New year sees prices moving upwards: combined residential benchmark rises over $1-million

Metro Vancouver

With both a new year and a new decade underway, many people will want to take notice of a significant event that has occurred in the Greater Vancouver real estate market. At the beginning of January, the combined benchmark price for a residential property rose above the 1-million mark. At $1,001,900, it is nearly $12,000 higher than at the end of September 2019. This is a substantial increase in the last quarter of 2019, yet it is worthwhile noting that it is still almost $18,000 less than in mid-2017, when it first surpassed the $1-million mark before government measures took effect in 2018. In short, I think we can now confidently expect continued upward prices, although at a more gradual rate than the pre-2017 upward price spiral. At the same, we are closing the gap relatively quickly to where prices were three years ago. If you have been delaying a decision to make a purchase offer, there is good reason to make it now. Another quarter at the same rate of increase will add another $10,000 to the benchmark price, and this may not be the only factor. Home listings can play a significant role.

It is important to watch the supply of homes on the market. Generally, there has been a decline in new listings over the past three years. While home hunters have no worries of finding lots of available homes to choose from, the decline in total inventory may start having an upward push on prices if demand continues to rise. At the end of 2019, the total of residential listings across all property types in Greater Vancouver reached close to 52,000. However, this was more than a 3.0 per cent decrease from 2018, and a 5.0 per cent decrease from 2017. Currently, inventory levels still offer an excellent variety to choose from in each of the residential categories. At the end of December 2019, the number of homes listed for sale in Metro Vancouver was over 8,600. Please take a look below at the comparative prices in each of the property type across Greater Vancouver that I have selected for you. This will allow to see the price changes over one month for areas closest to the benchmark price. If you have questions about any particular property type or municipal area, please don’t hesitate to give me a call.

Detached Homes

The benchmark price for a single-family detached home in Greater Vancouver at the end of December 2019 was $1,423,500, an increase of 0.6 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $2,920,800 and Sunshine Coast at $574,600. (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: Burnaby South at $1,494,500, an increase of 0.6 per cent from the preceding month; Richmond at $1,495,400, a decrease of 0.3 per cent from the preceding month; and North Vancouver at $1,513,300, an increase of 1.1 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $1,399,800, an increase of 0.3 per cent from the preceding month; Vancouver East at $1,390,100, an increase of 0.9 per cent from the preceding month; and Burnaby North at $1,389,000, an increase of 0.6 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in Greater Vancouver at the end of December 2019 was $778,400, an increase of 0.7 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,135,800 and Maple Ridge at $533,800. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $880,800, an increase of 2.3 per cent from the preceding month; North Vancouver at $928,500, a decrease of 0.9 per cent from the preceding month; and Vancouver West (not West Vancouver) at $1,135,800, an increase of 0.2 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond, at $770,300, an increase of 0.5 per cent from the preceding month; Burnaby South at $762,600, a decrease of 0.9 per cent from the preceding month; and Burnaby North at $724,200, a decrease of 0.6 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in Greater Vancouver at the end of December 2019 was $656,700, an increase of 0.9 per cent from the preceding month. The extremities of this average were West Vancouver at $1,009,900 and Maple Ridge at $347,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $715,000, a decrease of 0.4 per cent from the preceding month; Vancouver West at $760,300, an increase of 1.3 per cent from the preceding month; and West Vancouver at $1.009.900, a decrease of 1.3 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South at $652,000, an increase of 0.7 per cent from the preceding month; Richmond at $630,200, an increase of 0.5 per cent from the preceding month; and Port Moody at $626,800, a decrease of 0.5 per cent from the preceding month.

Best Wishes for a happy and prosperous New Year!

This is a time when many new year’s resolutions are about doing something around your home, or perhaps even doing something with your home. If you are planning to renovate, build a deck, or decorate your home’s interior, I can help you find reputable and reliable tradespeople. If you are planning a home purchase, I can provide financial expertise on your mortgage planning. I truly enjoy being able to help my clients in any way I can.

Please don’t hesitate to give me a call. (604) 779-7992

Thanks for reading!

Sibo Zhang, REALTOR®