METRO VANCOUVER
Buyers remain hesitant; significant price declines in select areas
Prospective home buyers in Metro Vancouver continued to hold back for another month as September home sales posted a slight month-over-month decline of 2.7% -- although a much lower rate of decline than the 18% drop seen last month. On a year-over-year comparison, September’s residential sales total of 1,852 was a 3.8% while 26% below the 10-year seasonal average. Last month’s continued trend of buyer hesitancy has been ongoing since middle of the summer, despite expectations of a latent surge based on the Bank of Canada’s series of policy rate cuts that began last June. The most recent rate reduction on September 4 brought the central banks key rate to 4.25%, down from the long-standing 5% peak reached during its inflation fighting period. While mortgage rates have come down, home buyers appear to waiting for even better rates, as well as watching the trending decline in prices. The next Bank of Canada rate announcement is scheduled for October 23, when another cut is expected as Canada’s inflation rate is within the Bank’s target range. In the meantime, a growing inventory during this current sales slump is also contributing to price declines as supply overpowers demand. New listings in September reached a total of 3,352 properties across all property types, up 21% from the preceding month, and a 17% increase year-over-year. Metro Vancouver’s total inventory of 9,045 homes at the end of September was a 5% increase over the preceding month, and 39% above the same period one year ago. Prices have continued their recent monthly downward trend with September declines showing some significant reductions, for example the benchmark price for single family homes in Burnaby South saw a month-over-month drop of 4.3% last month. Similarly the benchmark price for townhouses in Vancouver East dropped 5% and condominium benchmark in Ladner dropped a stunning 11%. The combined benchmark price for a residential property in Metro Vancouver at the end of September was $1,176,700, a decline of 1.4% from the preceding month.
My monthly selection below of comparable properties across different areas of Metro Vancouver is a guide to home shopping for each property type with the comparative benchmark prices for each property type. Each overall benchmark has a cluster of the closest benchmarks on each side of the average in six geographical areas. The extremities of these benchmarks provides the range of prices making up the averages, and the month-over-month price changes are an indicator of the relative price fluctuations based on the current market activity. It is important to keep in mind that the average prices may conceal actual individual prices that you may find more attractive to your budget. If you would like to explore a particular neighborhood, please let me know. I can provide you with the most up to date information for new listings. And if you are thinking of listing you home for sale, I can develop a Customized Market Analysis for you property and advise you on the optimal listing price in the current market conditions. Please don’t hesitate to call. I love to help my clients with any of the real estate needs.
Detached homes
The benchmark price for a single-family detached home in Metro Vancouver at the end of September was $2,022,200, a decrease of 1.3% from the preceding month. The extremities of this average were Vancouver West at $3,269,200 and Sunshine Coast at $888,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North at $2,133,300, a decrease of 0.3% from the preceding month; Burnaby South at $2,154,400, a decrease of 4.3% from the preceding month; and Richmond at $2,168,800, 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 East at $1,982,200 decrease of 1.3% from the preceding month; Vancouver East at $1,848,700, a decrease of 1.1% from the preceding month; and Coquitlam at $1,613,600, a decrease of 0.8% from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of September was $1,099,200, a decrease of 1.8% from the preceding month. The extremities of this average were Vancouver West at $1,416,300 and Maple Ridge at $786,400. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $1,149,400, an increase of 0.5% from the preceding month; Coquitlam at $1,071,600, a decrease of 0.5% from the preceding month; and Vancouver West at $1,416,300, a decrease of 2.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East at $1,096,100, a decrease of 5.0% from the preceding month; Port Moody at $1,060,900, a decrease of 0.2% from the preceding month; and Port Moody at $1,060,900, a decrease of 0.2% from the preceding month.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of September was $762,000, a decrease of 0.8% from the preceding month. The extremities of this average were West Vancouver at $1,245,400 and Sunshine Coast at $526,400. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East $766,800, a decrease of 0.8% from the preceding month; North Vancouver at $797,900, a decrease of 0.6% from the preceding month; and Burnaby South at $831,800, a decrease of 2.0 % from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $758,400, an increase of 1.1% from the preceding month; Burnaby North at $742,900, a decrease of 1.8% preceding month; and Richmond at $737,800, a decrease of 0.9% 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.