METRO VANCOUVER

Month-over-month sales decline; sellers’ market remains with high demand  

The pace of Metro Vancouver’s residential market activity slowed again in May, the second consecutive month-over-month dip following a 10-month surge reaching record high sales for the region. Still, May’s 13% decrease in sales volume from the preceding month registered more than 187% higher than one year ago and was nearly 28% above the 10-year average. Spring and summer are normally higher sales periods, but it remains to be seen if the federal government’s stricter mortgage qualification rules, which came into effect June 1, will have a further dampening effect on the market. While demand appears to be declining somewhat from its previous intensity, Metro Vancouver remains a seller’s market with demand continuing to exert upward pressure on prices. On the supply side, new listings in May reached 7,125 across all property types, a 93.4% increase in new listings for the same period one year ago, but nonetheless a 10.2% decrease in new listings in April 2021. Notably, this was the second month-over-month decline in new listings since a spike that was spurred at the top of demand cycle in March. The total Metro Vancouver inventory at the end of May was close to the seasonal supply, 10.5% above May 2020 and 7.1% higher than April this year. However, new listings will have to increase across all housing types to moderate price rises in the current market conditions. The relatively small recent dips in demand may be slowing the rate of prices rises, but overall prices are still going up.

 

The composite benchmark price for all residential properties in Metro Vancouver at the end May was $1,172,800, a 1.5% increase from April, and a 14% increase for the same period one year ago. Over the previous 12-month period, highest in sales volume last month were condominiums, with a total of 2.049 sales, an increase of 213% over the same period one year earlier. Second in sale volume were detached homes, with a total of 1,430 sales, an increase of 166% over the previous year; and third were townhouses with 800 sales, an increase of 168% over May one year ago. Below is my monthly selection of benchmark prices for each property type in municipalities ranked according to their clustering around their overall benchmark price in Metro Vancouver. You will see that prices have increased over the last month typically from less than 1.0% to as high as 2.6%. One notable decrease is for townhouses in Vancouver East, down 0.9% from the preceding month. The monthly rate fluctuations are snapshot of market sales for one month and do not indicate a trend by themselves. However, the monthly comparison can be helpful for anyone actively looking to buy or thinking of listing soon. This selection is intended only a general guide, allowing buyers to see current prices and the most recent price changes for properties that are within their budget and desired neighborhood. Prospective sellers may also get a general idea for listing price in their area. However, remember that benchmarks are only average prices; there are often excellent bargains to be had on a specific property. I would encourage you to call me for a more detailed information if you have a price and area in mind. If you considering listing your property for sale, I will be happy to prepare a customized Comparative Market Analysis showing recent sales prices for comparable properties in your neighborhood. I will also be able to advise you on the optimal listing price in this dynamic market. Please feel free to call me with any questions you may have.

 

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of May was $1,800,600, an increase of 1.7% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,383,100 and Sunshine Coast at $838,300. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $1,820,500, an increase of 0.4% from the preceding month; North Vancouver at $1,902,600, an increase of 1.2% from the preceding month; and Richmond at $1,931,300, an increase of 2.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South $1,765,100, an increase of 2.1% from the preceding month; Burnaby North at $1,712,100, an increase of 0.2% from the preceding month; and Vancouver East at $1,709.700, an increase of 1.7% from the preceding month. 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of May was $936,300, an increase of 1.8% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,274,700 and Maple Ridge at $678,300.  The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $992,700, a decrease of 0.9% from the preceding month; North Vancouver at $1,104,900, an increase of 1.6% from the preceding month; and Vancouver West (not West Vancouver) at $1,274,700, an increase of 2.6% from the preceding month (Whistler was excluded here as it is too far out for my clients.) The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $911,600, an increase of 1.5% from the preceding month; Tsawwassen at $843,900, an increase of 0.4% from the preceding month; and Coquitlam at $833,900, an increase of 1.4% 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 May was $737,100, an increase of 1.2% the from the preceding month. The extremities of this average were West Vancouver at $1,131,000 and Port Coquitlam at $527,200. The two municipalities closest to the benchmark on the higher side of the average were: Vancouver West at $836,100, an increase of 0.8% from the preceding month; and West Vancouver at $1,131,000, an increase of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $714,800, an increase of 0.8% from the preceding month; Port Moody at $714,600, an increase of 0.9% from the preceding month; and Burnaby North at $714,500, an increase of 1.7% from the preceding month. 

 

Let me help

I am here to help you, whatever your housing requirements, I bring experience in banking and finance to assist you in your mortgage planning. If you are thinking about listing your home for sale, I can also advise you on the optimal price for the current market conditions. And in case you are thinking about home renovations that will increase your home value, I can recommend reputable tradespeople who do excellent work at fair rates. Please don’t hesitate to call me. It gives me great pleasure to help my clients.