METRO VANCOUVER

Sales inch up while economic uncertainty continues; huge inventory, purchase opportunities.

 

Meto Vancouver’s residential market saw little difference in actual transactions in May, while prospective buyers showed apparent indifference to the rising inventory. Total sales for the month inched slightly higher with a 3% increase over the previous month, for a total of 2,228 homes sold. On an historical comparison, May’s sales volume was down close to 19% from the same period last year, and 31% below the 10-year seasonal average. New listings this past May declined by 3% from the preceding month but still accounted for 6,620 homes added to the existing inventory, pushing up the supply across all property type to its highest level in a decade. At the end of May there were total of 17,094 available properties in Metro Vancouver. Unlike the historical comparison for sales, however, May’s new listings were close to 4% above the same month one year ago, and 9.3% above the 10-year seasonal average. The current abundance of available homes in the Metro Vancouver market makes it clear that it is not a lack of choice that is keeping home buyers on the sidelines. Nor is it that mortgage borrowing costs can be causing buyer hesitancy. While the Bank of Canada, in its most recent policy rate announcement one week ago, maintained its current rate at 2.75% in face of consumer price inflation still of concern in some areas, financing home purchases has eased considerably over the past year. Fixed rates, with either 3-year and 5-year fixed options, are currently around 4.44% to 4.64%; variable rates are slightly higher with a 5-year variable option now typically in the range of 4.79%. However, the central bank noted  the ups and downs of recent tariff announcements by the USA has created extreme uncertainty in international trade negotiations along with a spill-over effect in the Canadian economy in general. This uncertainty remains high as persistent threats of more trade sanctions and risks of declining Canadian exports, and with such economic uncertainty, buyer hesitancy is understandable. Nonetheless, in the current climate of low demand, increase in home prices are only modest where they occur, whle price declines can now be found that can amount to significant savings for buyers. At the end of May, the composite benchmark price for a residential property in Metro Vancouver was $1,177,100, a 0.6 % decline from the preceding month.   

 

Please take a look at my monthly comparison of benchmark prices across Metro Vancouver in the section below. For each property type, you will find the overall benchmark  price with a cluster of the closest benchmark price on each side of the average for different areas in Metro Vancouver. Use these comparisons as guide to where you may find a property that meets your home shopping budget. The range of prices making up each benchmark average can also assist in understanding the composition of the average price. Remember that that there may be wide number of actual prices making up the average, and so concealing an attractive price for suited to your budget. Please give me a call if you are interested in looking at a home in a specific neighbourhood. I can provide you with the most up-to-date information on listings. And if you are thinking about selling your home, I can assist you setting the most optimal asking price for your property.

 

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of May was $1,997,400, a decrease of 1.2% from the preceding month. The extremities of this average were Vancouver West at $3,363,100 and Sunshine Coast at $878,000. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $2,075,700, an increase of 0.6% from the preceding month; Burnaby North at $2,094,100, a decrease of 3.5% from the preceding month; and Richmond at $2,171,000, a decrease of 2.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,867,200, a decrease of 5.2% from the preceding month; Vancouver East at $1,828,600, a decrease of 1.3% from the preceding month; and Coquitlam at $1,778,300, a decrease of 0.7% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of May was $1,106.800, an increase of 0.4% from the preceding month. The extremities of this average were Vancouver West at $1,419,000 and Sunshine Coast at $763,400. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,120,900, an increase of 2.0% from the preceding month; Richmond at 1,123,700, an increase of 1.2% from the preceding month; and North Vancouver at $1,351,400, 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 $1,085,000, an increase of 0.4% from the preceding month; Burnaby South at $1,071,000, an increase of 0.4% from the preceding month; and Port Moody at $1,040,400, a decrease of 0.3% from the preceding month.

 

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of May was $757,300, a decrease of 0.7% from the preceding month. The extremities of this average were: West Vancouver at $1,289,800 and Maple Ridge at $525,000. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East $791,500, an increase of 0.3 from the preceding month; Burnaby South at $812,200, a decrease of 2.9% from the preceding month; and North Vancouver at $815,900, an increase of 0.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $746,900, an increase of 1.6% from the preceding month; Burnaby North at $736,200, a decrease 1.0% from preceding month; and Coquitlam at $724,000, a decrease of 0.7% from the preceding month.

 

Let me help

 

There are many ways I can help you with your real estate transactions. Please let me know how I can help in these challenging times. You may need help in managing your home ownership plans, or in adjusting your financial strategy for a home purchase. Perhaps you are thinking of listing your home for sale and want to understand the market to set your asking price. Let me help. I have a 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.