METRO VANCOUVER
Buyers’ window of opportunity; interest rates drop, prices easing.
Metro Vancouver’s residential market experienced a month-over-month drop in both sales and new listings in October, down 22% and 13% respectively from September. In the sales category it was the third consecutive month of declining transactions, but the drop off in new listings was in sharp contrast to the 50% inventory spike seen last month. In a longer term comparison, this past October’s sales registered below both the one-year and ten-year comparisons, 14% down for each period, in a month which normally sees a seasonal surge. The net result, however, is an attractive market for buyers at present. Supply remains high, offering an excellent choice across all property types, with 16,393 available homes at the end of September. This is 13% over the same month last year and 36% above the 10-year seasonal average. Along with the Bank of Canada’s last rate cut at the end of October, which lowered the policy rate by 25 basis points to 2.25%, current market conditions make it an excellent time to negotiate a home purchase. The central bank has signalled it does not intend to make further cuts this year, suggesting a possible rise in inflation returning next year. With the latest central bank rate cut, current commercial variable rate mortgages have dropped to around 3.45% for five year terms, which is below the five year fixed rate around 3.70%. Factor in easing prices now occurring, and prospective buyers have an excellent window of opportunity for favourable terms in a home purchase. Few areas did not see price declines in October, with some of the biggest declines in Single Family Detached homes, notably Burnaby East down 3.%% and Burnaby North down 2.5%; In Townhouses, Burnaby East down 3.2%; in Condominiums, Port Moody down 2.4% and Vancouver West down 2.3% and West Vancouver down 8.0%. The composite benchmark price for a residential property in Metro Vancouver at the end of October was $1,132,700, a 0.9% decline from the preceding month.
I invite you to review my monthly guide in the section below to benchmark prices for each property type across Metro Vancouver municipalities. For each property type, I show the overall benchmark price which is an average price in its category. Other benchmarks are then grouped around the overall average for comparable homes in different municipalities. You will see the three closest average prices on each side of the overall average (above and below) to guide you to a neighborhood to find a home with similar characteristics and with a price reflecting the demand in its municipality. The month-over-month price changes indicate the current market activity, and the extremities of the overall benchmark price indicates the range of prices making of the average. However, because benchmarks are averages, please call me for specific listed prices if you are interested in a particular neighborhood. And if you are considering listing your property for sale, I can advise you on the optimal asking price in the current market conditions. Please feel free to call me with any questions. 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 $1,916,400, a decrease of 0.9% from the preceding month. The extremities of this average were Vancouver West at $3,246,200 and Sunshine Coast at $870,100. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North $1,981,900, a decrease of 2.5% from the preceding month; Richmond at $2,027,100, a decrease of 0.9% from the preceding month; and Port Moody at $2,081,500, an increase of 0.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,809,400, a decrease of 3.6% from the preceding month; Richmond at $2,027,100, a decrease of 0.9% from the preceding month; and Coquitlam at $1,076,100 a decrease of 0.8% the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of October was $1,066,700, a decrease of 0.3% from the preceding month. The extremities of this average were Whistler at $1,664,300 and Sunshine Coast at $752,700. The three municipalities closest to the benchmark on the higher side of the average were: North Vancouver at $1,287,200, a decrease of 0.8% from the preceding month; Vancouver West at 1,378,900, an increase of 0.4% from the preceding month; and Whistler at $1,644,300, an increase of 1.4% from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East at $1,053,900, an increase of 0.5% from the preceding month; Richmond at $1,049,100, an increase of 0.6% from the preceding month; and Squamish at $1,049,000, an increase of 16% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of October was $718,900, a decrease of 1.4% from the preceding month. The extremities of this average were: West Vancouver at $1,192,000 and Sunshine Coast at $481,600. The three municipalities closest to the benchmark on the higher side of the average were: Port Moody $727,900, an increase of 2.4% from the preceding month; Burnaby East at $753,000, an increase of 0.3% from the preceding month; and Vancouver West at $785,500, a decrease of 2.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $715,400, a decrease of 0.8% from the preceding month; Richmond at $696,800, a decrease 1.1% from preceding month; and Coquitlam at $785,500, a decrease of 2.3% from the preceding month.
Let me help
There are many ways I can help you with your real estate transactions. Please let me know how I can help in these challenging times. You may need help in managing your home ownership plans, or in adjusting your financial strategy for a home purchase. Perhaps you are thinking of listing your home for sale and want to understand the market to set your asking price. Let me help. I have a 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.