Home buyers in the Metro Vancouver area this month have more to be happy about than just the sunnier weather that is showing up more often!
There is also a brighter picture for home selection than has been the case for some time. Based on figures at the end of April, the number of new listings increased by nearly 31 per cent compared to the preceding month. That’s a big jump. In actual numbers it was 5,820 new listings across all property types, bringing the total inventory for detached homes, townhouses, and condominiums in Metro Vancouver to 9,822, so there is no doubt going to be considerable interest in open houses this month. If you are among those prospective buyers who have pre-qualified for a mortgage, then you have another advantage going for you. Your mortgage qualification would have made you aware of the more stringent requirements set by the federal government, which means that you will likely have fewer buyers competing for a property, and with the increased inventory this can help keep the price down. This was part of the government of the government strategy to slow the rate of price increases, and it appears to be working right now. However, there is still plenty of activity in the market to keep moving prices upward, although perhaps at a slower rate. Overall, Metro Vancouver prices across all property types inched up 0.7 per cent from the preceding month. Most of the sales that occurred in April were for condominiums which was close to 50 per cent of all sales activity. Townhouse sales took slightly over 36 per cent of the activity, and detached residences were just under 15 per cent. The Benchmark price for all property types at the end of April was $1,092,000
It is worth comparing the Benchmark price for detached properties in Metro Vancouver at $1,605,800 at the same time. With approximately $½-million difference from the overall benchmark, we can more clearly understand why many home buyers have opted for other types of residential properties. There’s actually been a slight decline of 0.2 per cent in detached properties from March to April this year. In fact, since April last year, there’s been a significant decrease of 33 per cent in detached property sales. Attached properties, on the other hand, showed a relatively larger month-over-month increase in the respective Benchmarks. Metro Vancouver condominiums had a Benchmark price of $701,000 at the end of April, which was a 1.1 per cent increase from March. Benchmark price of a townhouse was $854,200, a 2.3 per cent increase for the same period. Below is a survey of average prices for each property type in areas with the upper and lower sides are closest to the overall Benchmark. As usual, where the extremities include the Sunshine Coast, Squamish, or Whistler, I note the area for its high or low end of the average but do not survey the property types in these areas as they are too far from the Metro Vancouver area desired by my clients.
Single Detached Homes
The extremities of the Metro Vancouver average Benchmark for single detached homes were Vancouver West at $3,054,000 and the Sunshine Coast at $614,600. Municipalities with average prices closest to the Metro Benchmark on the higher side were South Burnaby at $1,675,800, a month’s increase of 0.1 per cent; North Vancouver at $1703,400, a month’s decrease of 1.2 per cent; and Richmond at $1,684,500, a month’s decrease of 1.4 per cent. Closest on the lower side of the Metro Benchmark were North Burnaby at $1,595,800, a month’s increase of 3.3 per cent; Vancouver East at $1,544,100, a month’s decrease of 1.3 per cent; and Port Moody at $1,510,200, a month’s increase of 1.7 per cent.
Townhouses
The Metro Vancouver Benchmark price for townhouses at the end of April 2018 was $854,200. The extremities of this average were West Vancouver at $1,302,200 and Maple Ridge at $585,200. Municipalities with average prices closest to the Metro Benchmark on the higher side were Vancouver East at $933,500, a month’s increase of 2,8 per cent; North Vancouver at $1,030,900, a month’s increase of 2.5 per cent; and Vancouver West at $1,302,200, a month’s increase of 2.5 per cent. Closest on the lower side of the Metro Benchmark were Richmond at $839,00, a month’s increase of 1.0 per cent; South Burnaby at $834,900, a month’s increase of 0.9 per cent; and Ladner at $786,100, a month’s increase of 0.8 per cent.
Condominiums
The Metro Vancouver Benchmark price for condominiums at the end of April 2018 was $701,000. The extremities of this average were West Vancouver at $1,295,900 and Maple Ridge at $329,000. Municipalities with average prices closest to the Metro Benchmark on the higher side were South Burnaby at $715,800, a month’s decrease of 1.5 per cent; East Burnaby at $731,500, a month’s increase of 0.5 per cent; and Vancouver West at $841,700, a month’s decrease of 0.4 per cent. Closest on the lower side of the Metro Benchmark were Port Moody at $692,300, a month’s increase of 2.5 per cent; Richmond at $684,100, a month’s increase of 3.7 per cent; and North Vancouver at $611,900, a month’s increase of 1.8 per cent.
Of general interest this month I want to draw you attention to those average prices that have declined over one month. You will note that most of the decreases are for the property type of Single Family Detached. While it is only a snapshot in time, it appears to confirm the overall picture for the Metro Vancouver Market sales activity, which is a move away from Single Family Detached to the other two property types. In condominium and townhouse categories, you see several month-over-month price increases that stand out as significantly higher than others. You may find these monthly changes a helpful key to watching the market both for purposes of obtaining a good current price, and for what could be a good investment property as well. Please call me if you would like any further information on any property type in a specific area. I am always happy to help you your individual needs.
FRASER VALLEY
The Fraser Valley, like the Greater Vancouver region, also saw an increase in housing inventory at the end of April. New property listings across all types increased by 3,429, nearly 20 pre cent more than new listings in March, bringing the total Valley inventory to 5,667. making for a great selection this Spring. However, even with a substantial increase in available residential properties, prices are continuing to rise each month. The combined Benchmark price for all residential property types across the lower mainland at the end of April was $1000,900, an increase of 0.9 per cent from the preceding month. But it’s important to note that this Spring the actual number of sales for the month of April was down close to 25 per cent compared to one year ago. This does not mean that demand is not still high for a Valley property, but it appears that there is some current hesitancy in the market which might be attributable to uncertainty about prices under new mortgage qualifying requirements. Nonetheless, there is still strong demand generally, and sales of townhouses and condominiums continues to dominate the market activity. One again, over 50 per cent of April’s total of 1,708 sales were for townhouses and condos. These two property types sell very quickly, with the average time after listing being 14 days for condominiums and 16 days for townhouses, compared to 26 days for a single detached home. The price point between single detached homes and the other types appears to be the basis for this difference in Fraser Valley sales activity. The Benchmark price for a single detached property at the end of April was $1,009,200. With the Benchmarks for townhouses and condos still below the $1-million mark, the Valley continues to be a favorite location for first time buyers, whether singles or young families. Below is a breakdown for this market segment with properties close to both sides of the average Benchmark in Fraser Valley areas.
Townhouses
The Benchmark price for a Fraser Valley townhouse at the end of April was $691,700. The high and low extremities for the average were in South Surrey/White Rock at $525,100 and Abbotsford at $346,600. Closest to the Benchmark on the higher side were North Surrey at $577,000, a month’s increase of 0.6 per cent; Surrey at $584,900, a month’s increase of 1.2 per cent; and North Delta at $604,800, a month’s increase of 2.3 per cent. On the lower side of the Benchmark were Langley at $524,400, a month’s increase of 1.8 per cent; Mission at $449,300, a month’s increase of 0.6 per cent; and Abbotsford at $390,200, a month’s increase of 1.9 per cent.
Condominiums
The Benchmark price for a Fraser Valley condominium at the end of April was $447,500. The high and low extremities of this average were South Surrey/White Rock at $525,100 and Mission at $346,300. Closest to the Benchmark on the higher side were Langley at $453,000, a month’s increase of 1.9 per cent; Surrey at $456,200, a month’s increase of 0.9 per cent; and Cloverdale at $509,000, a month’s increase of 0.4 per cent. On the lower side of the Benchmark were North Surrey at $432,600, a month’s increase of 1.8 per cent; North Delta at $424,500, a month’s decrease of 0.4 per cent; and Abbotsford at $346,600, a month’s increase of 3.0 per cent.
Thanks for reading!
Sibo Zhang, REALTOR®