With the Bank of Canada’s recent announcement of an interest rate rise of 0.25 per cent, we are already seeing some commercial banks raise their prime mortgage rates. This is not a surprise and is in fact the fourth such interest rate increase by the Bank of Canada in the last 12 months. For anyone with a variable rate mortgage, their monthly payments will increase accordingly. For those who have not yet negotiated a mortgage and were hoping to do so soon, the rate will be slightly higher. But the effect of these rate increases is not all negative.
METRO VANCOUVER
I reported last month, various factors including higher interest rates and stricter mortgage requirements appear to be dampening demand for home sales in Metro Vancouver, and the latest figures show a decline in sales activities is continuing. The upside is that for prospective home buyers, the inventory of available homes at the end of June was at a three-year high. At the end of June, the total number of homes listed for sale in Metro Vancouver was 11,947, of which over 5,000 were listed in June alone. Yet, sales at the end of last month were close to 30 per cent below the ten-year average. So, I am encouraging anyone who is seriously looking for a home to take advantage of the big selection on the market now. With the reduced demand, you are less likely to get into a bidding war for a property you want. In fact, the overall Benchmark price of $1.093,600 for a residential property in Metro Vancouver at the end of June remained unchanged from the previous month. Anyone who has been watching prices escalate for several years will recognize the significance of the current price stability. It is a buyer’s market currently. Below I have selected areas for each of property type which are closest to the Metro benchmark on both the higher and lower sides of this average.
Detached Properties
The benchmark price for a detached home in Metro Vancouver at the end of June was $1,598,200, a decrease of 0.6 per cent from the preceding May. This benchmark average was made of benchmark prices between the extremities of the Sunshine Coast at $628,000 and Vancouver West at $3,392,500. (Note this is not West Vancouver which was at $2,944,900.) I have selected three areas which are closest on both sides for the Metro benchmark. On the higher side of the benchmark were: Richmond at $1,648,600, a decrease of 1.0 per cent from the preceding month; North Vancouver at $1,683,680, a decrease of 1.5 per cent from the preceding month; and Burnaby South at $1,712,400, an increase of 2.5 per cent from the preceding month. Closest to the Metro Benchmark on the lower side of the average were: Port Moody at $1,551,900, an increase of 1.5 per cent from the preceding May; Vancouver East at $1,541,400, a decrease of 0.1 per cent from the preceding May; and Burnaby North at $1,538,900, a decrease of 2.3 per cent from the preceding month.
Townhouses
The benchmark price for a townhouse in Metro Vancouver at the end of June was $859,800, which was unchanged from the preceding month. This benchmark average was made of benchmark prices between the extremities of Maple Ridge at $574,300 and West Vancouver at $1,303,600. I have selected three areas which are closest on both sides for the Metro benchmark. (I have excluded from this selection the areas of Squamish and Whistler which are too far out for most of my clients.) On the higher side of the benchmark were: Vancouver East at $923,400, a decrease of 0.3 per cent from the preceding May; North Vancouver at $1,049,900, an increase of 1.4 per cent from the preceding May; and Vancouver West at $1,303,600, a decrease of 0.1 per cent from the preceding May. Closest to the Metro benchmark on the lower side of the average were: Burnaby South at $856,400, an increase of 1.8 per cent from the preceding May; Richmond at $854,800, an increase of 1.0 per cent from the preceding May; and Ladner at $778,000, a decrease of 1.2 per cent from the preceding May.
Condominiums
The benchmark price for a condominium in Metro Vancouver at the end of June was $704,200, an increase of 0.4 per cent from the preceding May. This benchmark average was made of benchmark prices between the extremities of Pitt Meadows at $480,300 and West Vancouver at $1,286,500. I have selected three areas which are closest on both sides for the Metro benchmark. On the higher side of the average were: Burnaby South at $737,000 and increase of 1.1 per cent from the preceding May; Vancouver West at $842,600, a decrease of 0.3 per cent from the preceding May; and West Vancouver at $1,286,500, an increase of 0.5 per cent from the preceding May. Closest to the Metro benchmark on the lower side of the average were: Burnaby East at $701,400, a decrease of 2.0 per cent from the preceding May; Port Moody at $699,200, an increase of 0.9 per cent from the preceding May; and Richmond at $683,800, an increase of 2.0 per cent from the preceding May.
FRASER VALLEY
As it the case in Metro Vancouver, the inventory of residential properties in the Fraser Valley continued to increase. The total number of listings across all property types rose to 7,141 at the end of June, an increase of 6 per cent from the preceding May, providing an excellent selection for prospective home buyers this summer. If you haven’t yet found the residence you’ve been looking for in the Valley, then I strongly recommend you look at some newly listed properties this month. There were over 3,100 new listings in June alone. Prices are holding steady at present with a slight decrease in some cases – the average across all property types at the end of June decreased 4.9 per cent from the preceding May — so if you eager to buy this appears to be one a favourable time for buyers. Sales activity is still brisk, however, and properties can sell quite soon after they are listed. Last month the average time for a single family detached home was on the market in the Fraser Valley was 26 days; townhouses sold on average after 19 days, and condominiums after 21 days. As has been the case for some time, townhouses and condominiums make up just over 50 per cent of all sales, but detached properties are still a favourite for many families who want to enjoy Valley life with their children. Below is my selection this month for the three property types with benchmark prices at then end June in areas where I think you will find some excellent value.
Detached Homes
The benchmark price for a detached property in the Fraser Valley at the end June was $1, 018,900, a 0.2 per cent decrease from the preceding May. The extremities of this average were $1,073,700 in Langley and $692,300 in Mission. Here is my selection for the three closest benchmark prices on both the higher and lower sides of this Valley benchmark. On the higher side of the average were: Cloverdale at $1,036,600, a 1.1 per cent decrease from the preceding May; Surrey at $1,53,600, a 0.3 per cent increase from the preceding May; and Langley at $1,73,700, a 0.4 per cent increase from the preceding May. Closest to Fraser Valley benchmark on the lower side of the average were: North Surrey at $998,900, a 0.5 per cent decrease from the preceding May; North Delta at $957,800, a 0.1 per cent decrease from the preceding May; and $840,700, a 0.5 per cent increase from the preceding May.
Townhouses
The benchmark price for a townhouse in the Fraser Valley at the end of June was $558,000, an increase of 0.4 per cent from the preceding May. The extremities of this average were $680,800 in South Surrey/White Rock and $409,400 in Abbotsford. Here is my selection of the three closest benchmark prices on both the higher and lower sides of this Valley benchmark. On the higher side of the average were: North Surrey at $589,400, a decrease of 0.7 per cent from the preceding May; Surrey at $598,000, an increase of 0.9 per cent from the preceding May; and Cloverdale at $618,300, an increase of 0.2 per cent from the preceding May. Closest to the Valley benchmark on the lower side of the average were: Langley at $527,900, a decrease of 0.2 per cent from the preceding May; Mission at $441,800, a decrease of 1.8 per cent from the preceding May; and Abbotsford at $409,400, an increase of 3.5 per cent from the preceding May.
Condominiums
The benchmark price for condominium in the Fraser Valley at the end of June was $453,500, an increase of 0.1 per cent from the preceding May. The extremities of this average were $516,000 in South Surrey/White Rock and $356,800 in Abbotsford. Here is my selection of the three closest benchmark prices on both the higher and lower sides of this Valley benchmark. On the higher side of the average were: Surrey at $464,300, a decrease of 0.5 per cent from the preceding May; Cloverdale at $513,000, an increase of 0.6 per cent from the preceding May; and South Surrey/White Rock at $516,000, a decrease of 1.4 per cent from the preceding May. Closest to the Valley benchmark on the lower side of the average were: Langley at $448,500, a decrease of 1.2 per cent from the preceding May; North Surrey at $443,800, an increase of 1.0 per cent from the preceding May; and North Delta at $433,200, a decrease of 0.1 per cent.
The summer weather is now making it enjoyable to take a drive around the community where you would like to locate your new residence. I encourage you to view some of the open houses that you see and compare their features to what find properties priced close to the benchmark prices I have mentioned above. Remember that a benchmark price is an average based on home with similar characteristics, so be sure to note any features that you really want in your new home. I am always happy to provide you with more information in any property type in whatever area you are interested in, so please feel free to give me a call, whether you are just curious about the market or are at the stage of planning on buying or listing.
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