Metro Vancouver market statistics

July Market Update for Metro Vancouver

Composite residential benchmark price drops below $1-million – back to 2017 mark.
Readers may recall a contest in my newsletter in July 2017. The composite benchmark price for residential properties in Greater Vancouver had been moving upwards – getting close to the $1-million mark for a couple months. I offered a prize to anyone who could guess which month it would surpass $1-million. That happened by the end of that July when it reached $1,019,400. It had hit $998,700 in the preceding June, a jump of $92,000 over $906,700 at the beginning of May 2017. I referred then to the $1-million price as an important psychological threshold. I noticed a shift after that with clients choosing townhouses or condominiums instead of detached homes, which were becoming increasingly beyond the budgets of many customers. So, just two years later, the composite benchmark price at the end of June 2019 is again below $1-million – and of particular note – at $998,700 it is exactly where it was two years ago!

I wouldn’t put too much stock in the adage that what goes up, must come down. While the current decline in prices might seem to confirm this saying, when it comes to real estate it’s better to understand the forces behind the price movement. For this I return again to the market cooling measures adopted by the federal and provincial governments – stiffer mortgage qualification and additional taxes have been effective in bring down prices overall. The steady price decline for over a year has prompted many homeowners to list their property for sale in the hope of getting the best price before a further decline. This has resulted in a great selection of homes to choose from (14,968 total inventory at the end of June), but a lot of prospective buyers are still waiting to see if prices go lower. I understand this decision predicament. However, I urge buyer clients to weigh their priorities carefully. If you are eager to get into a home, don’t gamble unnecessarily by trying to beat the market. With the psychological threshold price now below $1-million again, demand can increase rapidly just as it did in 2017. This is an excellent time to find a great home for a price that is again in an affordable range. Take at look at the comparative benchmark prices I have selected for you across each of property types below.

Detached Homes
The benchmark price for a single-family detached home in Greater Vancouver at the end of June was $1,423,500, an increase of 0.1 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $2,912,000 and Sunshine Coast at $599,100. (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: Port Moody at $1,427,400, an increase of 1.5 per cent from the preceding month; Richmond at $1,484,600, a decrease of 1.3 per cent from the preceding month; Burnaby South at $1,496,100, a decrease of 0.8 per cent from the preceding month. The three municipalities closest to benchmark on the lower side of the average were: Burnaby North at $$1,399,800, a decrease of 0.6 per cent from the preceding month; Vancouver East at $1,350,100, an increase of 0.2 per cent from the preceding month.

Townhouses
The benchmark price for townhouse in Greater Vancouver at the end of June was $774,700, a decrease of 1.4 per cent from the preceding month. The extremities of this average were Vancouver West at $1,125,800 and Maple Ridge at $529,900. The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $779,200, an increase of 0.3 per cent from the preceding month; Vancouver East at $861,500, a decrease of 1.4 per cent from the preceding month, Note: I excluded Whistler here at $881,000, because it is to far way for my clients); and North Vancouver at $946,600, a decrease of 0.7 per cent from the preceding month. The three municipalities closest to benchmark on the lower side of the average were: Burnaby South at $762,600, a decrease of 2,4 per cent from the preceding month; Burnaby North at $725,500, a decrease of 0.7 per cent from the preceding month; and New Westminster at $721,500, an increase of 0.9 per cent from the preceding month.

Condominiums
The benchmark price for a condominium in Greater Vancouver at the end of June was $654,700, a decrease of 1.4 per cent from the preceding month. The extremities of this average were West Vancouver at $1.034, 500 and Maple Ridge at $355,200. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $666,200, a decrease of 1.5 per cent from the preceding month; Burnaby East at $736,100, a decrease of 1.6 per cent from the preceding month; and Vancouver West (not West Vancouver) at $744,300, a decrease of 1.9 per cent form the preceding month. The three municipalities closest to benchmark on the lower side of the average were: Richmond at $628,500, a decrease of 1.5 per cent from the preceding month; Port Moody at $619,800, a decrease of 1.7 per cent from the preceding month; and Burnaby North at $607,800, a decrease of 1.2 per cent from the preceding month.

I can help in other ways
I am active in many areas of real estate so please don’t hesitate to ask me if there are other ways in which I can help you. My experience in banking and finance will assist you in your mortgage planning. Or you if are already settled in your home and are thinking of renovations, I can recommend reputable tradespeople who provide quality work at a reasonable rates. It gives me great pleasure to help my clients in any way I can.

Please contact me with any questions you may have.

Thanks for reading!

Sibo Zhang