Spring has arrived and already there’s a noticeable increase in home shoppers actively engaged in visiting open houses across Metro Vancouver. While this is a normal uptick at this time of year, it is expected to be an especially active season for reasons other than enjoyable Spring weather. New rules easing mortgage stress tests, and the recent Bank of Canada prime rate reduction will encourage many people take advantage of this highly advantageous period make a home purchase. This past February alone saw a 37 per cent increase in Metro Vancouver home sales over the preceding month. I strongly advise serious home seekers to move quickly. I will make extra time in my days to help you at this time. There is some upward pressure on prices at present because new listings have not been keeping up with demand, but I would still describe the overall market as having stable prices with moderate increases each month. The ratio of sales-to-active listings in Metro Vancouver in February was 23.4 per cent. One rule of thumb is that when this ratio is above 20 per cent, the market experiences upward pressure on prices, which is the situation now. Whether this current upward price trend continues at the same rate, however, may depend on how big a surge we see in sales this Spring. One offsetting factor could be an increase this Spring in new listings. There were slightly more than 4,000 new listings across all property types in Greater Vancouver during the month of February. This was 3.4 per cent increase over new listings in January, so the we can see new listings will need to increase significantly to keep the price rise in check. With the mortgage financing incentives in place right now, a large sales increase could push prices higher even faster.
The composite benchmark price for residential properties in Greater Vancouver at the end of February was $1,020,600, an increase of 1.2 per cent from the preceding month. While this average is over the $1-million mark for the whole region, it has shown a reasonably small increase of 2.7 per cent over the last since months. The biggest selling property type in February was condominiums for which sales have risen 3.6 per cent in the past six months. This was followed by a six-month sales increase in February of 1.9 per cent in detached homes; and for townhouses a six-month sale increase of 1.7 per cent. I want to therefore point out to potential sellers in any property category that the current market conditions make it an opportune time to make a relatively quick sale. If you have been thinking about listing, give me a call and I can help you with an optimal pricing strategy for your property type and area. Below I have my monthly comparison of month-over-month benchmark prices for all property types across Greater Vancouver. You will still find some monthly fluctuations that can give you a guide to excellent opportunities in specific areas.
Detached Homes
The benchmark price for a single-family detached home in Greater Vancouver at the end of February 2020 was $1,433,900, an increase of 0.2 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $2,914,000 and Maple Ridge at $824,900. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $1,477,800, an decrease of 1.0 per cent from the preceding month; Richmond at $1,509,900, an increase of 0.4 per cent from the preceding month; and North Vancouver at $1,546,400, an increase of 0.6 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $1,418,400, an increase of 0.1 per cent from the preceding month; Port Moody at $1,411,700, an increase of 0.9 per cent from the preceding month; and Vancouver East at $1,407,700, no change from the preceding month.
Townhouses
The benchmark price for a townhouse in Greater Vancouver at the end of February 2020 was
$785,000, an increase of 0.3 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,131,400 and Pitt Meadows at $613,100. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $903,900, no change from the preceding month; North Vancouver at $951,100, an increase of 0.4 per cent from the preceding month; and Vancouver West (not West Vancouver) at $1,131,400, a decrease of 1.4 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond, at $784,000, an increase of 1.1 per cent from the preceding month; Burnaby South at $773,400, an increase of 0.7 per cent from the preceding month; and New Westminster at $743,800, an increase of 1.5 per cent from the preceding month.
Condominiums
The benchmark price for a condominium in Greater Vancouver at the end of February 2020 was $677,200, an increase of 2.1 per cent from the preceding month. The extremities of this average were West Vancouver at $1,013,900 and Maple Ridge at $355,900. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $678,200, an increase of 2.5 per cent from the preceding month; Burnaby East $733,800, an increase of 2.7 per cent from the preceding month; and West Vancouver (not West Vancouver) at $796,100, an increase of 2.6 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $647,200, an increase of 1.0 per cent from the preceding month; Richmond at $640,700, an increase of 1.0 per cent from the preceding month; and North Vancouver at $572,000, an increase of 2.5 per cent from the preceding month.
I can help you understand mortgages and stress tests
With new mortgage stress test rules in place, you will now find it easier to qualify for a mortgage. The new criteria for will be a big help to many potential buyers who were unable to obtain a mortgage under the previous test. There has also been a recent reduction to Canada’s prime lending rate. In turn, this has also reduced interest rates on mortgages. Please feel free to call me if you would like to find out how to qualify for a mortgage at this opportune time make a home purchase. I have professional experience in banking and finance and will gladly guide you through your mortgage requirements.
Please don’t hesitate to give me a call. (604) 779-7992
Thanks for reading!
Sibo Zhang, REALTOR®
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