METRO VANCOUVER

High demand outpaces new listings; declining supply exerts upward price pressure

The Metro Vancouver housing market continued to see home sales push upwards in October despite a declining overall supply of available homes across all property types. October’s dip in new listings dampened the optimism of a resurgence of new listings seen with September’s 28% monthly increase reported here last month. The short-lived new listing infusion was not able to keep pace with Metro Vancouver’s 3,494 home sales in October’s, 11% increase from the 3,149 homes sold in the preceding September. Even with last month’s new listings totalling 4,049 across detached homes, townhouses, and condominiums, October’s inventory dropped to the lowest level in three years at 8,034, 13% down from September and a 35.3% decrease compared to the same period one year ago. With last month’s sales volume over 22% higher than the 10-year average, the ongoing upward pressure on prices is continuing to press the urgency of completing purchases for home shoppers wishing to find a home within their planned home-buying budgets. Declining supply relative to demand has been a persistent problem for many months and is a significant factor in increasing prices in the Metro Vancouver market. Recent Bank of Canada announcements indicate that a rise in interest rates is on the nearby horizon. This may bring about a market cooling in price rises but the underlying issue of supply will have to be addressed through government housing policies. At the end of October, the composite benchmark price for a residential property in Metro Vancouver was $1,199,400, a 1.1% increase from the preceding month, and a 14.7% over the same month one year ago.

In my selection of benchmark prices below, you will find a cluster of prices around benchmark for different geographical areas in Metro Vancouver. These Benchmarks are averages of the prices that comparable homes in the area have sold for in the past month. For each benchmark I have included the extremes of the average as well as the nearest average prices above and below the benchmark. This will serve as a guide for home shoppers whose first consideration in price. You can then determine the area where you may find a home within your budget, However, it’s important to remember that averages are merely guidelines; there may be excellent bargains based on individual selling conditions. The benchmarks below also show the month-over-month price change in the area. This has become more significant in the current dynamic, high demand Metro Vancouver market. This month I draw your attention to some of the biggest one-month price changes since September: there was notable decrease of 3.3% that occurred in the average price of condominiums in West Vancouver. The largest average increases in average prices for townhouses were in Tsawwassen at 2.2% and in North Vancouver at 1.9%. For detached homes, there were very moderate increases in both North and South Burnaby at 0.2% for each. Please feel free to call me for me for more a more detailed analysis for a specific property type in an area you would like to live. I keep a close eye on housing availability and will be happy to advise you on specific homes in the area of your choice. And, if you are thinking of listing, I can advise you on your optimal asking price in this dynamic market and can prepare a Customized Market Analysis for a specific property showing recent sale prices in the neighbourhood.

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of October was $1,850,500, a 1.2% increase from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,450,400 and Sunshine Coast at $882,900. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $1,878,400, an increase of 1.0% from the preceding month; North Vancouver at $1,939,500, an increase of 1.4% from the preceding month; and Richmond at $1,950,600, no change from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South $1,816,300, an increase of 0.2% from the preceding month; Burnaby North at $1,743,700, a decrease of 0.2% from the preceding month; and Vancouver East at $1,717,400, an increase of 0.6% from the preceding month.

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of October was $975,000, an increase of 1.2% from the preceding month. The extremities of this average were Whistler at $1,308,100 and Sunshine Coast at $574,300. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $1,053,700, an increase of 0.6% from the preceding month; North Vancouver at $1,175,300, an increase of 1.9% from the preceding month; and Vancouver West (not West Vancouver) at $1,300,300, an increase of 0.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $961,200, an increase of 1.1% from the preceding month; Tsawwassen at $648,800, an increase of 2.2% from the preceding month; and Coquitlam at $878,100, an increase of 1.7% from the preceding month. (Squamish was excluded here because it is too far away for my clients.)

Condominiums

 

The benchmark price for a condominium in Metro Vancouver at the end of October was $746,400, an increase of 1.0% the from the preceding month. The extremities of this average were West Vancouver at $1,124,100 and Maple Ridge at $451,000. Only two municipalities were closest to the benchmark on the higher side of the average: Vancouver West at $823,200, an increase of 0.8% from the preceding month; and West Vancouver at $1,124,100, a decrease of 3.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $740,100, an increase of 1.5% from the preceding month; Port Moody at $732,800, a decrease of 0.4% from the preceding month; and Burnaby East at $740,100, an increase of 1.5% from the preceding month.

 

I am here to help you

Please let me know how I can assist you. If you are interested in buying, I can provide you with more detailed market information on your desired region and property type. I am also well experienced in finance and can assist you with your mortgage planning. In the event that you are thinking about listing, I can advise you on the optimal price range for your property with comparisons to other recent and historical sales in your neighborhood. And for anyone contemplating renovations, I have an excellent list of dependable, quality tradespeople at affordable rates.