METRO VANCOUVER

Home sales slow, healthy inventory; potential price surge

The residential market in Metro Vancouver saw a significant overall slow-down last month. While the season of lower temperatures is typically accompanied by a cyclical decline in home sales activity, November’s figures suggest the market’s substantial cooling is also a response to rising interest rates driven by the Bank of Canada’s inflation-fighting efforts. Home sales across all property types for the month totalled 1,614, a drop of close to 53.0% from the same period one year ago, and over 15.0% down from October this year. Notably, the November sales volume was almost 40.0% below the 10-year average for the month. New listings were also down for the month, a 22.9% decrease compared with the same period one year ago and a 24.2% decrease from the previous month. However, the 3,055 newly listed homes in November brought the total available inventory at the end of the month to 9,179, which is nearly 30.0% higher than one year ago, while down 6.8% from October this year. While the available stock is still ample to provide a good selection for prospective buyers at this time, the current lower demand has continued to be a factor in price declines, although new listings alone are unlikely to keep prices from rising. New housing development is critical in all areas of Canada and particularly so in Metro Vancouver. The Government of Canada recently announced it’s new immigration targets with a plan for 465,000 new permanent residents in 2023, 485,000 in 2024 and 500,000 in 2025. A rising demand for housing will exert more upward pressure on prices, so prospective buyers may find current price drops attractive at present. The composite benchmark price for a residential property in Metro Vancouver at the end of November was $1,131,600, a decrease of 1.5% from the preceding month, and a 10.2% decrease from six months ago. (as well as being a 0.6% decrease from one year ago).                

Below is our monthly selection of homes in each property type showing the latest benchmark price for comparable homes in different areas of Metro Vancouver. The month-over-month price change for each benchmark helps as general indicator of price fluctuations typically resulting from the recent market activity. The extremities of each benchmark is also provided to give a better of idea of the range of prices making up the benchmark average. This may serve as a general guide, but for more specific information, please feel free to call me. I am happy to prospective buyers with the most up-to-date details on available homes in any neighborhood, and if you are considering listing your home for sale, I can develop a Customized Market Analysis to assist you in listing at the most optimal price in the current market. Please don’t hesitate to call. I love to help my clients in any way I can.  

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of November was $1,856,800, a decrease of 1.9% from the preceding month. The extremities of this average were West Vancouver at $3,127,800 and Sunshine Coast at $890,400.  The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $1,922,100, a decrease of 1.3% from the preceding month; Port Moody at $1,980,300, a decrease of 2.4% from the preceding month; and Burnaby South at $2,028,700, a decrease of 1.9% from the preceding month. The three municipalities closest to the benchmark on the lower side  of the average were: Burnaby East at $1,765,800, an increase of 3.4% from the preceding month; Coquitlam at $1,728,400, a decrease of 1.3% from the preceding month; and Vancouver East at $1,716,500, a decrease of 0.2% from the preceding month.

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of November was $1,027,900, a decrease of 1.5% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,428,200 and Sunshine Coast at $692,200. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,047,200, a decrease of 0.7% from the preceding month; Vancouver East at $1,051,700, an increase of 2.3% from the preceding month; and North Vancouver at $1,235,200, a decrease of 0.4% from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $1,000,700, a decrease of 2.1% from the preceding month; Coquitlam at $658,200, a decrease of 1.0% from the preceding month (Squamish is not included here because it is too far our for my clients); and Burnaby South at $944,400, a decrease of 2.0% from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of November was $720,500, a decrease of 0.9% the from the preceding month. The extremities of this average were West Vancouver at $1,252,500 and Sunshine Coast at $487,100. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $752,300, an increase of 0.1% from the preceding month; North Vancouver at $767,600, a decrease of 1.7% from the preceding month;  and Burnaby East at $778,300, an increase of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were:  Tsawwassen at $7118,200, a decrease of 3.1% from the preceding month;  Burnaby North at $704,600, a decrease of 1.0% from the preceding month; and Port Moody at $695,200, a decrease of 0.5% from the preceding month.

 

Let me help

 

These are challenging times for home buyers and homeowners. With Bank of Canada interest rates still rising, 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.