METRO VANCOUVER

Sales dip; new listings soar; excellent purchase opportunities

Metro Vancouver’s residential market activity in September was a lopsided combination of weak demand and strong supply. Home sales dipped for the second consecutive month, registering a total of 1,875, a 4.2% decrease from the preceding month. While the rate of decrease was substantially less than the one month decline of 14% seen in August, September’s figure is still 1.2% higher than the same month last year, but 20.1% below the 10-year seasonal average. New listings, however, showed a big spike reaching 6,257, a significant increase by all measures: 54.4% higher the preceding month; 6.2% more the same month last year; and 20.1% above the 10 year seasonal average. Total inventory at the end of September was a robust 17,079 available properties across all property types, 14.4% higher than one year ago, and 36.1% above the 10 year seasonal average. With such an abundant home selection available, along with lower borrowing rates and easing prices, a rationale for the paucity of actual home buyers can be found in the headwinds faced by the country’s economic growth. The full impact of U.S. tariffs has yet to be felt here, but Canada’s job market has been cooling and wage growth has slowed leading to labour strikes and unrest. Inflation in key consumer goods such a groceries continues and consumer spending has been slowing generally. Canada’s goods trade volume fell by more than 10% in the second quarter of this year, and despite efforts to diversify trade in non-U.S. markets, Canadian exports to countries other than the U.S. declined this past summer. British Columbia’s softwood lumber industry has been particularly hard hit. In sum, considerable uncertainty remains in the economy. For many prospective buyers, this produces a general wait-and-see attitude. However, the housing market itself holds excellent opportunities for buyers at present, even against the background of negative economic conditions. Plentiful inventory provides room for negotiations, and easing prices continue to offer desirable purchase opportunities. With the Bank of Canada’s latest rate cut to 2.5%, there is opportunity to find very affordable commercial mortgages now under 4% for both variable and fixed five-year terms. Watch for next central bank announcement is October 29 for another possible rate cut if the economy needs another boost. At the end of September, the benchmark price for a residential property in Metro Vancouver was $1,142,100, a decrease if 0.7% from the preceding month.

In my monthly selection below of benchmark prices, you will find a guide to recent average prices for comparable homes in different areas of Metro Vancouver. The overall benchmark average is shown with the three closest average prices on each side of the benchmark. If you are interested in a particular neighbourhood, please call me and I can provide you with the most up-to-date information on actual prices for listed properties. And  if you are interested in selling your home, I can prepare a Customized Market Analysis of your 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 their real estate needs.  

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of September was $1,933,100, a decrease of 0.9% from the preceding month. The extremities of this average were Vancouver West at $3,232,600 and Sunshine Coast at $873,300. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North $2,032,800, a decrease of 1.8% from the preceding month; Richmond at $2,044,800, a decrease of 3.1% from the preceding month; and Port Moody at $2,080,500, a decrease of 0.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby East at $1,877,400, a decrease of 5.7% from the preceding month; Vancouver East at $1,756,800, a decrease of 1.6% from the preceding month; and Coquitlam at $1,720,000 no change from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of September was $1,069,800, a decrease of 0.9% from the preceding month. The extremities of this average were Whistler at $1,641,300 and Sunshine Coast at $748,600. The three municipalities closest to the benchmark on the higher side of the average were: North Vancouver at $1,297,900, a decrease of 0.9% from the preceding month; Vancouver West at 1,373,700, a decrease of 1.5% from the preceding month; and Whistler at $1,641,300, a decrease of 2.2% from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Coquitlam at $1,052,000, a decrease of 3.2% from the preceding month; Vancouver East at $1,048,600, a decrease of 2.7% from the preceding month; and Burnaby South at $1,044,700, an increase of 0.1% from the preceding month.

 

Condominiums                           

 

The benchmark price for a condominium in Metro Vancouver at the end of September was $728,800, a decrease of 0.7% from the preceding month. The extremities of this average were: West Vancouver at $1,186,400 and Sunshine Coast at $460,600. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby North $715,400, a decrease of 0.5% from the preceding month; North Vancouver at $790,500, a decrease of 0.5% from the preceding month; and Burnaby South at $601,400, an increase of 0.7% 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; Port Moody at $711,100, a decrease 1.7% from preceding month; and Richmond at $704,600, no change 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.