METRO VANCOUVER
Sales boom; listings abound; easing mortgage rules on horizon.
Surging sales broke though months of hesitancy in October as home buyers across Metro Vancouver appear finally to have responded to lower borrowing costs. With the fourth consecutive rate cut by Canada’s central bank in late October, the key policy rate underpinning variable mortgage interest costs dropped 50 basis points to 3.75% although the effect of the three previous cuts appeared to gain traction in the market place earlier in the month. Total sales for the month of October jumped to 2,632 across all property types, a 42% increase from September and 32% higher than the same period one year ago. Inventory also rose sharpy in October. New listings for the month reached a total of 5,452, a 63% increase over new listings in in the previous month, and 17% more than in th same period one year ago, as well as being 20% above the 10-year average. Even with the surge in sales, October’s spike in new listings has produced one of the biggest inventories in Metros Vancouver in over a decade. At the end of October, the supply of available homes across all property types was 14,477 homes, a 60% increase above the end of September. This was also close to 25% over the same month last year, and 26% above the 10-year average. Many home buyers last month were able to benefit as well from the downward trend on prices seen over recent months. However, prospective buyers should be aware that upward price pressure may return quickly with a sustained demand level seen this past month. New federal rules on the horizon will also likely lead to increasing demand. Effective December 15, 2024, the price cap for insured mortgages will increase from $1-million to $1.5-million, allowing more home buyers to qualify for a mortgage with a downpayment below 20%. Other measures will expand eligibility to first-time purchasers of newly built homes, including condominiums, for 30-year mortgages as well as allowing insured mortgage holders to switch lenders at renewal without being subject to another mortgage stress test. While the new measures are a welcome incentive to home buyers, they bring a greater likelihood of upward home prices as well. At the end of October, the composite benchmark price for residential property in Metro Vancouver was $1,172,200, a 0.6 decrease from the preceding month, while 36% higher than 5 years ago.
Please look at my monthly selection below for benchmark prices for comparable property types in different areas of Metro Vancouver. Each overall benchmark is shown with a cluster of the closest prices on each side of the average. The month-over-month price change is a typical fluctuation related to recent market activity. The extremities of each benchmark provides indicates the range of prices in the average so please give me call if you would like the most up-to-date information for a home in any particular neighborhood. And if you are thinking of listing your home for sale, I can prepare a Customized Market Analysis for you property and advise you on the optimal listing price in this dynamic 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 October was $2,002,900, a decrease of 1.0% from the preceding month. The extremities of this average were Vancouver West at $3,369,100 and Sunshine Coast at $900.900. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $2,126,400, a decrease of 4.1% from the preceding month; Burnaby North at $2,130,700, a decrease of 0.1% from the preceding month; and North Vancouver at $2,135,600, a decrease of 3.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,995,600, decrease of 0.7% from the preceding month; Vancouver East at $1,891,900, an increase of 2.3% from the preceding month; and Coquitlam at $1,804,300, a decrease of 0.5% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of October was $1,108,800, an increase of 0.9% from the preceding month. The extremities of this average were Whistler at $1,734,100 and Maple Ridge at $768,900. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,127,100, a decrease of 1.9% from the preceding month; Vancouver East at $1,156,400, an increase of 5.5% from the preceding month; and North Vancouver at $1,364,500, an increase of 7.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $1,046,400, a decrease of 1.4% from the preceding month (Squamish is excluded here because it is too far away for my clients); Coquitlam at $1,033,700, a decrease of 3.5% from the preceding month; and Burnaby South at $1,035,000, an increase of 1.3% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of October was $757,200, a decrease of 0.6% from the preceding month. The extremities of this average were West Vancouver at $1,241,500 and Sunshine Coast at $515,800. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East $787,200, an increase of 0.1% from the preceding month; North Vancouver at $790,400, a decrease of 1.0% from the preceding month; and Burnaby North at $745,500, an increase of 0.3 % from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $746,600, an increase of 1.5% from the preceding month; Burnaby North at $745,000, an increase of 0.3% preceding month; and Richmond at $735,800, a decrease of 0.2% 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.