METRO VANCOUVER

New listings expand inventory; prices still declining, with exceptions

The Metro Vancouver residential market showed positive signs in its replenishment of housing stock in September, even as home sales continued to decline under the ongoing central bank regime of interest rate hikes. With the 4,329 new listings across all properties types last month, the net available inventory, after sales, expanded to 9,971 homes, a 3.2% increase from the previous month. This ample selection of homes in Metro Vancouver provides an attractive range for buyers, who now have a comfortable purchasing environment, and a composite benchmark price still close to 30% higher than three years ago. While the market continues to cool from its previously overheated  pace, the present conditions present excellent purchase opportunities. Despite the ongoing decline in sales volumes as many prospective buyers face greater challenges in mortgage financing, it is important to remember that the rate of sales decline in each of the past six months has been measured against the extraordinary surge in home buying during the pandemic’s low interest period. Last month, Metro Vancouver sales dropped by 9.8% from the preceding month, and notably this was a 46.4% decrease from the homes sold in the same period one year ago. Nonetheless, last month’s sales were 35.7% below the 10-year September average, an indication of the impact of the current mortgage rate increases. Along with declining sales and the increasing stock of properties, home prices dropped again in September, which can seen in the selection of comparative home benchmarks below. However, it is worth noting that even with a decline this past month, the composite benchmark price for Metro Vancouver home last month was still 3.9% higher than it was one year ago.  

The composite benchmark price for residential property in Metro Vancouver at the end of September was 1,155,300, a decline of 2.1% from the preceding month. In the following selection for one-month benchmark price changes, I show the most recently published  figures at the end of September for different geographical areas of Metro Vancouver. Each comparison shows the benchmarks clustered around the overall benchmark for a particular property category, along with the extremities of the average in order to inform you of the range of prices within the benchmark.  While price declines have predominated in most areas, one notable exception last month was in Burnaby East where the benchmark price for a detached family home increased by 3.2% from the preceding month. I would therefore encourage prospective buyers to examine these changes in this regular section of our monthly newsletter. While monthly fluctuations do not necessarily signal a trend, they do provide insight in the sales activity that can drive price changes. Last month, among the three property types, condominiums were the lead sellers, with 888 sales; detached home followed with 525 sales; and townhouses sold in third place with 274 sales. As you peruse these prices, keep in mind that benchmark are averages for comparable homes and are only a guideline for your home shopping. If you would like details on any area please don’t hesitate to call me. I can provide buyers with the most current details for their area of choice, and for sellers, I can prepare a Customized Market Analysis for your property. I am always happy 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 September was $1,906,400, a decrease of 2.4% from the preceding month. The extremities of this average were West Vancouver at $3,264,900 and Sunshine Coast at $946,500.  The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $1,957,400, a decrease of 3.3% from the preceding month; Port Moody at $2,079,400 a decrease of 1.2% from the preceding month; and Burnaby South at $2,111,300, a decrease of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side  of the average were: Burnaby East at $1,784,800, an increase of 3.2% from the preceding month; Coquitlam at $1,779,200, a decrease of 0.9% from the preceding month; and Vancouver East at $1,741,300, a decrease of 3.0% from the preceding month.

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of September was $1,048,900, a decrease of 1.9% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,455,700 and Sunshine Coast at $723,400. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,051,500, a decrease of 0.7% from the preceding month; Vancouver East at $1,069,800, a decrease of 3.4% from the preceding month; and North Vancouver at $1,220,700, a decrease of 5.3% from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $710,200, a decrease of 1.3% from the preceding month; Ladner at $708,900, a decrease of 0.7% from the preceding month; and Burnaby North at $707,700, a decrease of 1.4% from the preceding month.

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of September was $728,500, a decrease of 1.8% the from the preceding month. The extremities of this average were West Vancouver at $1,193,200 and Sunshine Coast at $542,000. The three municipalities on the higher side of the average were: Tsawwassen at $733,000, a decrease of 1.2% from the preceding month; Burnaby South at $750,300, a decrease of 3.4% from the preceding month;  and Burnaby East at $766,400, a decrease of 3.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $710,200, a decrease of 1.3% from the preceding month; Ladner at $708,900, a decrease of 0.7% from the preceding month; and Burnaby North at $707,700, a decrease of 1.4% from the preceding month.

 

I can help

 

These are challenging times for home buyers and homeowners. With Bank of Canada interest rates still rising, 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.