property types in June reached 2,988, a 12% decrease from May but up 21.1% over the same period one year ago. June’s new listings across all property types totalled 5,348, down 5.5% from the preceding month, and 3.1% below the 10-year seasonal average. The inventory of available homes at the end of June was 9,990, a 7.0% increase over the preceding month, but nearly 8.0% below the same one last year, and 17.4% under the 10-year seasonal average. Overall prices in the current strong demand period have continued to rise despite increasing mortgage rates with the Bank of Canada’s inflation fighting measures. The central bank’s latest increase of another 25 basis points last week, brought the benchmark policy rate to 5.0%, the highest level it has seen since 2001. Commercial banks were quick to raise their variable mortgage rates to around 7.0% following the central bank rate. Yet, real estate markets are not cooling as quickly as other sectors in the national economy. The Consumer Price Index inflation rate dropped to 3.4% in May, down from 8.1% one year ago. The composite benchmark price for all property types in Metro Vancouver at the end of June was $1,203,000, an increase of 1.3% over the preceding month, while still down 2.4% from one year ago. While prices increases are occurring across all property types, a notable increase has been in the condominium segment, where after declines seen over the past year, prices have returned to 0.5% above the average one year ago.

In the section below, you will find benchmark prices for each property type as a guide to selected areas around Metro Vancouver. Each area is chosen based on the closest average prices above and below the monthly benchmark for the type of home, detached, townhouse, and condominium. The month-over-month price change shown is typically a reflection of the current level of market activity. Keep in mind, that benchmarks are averages, so note the extremities provided for each average. This will provide some insight into the range of particular prices that may fit your budget more closely. For the most up-to-date information on any neighbourhood, please don’t hesitate to call me. I can provide home shoppers with detailed information on the latest listings. And if you are considering selling your home, I can prepare a Customized Market Analysis showing how you property compares with other recently sold homes, and advise you on the optimal listing price in the current market. I am always happy to help my clients in any way I can. Please let me know what I can do for you.       

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of June was $1,991,300, an increase of 1.9% from the preceding month. The extremities of this average were Vancouver West at $3,418,700 and Sunshine Coast at $899,900. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $2,035,300, an increase of 1.4% from the preceding month; Burnaby North at $2,039,400, an increase of 2.9% from the preceding month; and Richmond at $2,182,000, a decrease 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 $1,912,200, an increase of 4.8% from the preceding month; Vancouver East at $1,879,700 an increase of  3.1% from the preceding month; and Coquitlam at $1,787,000, an increase of 1.8% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of June was $1,098,900, an increase of 1.5% from the preceding month. The extremities of this average were  Whistler at $1,513,400 and Sunshine Coast at $757,000. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,108,900, no change from the preceding month; Richmond at $1,121,500, an increase of 0.1% from the preceding month; and North Vancouver at $1,336,600, an increase of 2.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,074,600, an increase of 1.5% from the preceding month; Port Moody at $1,033,100, a decrease of 0.8% from the preceding month; and Tsawwassen at $999,600, a decrease of 0.6 % from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of June was $767,000, an increase of 0.8% the from the preceding month. The extremities of this average were West Vancouver at $1,339,700 and Maple Ridge at $532,600. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $798,600, an increase of 1.2% from the preceding month; Burnaby South at $812,100, an increase of 0.8% from the preceding month; and North Vancouver at $819,100, an increase of 2.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $753,800, an increase of 0.1% from the preceding month; Richmond at $739,800, a decrease of 1.0% from the preceding month; and Coquitlam at $737,500, an increase of 1.9% 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.