METRO VANCOUVER

Robust sales despite high interest rates; new listings continue to rise

Metro Vancouver residential sales rose to 2,415 in March, a 17% increase over February, although still lagging historical activity. This year’s March total was down 4.7% from the same month last year and 31.2% below the 10-year average. However, while the seasonal gap in sales volume is  decreasing despite interest rates remaining high, new listings again showed another month-over-month increase. March saw a total of 5,002 new listings across all property types, continuing the upward trend in recent months. March figures were 10% above February, while February posted a 20% increase over January’s new listings. The resulting inventory at the end of March was a total of 10,552 available homes, 22.5% above the same month one year ago, and 6.3% higher than the 10-year average. The increase in supply is welcome news for buyers, not only for the greater selection in all property types, but as a moderating influence on rising prices. While buyers generally were disappointed with last week’s Bank of Canada announcement keeping the central bank’s policy rate at 5.0%, demand still remains strong for Metro Vancouver homes and prices continue to move upwards. The most recent supply-demand figures show prices are moving into seller’s market territory with an overall sales-to-active listings ratio close to 24% at the end of March. If the current sales trend continues, townhouses, now above a 31% ratio, and condominiums close to a 26% ratio, will see the greatest upward price pressure. Without a surge of new listings to bring the ratio under a sellers’ market sales-to listings threshold of 20%, an upward acceleration can be expected in prices. Detached properties, currently at a ratio of 18.2% are still resistant to upward price pressure, but one-moth increases in March show increases in popular areas as high as 4.5% The composite benchmark price for a residential property in Metro Vancouver at the end of March was $1,196,800, a 1.1% increase from the preceding month.

Please look at my monthly selection below of comparative benchmark prices for homes in different areas of Metro Vancouver. Benchmarks are average prices for comparable properties in different geographical areas. The month-over-month price change at the end of March showed almost all areas had increasing prices in each property category. However, while the trend is upwards, the monthly fluctuations typically reflect the amount of sales activity in a specific area, so it always a good idea to watch prices changes closely. For each property type benchmark you will find the overall benchmark along with cluster of the  closest prices to the benchmark on the upper and lower sides of the average. The extremities of each average also show the price range making up the average, With the range in mind, it is important to remember the average may conceal actual prices that at more suited to you budget. If you are interested in exploring the actual listings in a specific areas, please don’t hesitate to call me. I can provide you with the most-up-to-date information for your home search. And if you are thinking of listing you home for sale, I can prepare a Customized Market Analysis for you property and advise you on the optimal asking price in the current market conditions.        

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of March was $2,007,800, an increase of 1.8% from the preceding month. The extremities of this average were Vancouver West at $3,452,200 and Sunshine Coast at $878,000. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $2,060,800, an increase 9of 1.0% from the preceding month; Burnaby North at $2,112,000, an increase of 2.6% from the preceding month; and at $2,190,500, an increase of 2.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,964,700, an increase of 4.5% from the preceding month; Vancouver East at $1,852,200, an increase of  1.1% from the preceding month; and Coquitlam at $1,810,600, an increase of 0.5% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of March was $1,112,800, an increase of 1.7% from the preceding month. The extremities of this average were Vancouver West at $1,148,700 and Sunshine Coast at $748,200. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,146,600, an increase of 2.3% from the preceding month; Vancouver East at $1,148,700, an increase of 3.7% from the preceding month; and North Vancouver at $1,374,200, an increase of 2.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,062,600, an increase of 0.1% from the preceding month; Tsawwassen at $1,036,700, an increase of 8.6% from the preceding month; and Ladner at $1,033,800, an increase of 8.9% from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of March was $777,500, an increase of 0.9% from the preceding month. The extremities of this average were West Vancouver at $1,328,900 and Maple Ridge at $546,000. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $804,200, an increase of 3.1% from the preceding month; Burnaby South at $812,000, an increase of 0.2% from the preceding month; and North Vancouver at $830,200, an increase of 2.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $772,400, an increase of 0.3% from the preceding month; Burnaby North at $753,300, an increase of 0.6% from the preceding month; and Coquitlam at $748,500, an increase of 2.6% 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.