METRO VANCOUVER
It appears that government measures to cool the Vancouver housing market are having some effect. You have no doubt read about the foreign home buyers tax – which incidentally is being challenged in court case launched in British Columbia right now – as well a proposed surtax on the highest value homes, and other legislated taxes on second homes and vacant properties. I have covered with some detail these issues in previous newsletters and blogs, so I won’t go back into them now except to say if you would like to discuss them, I am happy to have you give me a call. The situation in the greater Vancouver housing market that I want to emphasize now is that the current demand for housing has dropped considerably this month, and at the same the supply of properties listed for sale has increased significantly, so in short, it’s a great time to go shopping for a home. Using the numbers at the end of May, the 6,375 properties newly listed in Metro Vancouver is close to a 10 per cent increase over the April listings, which brought the total supply of available residences in Metro Vancouver to 11,292 and more than the total inventory in April this year. By itself, this would not be as significant as it is with the current decline in demand. Together these two factors make for better buying conditions that we have seen for some time in this market, with the selection of homes now at its highest level in the past two years.
Last month’s sales across all property types continue to show condominiums and townhouses make up more than 70 per cent of purchases, specifically: 41.7 per cent for condominiums; 30.8 per cent for townhouses; and 14.7 per cent for detached homes. The benchmark price for all residential properties in Metro Vancouver at the end of May was $1,094,000, a slight increase of 0.2 per cent over April, but it’s worth noting that it was 11.5 per cent higher than this time year ago. While the Metro Vancouver market will remain robust because of the city is considered to be a highly desirable place to live, prices will in probably continue to rise overall. That’s why a Vancouver home is an excellent investment for the long term, and why the current decline in demand can work to your advantage as a buyer. From the seller’s point of view, a competitive price will see your property sold sooner, and the current increase in overall selection will be attracting more shoppers at this time.
Here is a breakdown of properties types and their benchmark related prices for my selection of areas where you stand a good chance of finding an appealing residential property in Metro Vancouver this month.
Detached Homes
The benchmark price for single family detached homes in Metro Vancouver at the end of May was $1,608,000, an increase of 0.2 per cent over one month. Notable given the government measures mentioned above, sales of detached properties in May showed a 40.2 per cent decrease from a year earlier. The current benchmark price is an average calculated with price extremities of 3,430,000 in Vancouver West and $1,529,200 in Port Moody. The areas closest to the benchmark price on its higher side were: Richmond with a benchmark price at $1,665,100, a decrease from the previous month of 1.2 per cent; Burnaby South with a benchmark price at $1,671,100, a decrease of 0.3 per cent from the previous month; and West Vancouver with a Benchmark price of $3,020,100, a decrease of 1.1 per cent from the previous month. Closest to Metro Benchmark on the lower side were: North Burnaby with a benchmark of $1,575,100, a decrease of 1.3 per cent from the precious month; Vancouver East with a benchmark of $1,543,600, no change from the previous month; and Port Moody with a Benchmark of $1,529,200, an increase of 1.3 per cent over the previous month. It is noteworthy that that all but one of the monthly changes decreases over the benchmark in May this year.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of May was $859,500, an increase of 0.6 per cent over the previous month. This average was made up of prices ranging from a high of $1,304,500 in Vancouver West to a low of $580,500 in Pitt Meadows. I have excluded the areas of Whistler and Squamish which are too far out for my clients. Here again is my selection of the areas closest to the Metro Benchmark on it higher and lower sides. The closest areas on the higher side were: Vancouver East with a benchmark of $925,800, a decrease of 0.8 per cent from the previous month; North Vancouver with a benchmark of $1.035,500, an increase of 0.4 per cent over the previous month; and Vancouver West with a benchmark of $1,304,800, an increase of 0.2 per cent over the previous month. On the lower side, the benchmark for Richmond was $846,300, an increase of 0.9 per cent over the previous month; Burnaby South with a benchmark of $841,000, an increase of 0.7 per cent over the previous month; and Tsawwassen with a benchmark of $507,500, a decrease of 0.7 per cent from the previous month.
Condominiums
The benchmark price for condominium in Metro Vancouver at the end of May was $701,700, an increase of 0.1 per cent over the previous month. This average was made up of prices ranging from a high of $!,280,600 in West Vancouver to a low of $325,500 in Maple Ridge. Here is my selection of the areas closest to the Metro benchmark on the higher and lower sides. On the higher side were: Burnaby East at $715,900, a decrease of 2.1 per cent from the previous month; Burnaby South with a benchmark of 4729,000, an increase of 1.8 per cent over the previous month; and Vancouver West with benchmark of $846,400, an increase of 0.4 per cent over the previous month. On the lower side, the benchmark in Port Moody was 693,000, an increase of 0.1 per cent; Richmond had benchmark of $670,700, a decrease of 2.0 per cent; and Burnaby North had a benchmark of $650,200, an increase of 1.8 per cent.
FRASER VALLEY
The Fraser Valley continues to show strong sales, and once again townhouses and condominiums represented over 50 per cent of all sales in the month of May. Of the Valley’s 1,728 sales across all property types, townhouse sales reached 417, and condominiums reached 516. Buyers now have the highest selection to choose from since 2015, with 3,965 new listings bringing the total inventory to 6,736 at the end of May. The Valley sees a lot a first time home buyers, many singles looking for a condominium or a young couple wanting a townhouse to as their first home. It is a market where listed properties do not stay on the market very long, so I encourage prospective home owners to take a look at the available properties without delay. While the current inventory of homes across all property types is high, the summer will bring home seekers out with the nice weather. The combined Fraser Valley benchmark price for all property types at the end of May was 41,006200, a one month price increase of 0.5 per cent. Below I provide you with a breakdown of benchmark prices for each type of property in the selected areas where averages are closest on the higher and lower sides.
Detached Homes
The benchmark price for a single family detached home in the Fraser Valley at the end of May was $1,020800, an increase of 1.2 per cent over the previous month. This average price was made up of prices ranging from a high of $1,487,00 in South Surrey/White Rock to a low of $691,200 in Mission. Here is my selection of areas closest to the Valley benchmark on its higher and lower sides. On the higher side were: Cloverdale with a benchmark price of $1.047,700, an increase of 0.1 per cent over the previous month; Surrey with a benchmark price of $1,051,000, an increase of 1.0 per cent over the previous month; and Langley with a benchmark price of $1,069,300, an increase of 2.1 per cent over the previous month. On the lower side were: North Surrey with a benchmark of $1,003,500, an increase of 1.6 per cent over the previous month; North Delta with a benchmark of $958,500, an increase of 1.5 per cent over the previous month; and Abbotsford with a benchmark of $836,600, an increase of 14 per cent over the previous month.
Townhouses
The benchmark price for a townhouse in the Fraser Valley at the end of May was $555,500, an increase of 1.0 per cent over the previous month. This average was made up of prices ranging from a high of $690,700 in South Surrey/White Rock to a low of $395,400 in Abbotsford. Areas closest to the benchmark on the higher side of the Valley benchmark were: Surrey at $592,600, an increase of 1.3 per cent over the previous month; North Surrey at $593,500, an increase of 1.6 per cent over the previous month; and North Delta at $610,000, an increase of 0.9 per cent over the previous month. On the lower side of the Valley benchmark, the closest benchmarks were: Langley at $529,000 an increase of 0.9 per cent; Mission at $449,900, an increase of 0.1 per cent; and Abbotsford at $395,400, an increase of 1.4 per cent over the previous month.
Condominiums
The benchmark price for a condominium in the Fraser Valley at the end of May was $452,900, an increase of 1.2 per cent over the previous month. This average was made up of prices ranging from a high of $523,300 in South Surrey/White Rock to a low of $353,400 in Mission. Areas closest to the higher side of the Valley benchmark were: Langley at $454,000, an increase of 0,2 per cent over the previous month; Surrey at $466,500, an increase of 2.3 per cent over the previous month; and South Surrey/White Rock at $523,300, a decrease of 0.3 per cent from the previous month. On the lower side of the Valley benchmark, the closest benchmarks were: North Surrey at $439,500, an increase of 1.6 per cent over the previous month; North Delta at $433,400, an increase of 2.1 per cent over the previous month; and Mission at $364,000, an increase of 5.1 per cent over the preceding month.
I hope the above survey of prices in the areas of Metro Vancouver and the Fraser Valley serves as a good guide whether you are thinking of buying or selling a property at this time. If you would like to learn more about prices in any other areas of Greater Vancouver, I will be happy to help you find a property that fits your mortgage range. Please feel free to give me a call at 604-779-7992.
Thanks for reading!
Sibo Zhang, REALTOR®