Stable market conditions across all property types as summer draws to an end

METRO VANCOUVER

Where’s the market at now? That’s a question I’ve been hearing lately. It tells me people are aware of the dramatic price drop on homes for over a year. Whether someone has been waiting to list or buy, they seem to have sense that it’s now time to act – and I have to agree! I’ve been tracking the monthly price changes for you here in a period of market cooling since the all-time high in 2017. Of course, prospective buyers were reluctant to make an offer while the price trend has been downward. They are always wondering if the bottom has arrived, and will prices start moving up again?

It’s easy to fall into this kind of attitude, but it’s important to remember that there are multiple factors that make up price movements. To be practical, we can narrow our considerations to the assumptions that the downward trend we’ve seen in the past 15 months was due to stricter mortgage rules, with additional taxes also playing a role. However, the real estate market is made up of buyers and sellers who want to – indeed, need to – have transactions. And in a mature market area like Metro Vancouver, we can reasonably expect to return to what we call typical market activity.

Our two past summer months reflect what I would call this kind of typical activity, and even with some monthly decline in both sales and listings last month, I would venture to say that over the past two summer months, activity across Metro Vancouver appears to have returned to normal.

The combined benchmark price for a residential property in Greater Vancouver at the end of August was $990,300, a decrease of 0.2 per cent from July. This is too small a decrease to suggest an ongoing downward trend, and it should be noted that this benchmark is still below the $1-million mark which surpassed by the majority of single-family detached homes in Metro Vancouver’s various areas. Looking at the total inventory of homes on the market at the end of August, we have a plentiful supply at 13,396, which is over 13 per cent higher than one year ago. While the total sales in August were down 5.9 per cent compared with July, this cannot itself be construed as ongoing downward movement. It’s important to note that the number of August sales was actually close to 16 per cent higher than they were for the same month a year ago.

In short, if you want to make a sale or a purchase, there’s no time like the present. Take a look at the price comparisons I have selected for you below.

Detached Homes 

The benchmark price for a single-family detached home in Greater Vancouver at the end of August was $$1,406,700, a decrease of 0.7 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $2,880,800 and Sunshine Coast at $584,600. (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 too far away for my clients.) The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $1,420,900, a decrease of 1.5 per cent form the preceding month; Richmond at $1,458,800, a decrease of 1.5 per cent from the preceding month; and Burnaby South at $1,467,900, a decrease of 0.6 per cent from the preceding month. The three municipalities closest to the benchmark on lower side of the average were: Burnaby North at $1,375,500, an increase of 0.2 per cent from the preceding month; Vancouver East at $1,346,500, a decrease of 0.5 per cent from the preceding month; and Burnaby East at $1,165,800, a decrease of 1.4 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in Greater Vancouver at the end of August was $771,900, an increase of 0.2 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,115,100 and Maple Ridge at $522,800. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $774,900, an increase of 0.5 per cent from the preceding month; Vancouver East at $838,100, a decrease of 1.1 per cent from the preceding month; and North Vancouver at $960, 200, an increase of 1.7 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South at $767,000, an increase of 0.8 per cent from the preceding month; Burnaby North at $721,500, a decrease of 0.2 per cent from the preceding month; and New Westminster at $713,000, a decrease of 0.1 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in Greater Vancouver at the end of August was $654,000, an increase of 0.1 per cent from the preceding month. The extremities of the average were West Vancouver at $1,062,100 and Maple Ridge at $351,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $700,700, a decrease of 2.9 per cent from the preceding month; Vancouver West at $756,000, an increase of 0.5 per cent from the preceding month; and West Vancouver at $1,062,100, a decrease of 2.2 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South at $648,500, a decrease of 0.8 per cent from the preceding month; Richmond at $626,700, an increase of 0.7 per cent from the preceding month; and Port Moody at $622,200, a decrease of 1.0 per cent from the preceding month.

Other ways I can help

I am here to help you, whatever your housing requirements, I bring experience in banking and finance to assist you in your mortgage planning. If you are thinking about listing your home for sale, I can also advise you on the optimal price for the current market conditions. And in case you are thinking about home renovations that will increase your home value, I can provide a comparative analysis on properties in your neighborhood. I can also recommend reputable tradespeople who do excellent work at fair rates. Please don’t hesitate to call me at (604) 779-7992. It gives me great pleasure to help my clients.

Thanks for reading!

Sibo Zhang, REALTOR®