METRO VANCOUVER
Bank of Canada makes another big interest rate cut; Prices steady – for now
Metro Vancouver’s residential market saw another month of robust sales in November with a total 2,181 sales across all property types. While dipping by 17% from the previous month, November’s sales can still be seen as a strong recovery continuing the spike of 42% seen in October after months of purchaser hesitancy. November’s sales were also 28.1% higher than one year ago. New listings totaling 3,725 in October were also strong. Although a 32% decline, this should be viewed as well with regard to October’s big surge in listings. Compared with the same period one year ago, November’s new listing were 10.6% higher. Overall, the Metro Vancouver market had a plentiful supply of available homes at the end of November with 13,245 homes across all property types, 21. 2% higher than the same month one year ago, and 5.4% above the 10-year seasonal average. This level of inventory provides home shoppers with an excellent range of choice in all property categories. It also coincides with other factors making for an immediate favorable window of opportunity for home buyers. The Bank of Canada’s most recent policy rate cut last week should create even better variable mortgage rates. The central’s bank’s rate reduction of 50 basis points brought its key interest rate to 3.25%, the upper end of the what the Bank calls its neutral range for inflation. Rate Hub Canada noted soon after the central bank’s cut on December 11, the prime rate at most Canadian mortgage lenders had decreased to 5.45%. For fixed 5-year term mortgages, the variable rate at Canada’s big six banks was a low as 4.14%. The lower rates can be expected to stimulate demand so prospective home buyers are encouraged to act now. The expected upward price pressure has not yet responded to the anticipated increase in demand but this is likely to occur in the new year. Overall prices levels in Metro Vancouver are still holding steady across all property types. At the end of November, the composite benchmark price for a residential property in Metro Vancouver was $1,172,100, no change from the preceding month.
In my monthly selection below, you can compare the most recent benchmark prices for each property type in different areas of Meto Vancouver. The range of each benchmark is shown with its extremities. As an average price for a comparable property, each overall benchmark is shown with a cluster of the closest averages above and below the category average. The month-over-month price change is also shown, an indicator of the relative market activity in the area for the last month. These monthly fluctuations typically represent the relative demand, and provide the shopper with a general insight into market trends. However, it is important to remember that benchmarks are averages. Actual prices may be found that more closely match you budget. Please feel free to call me for the most up-to-date prices in any neighborhood you may be interested in. I keep a close eye on the market and am happy to help you with your purchase plans. And if you are thinking of listing you home for sale, I can prepare a Customized Marker Analysis for your property and advise you on the optimal listing price in the current market conditions.
Detached homes
The benchmark price for a single-family detached home in Metro Vancouver at the end of November was $1,997.400, a decrease of 0.3% from the preceding month. The extremities of this average were West Vancouver at $3,384,400 and Sunshine Coast at $933,200. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $2,085,600, a decrease of 1.9% from the preceding month; Burnaby North at $2,108,900, a decrease of 1.0% from the preceding month; and Richmond at $2,118,700, a decrease of 0.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,952,700, decrease of 2.1% from the preceding month; Vancouver East at $1,8634.700, a decrease of 1.5% from the preceding month; and Tsawwassen at $1,801,300, an increase of 4.2% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of November was $1,117,600, an increase of 0.8% from the preceding month. The extremities of this average were Whistler at $1,741,200 and Maple Ridge at $774,500. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,118,200, a decrease of 3.2% from the preceding month; Richmond at $1,134,300, an increase of 0.6% from the preceding month; and Port Moody at $1,134,300, an increase of 0.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,067,100, an increase of 2.3% from the preceding month; Burnaby South at $1,055,200, a decrease of 2.0% from the preceding month; and Port Moody at $1,027,300, a decrease of 1.8% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of November was $752,800, a decrease of 0.6% from the preceding month. The extremities of this average were West Vancouver at $1,212,800 and Maple Ridge at $525,500. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody $755,200, an increase of 1.1% from the preceding month; Burnaby East at $792,900, an increase of 0.7% from the preceding month; and North Vancouver at $796,400, an increase of 0.7 % from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $755,200, an increase of 1.1% from the preceding month; Burnaby East at $792,900, an increase of 0.7% preceding month; and Coquitlam at $728,300, a decrease of 0.9% 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.