I have been showing you the dramatic effect since the middle of last year of government measures which began three years ago to cool the Vancouver residential market. There can be no doubt that the various taxes and stricter mortgage rules have been achieving their intended purpose, which was to reverse the market’s rapidly escalating prices in order to maintain a more affordable level of home ownership. As regular readers of this newsletter have seen, prices have been declining across for all residential property types typically about 0.5 to 1.0 per cent each month since last July.
At the same time, new monthly listings have continued to be quite plentiful, and the combined effect has created a strong buyer’s market. However, whenever social policy, no matter how well intended, alters market activity, other consequences can follow. This was the case raised this month by the Real Estate Board of Greater Vancouver. The number of home purchases has reached a low not seen for over three decades. At the end of March, home sales were down 31.4 per cent from one year earlier; down 46.3 per cent from ten years ago; and down 16.4 per cent from one month ago.
The concern raised by the Real Estate Board is that demand has been suppressed, not eliminated, and the bigger problem is that demand is not aligning with our economy as expected. In other words, it is thought that many prospective buyers are not buying at this time. Certainly, the statistics are correct, but I am not attributing this phenomenon entirely to social policy measures. Most of my clients are still focused on affordability, and I would encourage prospective buyers to take advantage of the many excellent opportunities in the current market. Below is my monthly selection of comparative benchmarks in areas across Metro Vancouver where you can see the monthly price change for whatever property type you are seeking.
Detached Homes
The benchmark price for a single-family detached home in Greater Vancouver at the end of March was $1,437,100, a decrease of 0.4 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3.026,300 and the Sunshine Coast at $604,600. (Note I include the Sunshine Coast only as a factor in the average, but do not report on housing prices in this area because it is to far away for my clients). The three municipalities closest to the benchmark on the higher side of the average were: North Vancouver at $1,502,600, an increase of 0.7 per cent from the preceding month; Burnaby South at $1,545,200, an increase of 0.2 per cent from the preceding month; and Richmond at $1,546,500, no change from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $1,411,700, an increase of 0.8 per cent from the preceding month; Port Moody at $1,402,500, a decrease of 0.1 per cent from the preceding month; and Vancouver East at $1,390,700, a decrease of 1.6 per cent from the preceding month.
Townhouses
The benchmark price for a townhouse in Greater Vancouver at the end of March was $783,600, a decrease of 0.7 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,184,500 and Maple Ridge at $534,200. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $791,500, a decrease of 0.6 per cent from the preceding month; Vancouver East at $821,300, a decrease of 0.3 per cent from the preceding month; and North Vancouver at $952,700, a decrease of 0.4 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South at $779,500, a decrease of 3.5 per cent from the preceding month; Ladner at $732,700, an increase of 0.7 per cent from the preceding month; and Tsawwassen at $705,000, an increase of 0.3 per cent from the preceding month.
Condominiums
The benchmark price for a condominium in Greater Vancouver at the end of March was $656,900, a decrease of 0.5 per cent from the preceding month. The extremities of this average were West Vancouver at $1,116,200 and Maple Ridge at $352,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $681,400, a decrease of 1.2 per cent from the preceding month; Burnaby East at $722,500, an increase of 0.5 per cent from the preceding month; and Vancouver West (not West Vancouver) at $769,200, a decrease of 1.9 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $653,400, a decrease of 1.0 per cent from the preceding month; Port Moody at $635,200, an increase of 2.0 per cent from the preceding month; and Burnaby North at $603,900, an increase of 0.5 per cent from the preceding month.
I am here to help you! Please let me know how I can assist you. If you are interested in buying, I can provide you with more detailed market information on your desired region and property type. I am also well experienced in finance and can assist you with your mortgage planning. In the event that you are thinking about listing, I can advise you on the optimal price range for your property with comparisons to other recent and historical sales in your neighborhood. And for anyone contemplating renovations, I have an excellent list of reliable, quality tradespeople at affordable rates.
Thanks for reading!
Please contact me for more information.
604-779-7992
sibo.zhang@gmail.com
Sibo Zhang