METRO VANCOUVER

Sales decline for third consecutive month; inventory up; prices downward

Residential sales in Metro Vancouver declined for the third consecutive month in October, although by a slight decrease of 3.5% compared to the previous month. This contrasts with the steep month-over-month decline of 16% seen in September which followed a negligible drop of 0.6% in August after a reasonably strong summer. However, on a 10-year comparison, the seasonal average is close to 30% down for October this year. Canada’s higher mortgage rates, which have been hiked successively over the past year in tandem with Bank of Canada policy rate increases from 0.25% to the current 5.%, appear to be achieving their market-cooling goal, however painful this is for new home buyers and home owners renewing previously lower-rate mortgages. Yet, the current sales slow-down is accompanied by another strong month for new listings – an overall good sign that market conditions appear to be adjusting to a greater balance as price increases level off or continue to inch downwards. October’s total of 1,996 sales, combined with new listings of 4,664 across all property types produced a total available inventory of 11,599 home in Metro Vancouver. This is over 12% higher than one year ago for this period, and 0.6% higher than the 10-year average. The increased selection of homes contributes to more favourable conditions for buyers presenting offers at present, as well as keeping supply high enough to see price declines in most areas. There was one month composite decrease of 0.8% for the lower mainland, and more than 70% of municipalities in Metro Vancouver showed month-over-month composite price decreases in October ranging from 0.5% to 1.5%. The composite benchmark price for a residential property in Metro Vancouver at the end of October was $1,198,500, a decrease of 0.6% from the preceding month.    

In the monthly selection of comparative benchmarks below you will find current benchmark prices for each property type in different areas of Metro Vancouver. Each benchmark is shown with the price change from the previous month. Benchmarks are average prices for comparable properties. The benchmarks in each of the six municipalities I have selected for each property type are grouped around the overall benchmark for that property type. The grouping shows the three benchmarks on the upper side of the average, and the three benchmarks on the lower side of the average. These will provide with you with a general guide for home shopping within your budget. However, remember that benchmarks are averages within the extremities as provided. There can therefore be specific prices on particular properties that are farther from the average which may represent a price that may be a closer fit for you finances. Please feel free to call me for more details on sale properties in any neighbourhood. And if you are considering listing you home for sale, I can prepare a Customized Market Analysis (CMA) for your property and assist you determining the optimal asking price in the current market. I watch the changing market closely and can provide you with the most up-to-date information for the area of your choice. I am always happy to help my clients so please don’t hesitate to call.      

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of October was $2,001,400, a decrease of 0.8% from the preceding month. The extremities of this average were Vancouver West at $3,436,500 and Sunshine Coast at $880,400. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,079,300, an increase of 1.5% from the preceding month; Port Moody at $2,089,100, an increase of 0.4% from the preceding month; and Richmond at $2,155,600, a decrease of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,894,800, an increase of 1.8% from the preceding month; Vancouver East at $1,878,200, a decrease of  1.1% from the preceding month; and Coquitlam at $1,796,500, an increase of 0.4% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of October was $1,100,500, an increase of 0.2% from the preceding month. The extremities of this average were Whistler at $1,545,400 and Sunshine Coast at $768,300. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,104,800, a decrease of 1.9% from the preceding month; Vancouver East at $1,118,500, a decrease of 1.9% from the preceding month; and North Vancouver at $1,349,100, an increase of 2.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,062,900, a decrease of 1.1% from the preceding month; Port Moody at $1,047,200, a decrease of 0.9% from the preceding month; and Tsawwassen at $1,014,100, an increase of 1.4% 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 October was $770,200, an increase of 0.2% the from the preceding month. The extremities of this average were West Vancouver at $1,289,900 and Maple Ridge at $531,600. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $8.7,900, an increase of 1.4% from the preceding month; Burnaby South at $829,300, a decrease of 0.3% from the preceding month; and Vancouver West at $851,800, an increase of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $763,400, an increase of 1.8% from the preceding month; Burnaby North at $753,700, an increase of 0.9% from the preceding month; and Port Moody at $751,700, an increase of 3.8% 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.