METRO VANCOUVER

Metro Vancouver home sales pace slowing; but prices still rising

Home sales in Metro Vancouver last month dipped from the record set for March 2021, but they remained high for the current season. A total of 4,344 residential properties sold across all property types during March this year, an increase of 26.9% over the sales volume for the preceding February. However, on the year-over-year comparison, March sales decreased close to 24%, an indicator of the market’s gradually slowing pace, partly dues perhaps the financial constraints on some buyers as interest rates rise and mortgage stress tests present more of a challenge.  Of the three property types, March sales of single family detached homes were highest with 1,291, a 34% decrease from one year earlier. Townhouses sales reached 743, a decrease of 29.0% from the one year earlier; and condominiums sales were 2,310, a 14.3% decrease from one year ago. The Bank of Canada earlier announced plans to make incremental increase to its key policy rate for at least through the remainder of this year. Another rate increase is scheduled to be announced today (Wednesday April 13). Commercial banks have already responded with rate increases for variable rate mortgages, and holders of fixed rate mortgages can also expect to pay more when they renew. Demand for Metro Vancouver housing nonetheless remains high, and new listings in March increased by 22% over new listings in the preceding month. The 6,673 new March listings brought the total inventory across all property types for Metro Vancouver to 7,628 at the end of the month, a 13.1% increase from the preceding February. This provides a good selection for home buyers at present, but it is not sufficient increase to significantly reduce the upward price pressure on home prices. Metro Vancouver requires approximately double the current supply to balance the market. Home buyers should therefore not expect a sudden price drop during this period and delaying a purchase will likely lead to paying more as interest rates rise.

The composite benchmark price for a Metro Vancouver residential property at the end of March was $1,360,500, a 3.6% increase from the preceding month. This is also a 20.7% increase from one year earlier. Below, you will find my monthly selection of property types with comparative benchmark prices for each of their geographical areas. The individual property type benchmarks are clustered around the combined benchmark for the area so you can see the prices closest on each side of the average, along with the price change from the preceding month. Remember, however, that benchmarks are simply averages so it is important to note the extremities in the prices making up the average. This will give you the range of prices that can guide you in your search for a home that meets your purchasing budget. And anyone who is considering listing their property for sale, it will give you an idea of the market activity in your area.  But I urge you to contact me so I can help you set an optimal price for you home in this active market. I can also produce a customize Comparative Market Analysis to illustrate your home’s value compared to similar recently sold properties in your neighbourhood. Please don’t hesitate to call me. I am truly happy when I help someone reach their goals.

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of March was $2,118,600, a 3.6% increase from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,571,000 and Sunshine Coast at $995,600. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $2,181,700, an increase of 2.5% from the preceding month; North Vancouver at $2,226,500, an increase of 2.8% from the preceding month; and Port Moody at $2,273,700, an increase of 8.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South $2,067,100, an increase of 4.2% from the preceding month; Burnaby North at $2,021,400, an increase of 4.9% from the preceding month; and Vancouver East at $1,932,600, an increase of 3.9% from the preceding month.

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of March was $1,138,300, an increase of 4.4% from the preceding month. The extremities of this average were Whistler at $1,571,600 and Sunshine Coast at $741,700. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,176,300 an increase of 6.8% from the preceding month; North Vancouver at $1,373,500, an increase of 6.3% from the preceding month; and Vancouver West (not West Vancouver) at $1,383,700, an increase of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $1,100,600, an increase of 2.8% from the preceding month; Coquitlam at $1,054,200, an increase of 5.2% from the preceding month; and Tsawwassen at $1,014,100, an increase of 2.1% from the preceding month

Condominiums

 

The benchmark price for a condominium in Metro Vancouver at the end of March was $835,500, an increase of 3.4% the from the preceding month. The extremities of this average were West Vancouver at $1,189,100 and Maple Ridge at 541,900. The three municipalities on the higher side of the average were: Vancouver West at $853,400, an increase of 1.2% from the preceding month, and West Vancouver at $1,151,200, an increase of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $828,600, an increase of 5.6% from the preceding month. Richmond at $828,100, an increase of 3.5% from the preceding month; and Burnaby North at $818,200, an increase of 2.4% from the preceding month.

 

I can help

 

These are challenging times for many homebuyers and homeowners. With the Bank of Canada interest rate now rising, you may need to adjust your financial strategy for your home purchase.  Variable rate mortgages will rise with each incremental increase in the central bank’s key rate, and fixed rate mortgages will likely have higher rate when they are renewed. If you need help in managing your home ownership plans, I can help. I have formal education at the post-graduate level in business along with years of experience in both banking and real estate, and 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.