METRO VANCOUVER

Sales down while national average up; supply increases

Metro Vancouver residential sales showed a continuing a month-over-month decline in June with a total of 2,418 homes sold across all property types, an 11.5% drop from May. With the previous month’s more modest dip of 3.5% from April, the market’s sales volume moved to 23.6% below the 10-year average at the end of June. At the same time, Metro Vancouver’s sales decline was in sharp contrast to national home sales. Canadian Real Estate Association figures showed a 3.7% increase in sales volume for the same period. While Metro Vancouver’s housing market remains among the priciest in the country, the upward price trend has been slowing or even reversing recently, as prospective buyers remain on the sidelines during this normally higher summer sales period. One possible explanation is that they expect to see second interest rate cut by the Bank of Canada later this year. Last month the central bank shaved 25 basis points from its policy rate, the first rate cut in four years, lowering the key interest rate to 4.75%. A recent rise in current unemployed figures has also boosted economists’ confidence in another rate to follow as Canada’s inflation rate appears to be under control. Yet, while buyers wait and watch, the Meto Vancouver housing market is quickly replenishing its inventory. New listings in June reached 5,723 for all properties, a 7% increase over the same period last year, bringing the total supply to 14,182 available homes. This represents a 4% increase over May’s closing inventory, a 42% increase over the same month last year, and 20% above the 10-year average. With the plentiful supply now combined with lower demand, there is a flattening of prices occurring at present. Downward pressure on home prices occurs when the ratio of sales-to-active listings drops below 12% for a sustained period. At the end of June, the ratio for detached homes was 13.1%; for townhouses 21.1%; and for condominiums 20.3%. The combined benchmark price for a residential property in Metro Vancouver at the end of June was $1,207,100, a decline of 0.4% from the preceding month.

In the section below, my monthly guide to comparative prices in different areas of Metro Vancouver provides an insight into recent market activity. For each property category, you will find the overall benchmark price along with a cluster of the three closest benchmarks on each side of the average in different geographical areas. The one-month price change provides an idea of the relative demand for homes in the area, and the extremities of each benchmark average gives an idea of the range of prices making up the average. However, it is important to remember that benchmarks are averages. There may be specific prices that are concealed in an average that may offer an excellent purchase opportunity and a good fit for your budget, so if you are interested in a particular neighbourhood, please give me a call. I can provide you with the most up-to-date information on any recent listings. And if you are considering listing your home for sale, I can prepare a Customized Market Analysis for your property and advise you on the optimal listing price in the current market. Please don’t hesitate to call. I love to help my clients.

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of June was $2,061,000, a decrease of 0.1% from the preceding month. The extremities of this average were Vancouver West at $3,560,700 and Sunshine Coast at $932,600. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,173,900, an increase of 0.5% from the preceding month; Port Moody at $2,182,800, an increase of 0,5% from the preceding month; and Richmond at $2,197,800, a decrease of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,842,600, a decrease of 0.7% from the preceding month; Vancouver East at $1,892,600, an increase of 0.7% from the preceding month; and Burnaby East at $1,063,600, a decrease of 2.1% from the preceding month.

 

Townhouses

The benchmark price for a townhouse in Metro Vancouver at the end of June was $1,138,100, a decrease of 0.6% from the preceding month. The extremities of this average were Whistler at $1,748,000 and Sunshine Coast at $780,800. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,147,600, an increase of 1.1% from the preceding month; Richmond at $1,,163,300, a decrease of 0.5% from the preceding month; and North Vancouver at $1,388,900, a decrease of 2.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South at $1,101,400, an increase of 1.1% from the preceding month; Coquitlam at $1,084,200, a decrease of 1.1% from the preceding month; and Port Moody at $1,048,300, an increase of 0.8% from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of June was $773,400, a decrease of 0.4% from the preceding month. The extremities of this average were West Vancouver at $1,350,900 and Maple Ridge at $534,900. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East $802,300 a decrease of 1.2% from the preceding month; North Vancouver at $824,500, an increase of 0.1% from the preceding month; and Burnaby South at $843,200, a decrease of 0.5 % from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $760,100, a decrease of 0.9% from the preceding month; Burnaby North at $759,600, no change from the preceding month; and Coquitlam at $746,400, a decrease of 0.7% 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.