METRO VANCOUVER

New listings abound as sales chill; prices decline for all property types

While Metro Vancouver residents are no doubt feeling the drop in temperatures at this time of year, home sales in the region also plunged sharply in November. The sales volume for November declined close to 15% from the preceding month of October. November’s decline was the fourth consecutive month that sales have dropped in the region although this last decline was significantly more than October’s 3.5% drop month-over-month. Yet, while 33% below the 10-year seasonal average, last month’s volume was notably a 4.7% increase over the same month one year ago. For prospective buyers, the Metro Vancouver market currently offers a plentiful inventory of homes and prices declines reflecting the slower pace of sales. New hone year ago. Although the current market is considered as balanced by historical standards, meaning downward or upward price pressures are relatively flat in a range of the sales-to-active listing ratios between 12.0% and 20.0% for a sustained period, there was nonetheless a predominance of modest price declines in each property category in November. Declines were typically in the range of 0.50% to 2.0% although larger declines as much as 4.0% lower in November than October were recorded for single family detached homes. This is no doubt a market response to the Bank of Canada’s high interest rates, but with the central bank’s second consecutive hold on further rate increases beyond the current 5.0% level last week, it appears that upward price pressure is now in check. Indeed, the downward trend seen in price declines for single detached homes in particular is within a single percentage point of moving into ‘Buyers’ Market’ territory. The current market has some exceptional offerings so I encourage you to look at comparative prices at this time. Overall, the composite benchmark price for residential property in Metro Vancouver at the end of November was $1,185,100, a 1.0% decline from the preceding month.

Please examine the selection of benchmark prices below for a comparison of current prices in different areas of Metro Vancouver. Each property category is illustrated with average prices in three municipalities above and below the overall benchmark price for that property type in Metro Vancouver. The extremities of each benchmark is also given so you can see the range of prices making up the average. The month-over-month price change is also a general indicator of the current sales activity in an area. During this past November, the greatest month-over-month increase in sales occurred in condominiums, up 1.0% from October. Sales of detached homes followed with a 0.9% increase from October; and sales in townhouses were 0.7% higher. Keep in mind when browsing the statistics that benchmarks are averages and particular prices may match your budget more precisely. If you are interested in any particular area, please let me know. I can provide you with the most up-to-date asking prices. And if you are thinking of listing your property, I can produce a Customised Market Analysis and advise you on the optimal listing price in the current market. Please don’t hesitate to call. I am happy to help 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 $1,982,600, a decrease of 0.9% from the preceding month. The extremities of this average were Vancouver West at $3,468,300 and Sunshine Coast at $864,300. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,057,900, a decrease of 1.0% from the preceding month; Port Moody at $2,077,300, a decrease of 0.6% from the preceding month; and Richmond at $2,162,800, a decrease of 0.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East at $1,868,000, an increase of 0.5% from the preceding month; Vancouver East at $1,819,400, a decrease of  4.0% from the preceding month; and Coquitlam at $1,788,800, a decrease of 0.4% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of November was $1,092,600, a decrease of 0.7% from the preceding month. The extremities of this average were Whistler at $1,527,300 and Sunshine Coast at $766,800. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,097,600, a decrease of 0.7 from the preceding month; Vancouver East at $1,109,800, a decrease of 0.8% from the preceding month; and North Vancouver at $1,357,800, an increase of 0.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $1,033,500, a decrease of 1.3% from the preceding month; Coquitlam at $944,100, a decrease of 0.9% from the preceding month; and Burnaby South at $1,005,900, a decrease of 1.3% from the preceding month (Squamish has been excluded here as it too far out for my clients).

 

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of November was $762,700, a decrease of 1.0% from the preceding month. The extremities of this average were West Vancouver at $1,240,600 and Maple Ridge at $531,100. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $806,600, a decrease of 1.7% from the preceding month; Burnaby East at $807,900, no change from the preceding month; and Vancouver West at $842,800, a decrease of 1.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $753,500, a decrease of 1.3% from the preceding month; Burnaby North at $741,200, a decrease of 1.7% from the preceding month; and Ladner at $725,300, an increase of 2.2% 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.