METRO VANCOUVER

Metro Vancouver home sales jump, new listings lag; central bank rate increases

Residential sales in Metro Vancouver last month jumped over 24% higher than the preceding month of April, as home buyers return to the market despite current mortgage rates rising to a record high. The 3,411 home sales in May continues a rising trend since the beginning of the year, and with it home prices are also moving upward. Last month’s sales are also close to 16% over what the were for the same month one year ago, and a mere 1.4% below the 10-year seasonal average. It appears that as the market heats up even, the Bank of Canada’s is attempting to tamp down price inflation with higher mortgage rates. Last week’s announcement by the central bank of another rate hike of 0.25% has raised its benchmark interest rate to 4.75%. The last time the policy rate was this high was in 2001. It comes at a time when Canada’s consumer price inflation has fallen to 4.4% from 8.1% last June, but it appears the bank is taking an extra precaution to ensure it reaches its 2.0% inflation target by next year. The additional pain for mortgage borrowers is therefore hoped to be short term. In the meantime, as many prospective home buyers are watching prices rise, new lists are still lagging. New listings in May reached 5,661, across all property types. This was 11.5% down from new listings for the same period one year ago, and is 4.3% below the 10-year seasonal average. While a total inventory of 9,293 homes available at the end of May presented a reasonably good selection for buyers, it was nonetheless a 10.5% decrease from May 2022, and 20.6% below the 10 year average for the season. The decline in new listings is putting upward pressure on prices, particularly as the summer is a popular home shopping period. Home prices have risen for six consecutive months. At the end of May, the composite benchmark price for a residential property in Metro Vancouver was $1,188,000.

In the selection of homes shown below, you can find a comparison of benchmark prices for each property type across different areas of Metro Vancouver. This can serve a general guide for both home buyers and sellers as it shows the month-over-month average price changes for each area. On the whole, prices are increasing although townhouses showed some decreases last month in Vancouver East and North Vancouver. It is important to remember, however, that benchmarks are averages. By noting the price extremities in each average, you can gain an insight into the range of individual prices making up each benchmark. Please call me if you would like more detailed on the actual listed prices in any neighborhood. And if you are considering putting your home on the market, I can advise you on the optimal listing price at this time. I am happy to help in any way I can. Please don’t hesitate to call.     

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of May was $1,953,600, an increase of 1.8% from the preceding month. The extremities of this average were Vancouver West at $3,338,800 and Sunshine Coast at $862,000. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $1,981,800, an increase of 1.7% from the preceding month; Port Moody at $2,007,600, an increase of 0.5% from the preceding month; and Burnaby South at $2,177,100, an increase of 1.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,824,300, an increase of 1.7% from the preceding month; Vancouver East at $1,822,700, an increase of  2.5% from the preceding month; and Coquitlam at $1,755,500, an increase of 1.6% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of May was $1,083,000, an increase of 0.2% from the preceding month. The extremities of this average were Vancouver West at $1,457,500 and Sunshine Coast at $726,200. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,109,100, a decrease of 3.0% from the preceding month; Richmond at $1,119,900, an increase of 1.2% from the preceding month; and North Vancouver at $1,302,200, a decrease of 0.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,058,700, an increase of 1.0% from the preceding month; Port Moody at $1,042,100, an increase of 1.3% from the preceding month; and Tsawwassen at $1,005,700, an increase of 0.2 % from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of May was $760,800, an increase of 1.1% the from the preceding month. The extremities of this average were West Vancouver at $1,300,300 and Maple Ridge at $532,200. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $789,000, an increase of 0.1% from the preceding month; North Vancouver at $802,700, an increase of 0.2% from the preceding month; and Burnaby South at $805,800, an increase of 1.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $753,200, an increase of 1.5% from the preceding month; Richmond at $747,000, an increase of 0.8% from the preceding month; and Coquitlam at $723,800, an increase of 1.0% 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.