METRO VANCOUVER
New listings up significantly; price declines continue
Metro Vancouver home sales in September saw a decline of 16% from the previous month while still remaining 13% higher than the same period one year ago. Benchmark prices across all property types also declined for a second consecutive month as inventory levels in the region showed a significant increase month-over-month in September. While a seasonal sales decline is expected in the fall following typically higher sales volumes in summer months, the current drop is also attributed by many analysts to today’s mortgage rates, now at a ten-year high. With September’s home sales total more than 26% below the 10-year average, market watchers may be placing more weight on higher mortgage costs than other factors affecting the sales slow-down. Canada’s Consumer Price Index inflation rate dropped to 3.8% from 4.0% in August, but still has a way to go to reach the Bank of Canada’s target rate of 2.)%/ The central bank’s policy rate remains at 5.0% and WOWA.ca reports current 5-year fixed mortgages rates ranging from 5.49% to 7.4% while 5-year variable rates are now very similar. However, the significant month-over-month spike in new listings may provide prospective buyers with the increased variety they have been waiting for, as well as helping to moderate rising prices as seen for several months. New listings in September reached a total of 5,446 across all property types, a significant increase of 38% over the 3,943 new listings in August. This brought the total inventory in Metro Vancouver at the end of September to 11,382 homes, almost 10% higher than the same month last year, and approaching – only 6% below – the ten year average. The increase in supply will be welcomed by home buyers as a moderating factor in the demand-push on price levels. With overall inventory now rising above low supplies earlier this year, prospective buyers with tight mortgage qualifications will be particularly interested if downward prices will continue off what may be their peak at the present time. The composite benchmark price for a residential property in Metro Vancouver at the end of September was $!,203,300, a 0.4% decrease from the preceding month.
To examine current benchmark prices across Metro Vancouver, please review the section below. For each property type you will find the average prices of three municipalities closest to the overall benchmark on each side of the average. The extremities of each average price will give you the range of prices within their average. The selected price benchmarks are also shown with their percentage of change from the previous month, serving as a general indicator of market activity in the residential area. This is important because benchmarks are averages and you should keep in mind that among the particular prices within the average you may find price more aligned with your budget. I am able to provide you with detailed information on any neighbourhood you are interested in, so please don’t hesitate to call me. Prospective buyers may wish to get the most up-to-date on information new listings. And if you are considering listing your property for sale I can develop a Customised Market Analysis for you property, and advise you on the optimal listing price in the current market. Please feel free to call me with any questions. 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 $2,017,100, a decrease of 0.4% from the preceding month. The extremities of this average were Vancouver West at $3,553,600 and Sunshine Coast at $803,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,048,900, an increase of 0.1% from the preceding month; Port Moody at $2,082,000, an increase of 0.3% from the preceding month; and Richmond at $2,179,100, a decrease of 0.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East at $1,898,100, a decrease of 0.8% from the preceding month; Burnaby East at $1,861,600, a decrease of 3.2% from the preceding month; and Coquitlam at $1,798,300, a decrease of 0.5% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of September was $1,098,400, a decrease of 0.5% from the preceding month. The extremities of this average were: Vancouver West at $1,457,900 and Maple Ridge at $774,800. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,126,200, an increase of 0.5% from the preceding month; Vancouver East at $1,140,400, an increase of 0.4% from the preceding month; and North Vancouver at $1,313,000, a decrease of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,075,100, an increase of 0.3% from the preceding month; Port Moody at $1,056,800, no change from the preceding month; and Tsawwassen at $1,028.300, an increase of 2.4% 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 September was $768,500, a decrease of 0.2% the from the preceding month. The extremities of this average were West Vancouver at $1,331,800 and Maple Ridge at $542,600. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $796,700 a decrease of 0.3% from the preceding month; North Vancouver at $811.900, an increase of 0.7% from the preceding month; and Burnaby South at $822,900, an increase of 0.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $750,200, an increase of 0.4% from the preceding month; Burnaby North at $746,800, a decrease of 0.1% from the preceding month; and Ladner at $738,400, an increase of 0.6% 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.