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Sales and Listing Report for October 2022

“There is always a ray of light at the end of every dark tunnel.”

Tink

Positive signs emerge as buyers’ market strengthens

Highlights of the October Report

  • Lowest benchmark home price: New Westminster at $809,800

  • Highest number of Greater Vancouver sales since June 2022

  • Benchmark home price is down 9.2% from six months ago

  • North Vancouver average home prices up 8.5% from September

  • West Side detached house sales highest in six months

  • Immigration surge will drive housing demand higher

The October housing market in Metro Vancouver revealed an economic truism: ‘the cure for higher prices is higher prices’ and that cure is bringing local housing sales and starts back to balance after a rollercoaster year.

This has swung to a buyers’ market that is gaining momentum and may soon appear irresistible.

Cast your memory back to the misty past of 9 months ago, when the benchmark detached house price in Greater Vancouver was $2.04 million, multiple offers were more common than not, property sales were cresting over 3,400 a month and monthly new condo starts were running above 650 units.

Higher prices and interest rates changed everything.

By October 2022, the detached house price had fallen to $1.89 million, housing sales were down to 1,903 for the month and multiple offers are less common. New condo starts dropped 30% from February to just 458 in October as builders struggled with soaring land and construction costs. The only number higher is the mortgage rate, which has basically doubled after six increases, the latest on October 26.

We are now seeing the ramifications of higher prices and the news for home buyers is now quite positive.

There are now five Greater Vancouver mainland markets where the overall composite benchmark home price is below $1 million: New Westminster, Burnaby North, Port Coquitlam, Pitt Meadows and Maple Ridge. Six months ago there was 1.

Those seeking to buy a Greater Vancouver home in virtually any market now can expect to pay tens of thousands of dollars less than just a few months ago. The overall benchmark detached house price in October, for example, was $201,500 lower than in May; townhouse prices are $97,500 less expensive; and the benchmark condo apartment price is $52,600 below the level of six months ago.

While home prices have fallen by 9.2% in six months, the average mortgage rate has increased about 3%.

Meanwhile, easing land prices and construction costs promise to bring cancelled or delayed strata projects back to life, likely at lower prices.

Altus Group reports that the average commercial land prices in Metro Vancouver this year have fallen from a high of $4.7 million an acre in the second quarter to $3.3 million in the third quarter, according to preliminary data, which is a dramatic change. Demand for multi-unit residential development land has also fallen with the dollar volume down 50% year-over-year as of mid-2022, to less than $1 billion, while a slowdown in new strata buildings has led to less demand and lower costs for construction materials and labour.

Also, the 50-basis point increase in the Bank of Canada rate on October 26 is a signal that rate increases are slowing and may stop this year. The rate increase was widely expected to be even higher. On October 26,  Bank of Canada governor Tiff Macklem said, ” This tightening phase will draw to a close.”

With Canadian housing sales falling year-over-year and inflation fears easing, we may have seen the last interest rate hike for this year, perhaps even into 2023.

Then we have the rental pressure that may drive more tenants into homeownership and more condo investors into the market.

Right now, due to the continual shortage, average rental prices in Metro Vancouver are the highest in Canada. As one landlord confided recently, there is little incentive to improve rental stock because, without other options, most renters pay what the landlord feels the market can bear. New or renovated one-bedroom apartments in Vancouver are now asking rents of $3,000 per month, which is enough to cover a $600,000 mortgage.

At this rate, it is now, or soon will be, less expensive to buy an apartment than to rent one. This, in turn, will encourage more investors to purchase a condo to place on the rental market, especially if the provincial government, as planned, legislates that all Strata Corporations must allow rentals.

As well, with the federal government announcing that it wants to increase immigration numbers to 500,000 by 2025, the demand for housing in B.C. is only going to grow. In 2023 Canada hopes to see immigration at 465,000, with skilled labour being a focus.

Governments now realize it must work on supply to increase housing – demand side measures just aren’t going to cut it anymore.

What we have today is a leaner and less mean residential market that should draw nimble buyers back into action and allow listings to increase as sellers and developers become more confident. We can thank higher prices earlier this year.

Here is a look at regional markets for October 2022

Greater Vancouver: Total housing sales in October, at 1,923, were 13% higher than a month earlier and the highest for any month since June 2022, yet still down 45% from October 2021. Compared to October 2021, townhome sales are 49% lower, condo sales 46% lower, and detached home sales down 52%. Detached house sales made up 30% of all transactions in October, while townhouses had a 17% share. Apartment sales accounted for the bulk of the market, with 52% of sales. Total sales were 33% below the 10-year average for the month. The overall average (not benchmark) price for all residential properties was $1,231,759. This is down about $110,000 from the peak in February 2022 and approximately $10,000 below the average price in October 2021. (Average prices often give a raw and accurate example of market performance.)  Active listings were at 10,305 at month end compared to 8,492 at that time last year and 10,424 (down 1%) at the end of September. New listings in October were down 5% compared to September 2022, down 0.5% compared to October 2021. Month’s supply of total residential listings is down to 5 month’s supply, considered a balanced market, but leaning towards a buyer’s advantage. October’s sales-to-listings ratio of 47% compared to 39% in September 2022 and 86% in October 2021. What’s really telling is that in October 2018 when sales were at a similar level as this October, new listings were 19% lower this October compared to 2018.

Fraser Valley: The Fraser Valley saw 901 total residential sales in October, down 53.5% from a year earlier, but up a scant 0.4% from September 2022. October ended with a total active inventory of 5,642 properties for sale, up 63.7% compared to October 2021. With a sales-to-active listings ratio of 16 per cent, this is a buyer’s market for the fifth straight month. Benchmark detached house prices are down just 0.8% from a year earlier and off 1.8% from September 2022, at $1,436,400.  At $809,800, the benchmark townhouse price decreased 1.5% compared to September 2022 and increased 7.7% compared to October 2021. Condo apartments sold at a benchmark of $527,900, down 0.5% compared to September 2022, but up 11.5% compared to October 2021.

Note to landowners, including detached house owners and those with small acreages along the new SkyTrain corridor to Langley are seeing record-setting land prices. In October, a one-acre assembly near the planned 152nd Street transit station sold for $6.5 million.

Vancouver Westside: Despite all the angst and hand wringing, a look into the Westside detached housing scene – which, let’s be honest, is Canada’s bellwether market – shows October was a lot better than most would think.  The 73 detached sales in the month represented 50% of the new listings last month – the highest sales-to-listing ratio since February – and the average sold price was $3,494,589. Fairly impressive. Total residential sales in October were 342, down 43% from a year earlier but up 14% from September 2022. Condo apartment sales led the October curve, posting 236 transactions at a benchmark price of $827,700, up 0.7% from September 2022, the first month-to-month price increase in at least 6 months.  Townhouse prices have been rising for three months, to reach a benchmark of $1,477,700 in October. With an overall sales-to-listing ratio of 40% or a 7 month supply availalbe, the Westside is close to a balanced market, but we see an opening for buyers in this aspirational community.

Vancouver East Side: Total detached house sales in October were down a startling 51% from a year earlier to just 56 houses, the same as in Coquitlam. But the East Side detached house price was less than in Coquitlam. In fact, it is less expensive to buy a house on the East Side than in any suburban market except Maple Ridge-Pitt Meadows, Port Coquitlam or South Delta. East Side house prices now cost 11.5% less than 6 months ago, and we think, at a benchmark of $1,719,100, they offer perhaps the best value in the Lower Mainland. East Side condo apartment prices are now benchmarked at $678,900 and have been declining an average of 1% per month for six months. East Side benchmark townhouse prices in October were 2% lower than a year ago, at $1,028,500. Total East Side housing sales in October were 194, up 9% from a month earlier. The sales-to-listing ratio is running at 44%, fairly healthy, and there is about a 6 month supply of listings in this balanced market.

North Vancouver: A total of 195 residential properties sold in October, up a thundering 52% from September 2022, and the composite benchmark home price rose 0.8% month-over-month to $1,330,800. Detached house prices increased 1.5% from September to $2,124,600. With a 56% sales-to-listing ratio in October and the total inventory down to a 3 month supply, this is perhaps the strongest seller’s market in the Lower Mainland.

West Vancouver: Only 47 residential properties sold in October, up from 42 a month earlier but 48% less than in October 2021. This is a buyer’s market for those who aspire to live in one of Canada’s wealthiest neighbourhoods. There is a generous 13 month supply of homes on the market, 589 in all, and the sales-to-listing ratio is a low 22%, about the same as in October 2018, which was one of the slowest months on record. Despite all this, the composite home benchmark price in West Vancouver is $2,732,300, up 1.1% from September 2022 and nearly 2% higher than a year ago. The typical detached house sold in October for $3,317,500, also slightly higher than in September 2022.

Richmond: Richmond will likely see an influx of buyers, especially from Hong Kong, which has already sent a huge flow of residents this year. Total home sales in Richmond shot up 16% from September to 243 in October though they were down from 49% from the hectic pace of October 2021. The composite home benchmark price has declined 6.6% over the past six months to settle at $1,121,200 in October. There is just a 5 month supply of homes on the market, and the sales-to-listing ratio is a healthy 53%. This is technically a balanced market, but buyers and investors should be paying attention.

Burnaby East: Burnaby East, which borders New Westminster, has the lowest benchmark detached house price in Burnaby, at $1,826,700, but it also has the fastest rising house prices in the municipality. In October detached prices were up 2.3% from a month earlier and 7.6% higher than a year ago. This is a smaller market, with just 22 total residential transactions in October, but this was up 47% from October 2021, a rare increase for any Metro market. The supply of total residential listings is down to 3 month supply and the sales-to-listing ratio is 63% for the past two months. This is a seller’s market to watch.

Burnaby North: Some of the most amenity-rich condo projects in Canada are in North Burnaby’s Brentwood area – a new development will boast a 2.75-acre outdoor “beachfront” and running track plus an indoor bowling alley – so it is not surprising that condos sell well. Yet the benchmark condo price is $711,900, the lowest in Burnaby and well below the Greater Vancouver benchmark. Total residential sales in October reached 96, down 14% from September and 50% lower than in October 2021. Detached houses sold in October at $1,946,300, down 8% from six months earlier. Yet this is a seller’s market, with just a 4 month supply of listings and a sales-to-listing ratio of 48% in October.

Burnaby South: Burnaby South posted 122 housing sales in October, up 27% from a month earlier but 46% lower than in October 2021. The composite benchmark home price, at $1,064,300, has declined 10.3% over the past 6 months but remains 4.4% higher than a year ago. This is also a seller’s market, with a sales-to-listings ratio of 50% and only a 4 month supply of homes for sale as of October.

New Westminster: After a severe slump in September, housing sales rallied 6% in October to a still low 71 transactions. This compares with average sales of more than 166 per month in the same month one and two years ago. The low sales are a bit of a puzzle. The Royal City has proved a magnet for Millennials and the composite home price, at $809,800, is the lowest in Greater Vancouver. Condos led October sales, with 58 transactions at a median of $575,000, about $100,000 less than in neighbouring Burnaby. The Royal City also has SkyTrain service, a riverfront esplanade and a central location in the region so we expect sales will increase. Right now, it is technically a seller’s market with just a 4 month supply of listings and a sales-to-listing ratio of 49%, based on a tight inventory of just 310 homes for sale. But those looking at location and value may decide the city offers an advantage to buyers.

Coquitlam: In October, Coquitlam had more condos for sale (186) than every Greater Vancouver market except Burnaby and Vancouver, a reflection of the SkyTrain-linked strata developments on the Burnaby border. Coquitlam’s condo sales-to-listing ratio is a strong 59% and the median condo price in October was $638,000, third highest in the region. The 56 detached house sales in October were down nearly 50% from a year earlier, but the benchmark price was up 5% in the same period to $1,750,400. Townhouses are benchmarked at more than $1 million. With a total inventory of 619 listings and 3 months supply of listings, this is a seller’s market and has been for quite some time.

Port Moody: Total residential sales, at 44 in October, have not been this low for the month since October of 2018 and active listings, at 179, were down from 187 in September 2022. The composite home price was down 2% from September, and 8.6% lower than six months earlier, at $1,117,500 in October. With a sales-to-listing ratio of 54%, however, and a slim inventory of just a 4 month supply, this remains a seller’s market.

Port Coquitlam: This is one of the least-expensive housing markets in Greater Vancouver and the city saw sales rally in October as transactions increased 24% from September to 62 sales. This was down 49% from a year earlier, however, and the benchmark composite price continued a six-month slide to land at $917,000 in October, the lowest price in the Tri-City region. Active listings were at 187 at month end compared to 190 at the end of September.
This is a seller’s market with only a 3 month inventory at the current sales pace. Buyers, though, may consider PoCo an affordable option.

Pitt Meadows: With a current composite home price of $818,700, this small town attracts value-seeking buyers, including young families. With prices down 11% from six months ago, it will continue to be a draw. October total sales were up 5% from September to 21 transactions, but the total inventory of listings, at 107, and steep 25% drop in new listings in October from a month earlier means supply is limited. There is a 5 month supply of homes available so buyers should start looking early in this affordable market.

Maple Ridge: The benchmark price of a Maple Ridge townhouse in October was $732,000, but first-time buyers and young families should not get discouraged. In a recent search we found 9 active townhouse listings under $500,000, including some priced under $450,000. We also found more than a dozen condo apartments listed at less than $350,000, though the benchmark condo price is $525,500. A total of 99 sales were posted in October, down 14% from September, and the total inventory is a healthy 592, about double what it was a year ago. With a 6 month supply of listings and composite home prices down 17% in the past 6 months, this is a balanced market that is tilting sharply to a buyer’s advantage.

Ladner: Ladner’s new multi-family construction this year is mostly subsidized rentals, which won’t ease the tight inventory of market housing. With just 91 total listings on the market and a sales-to-listing ratio of 57%, supply is running low. In October, 21 residential properties sold at a benchmark of $1,110,600, a price up 0.6% from September, the first month-over-month price increase in at least six months. The detached house benchmark price, at $1,354,900, is 12.5% lower than in May 2022 but nearly unchanged (up 1%) from a year ago. With a 4 month supply of homes available, this is a seller’s market where prices are balancing.

Tsawwassen: The red-hot Southlands community helped drive sales and prices of townhouses in the area higher this spring, but prices have eased since. The benchmark Tsawwassen townhouse price in October was $1,218,400, still higher than in Richmond, Burnaby and even East Vancouver, but down 9.4% compared to 6 months earlier, when multiple offers were still being seen. Total home sales in October reached 28, up 33% from a month earlier but down 56% from October 2021. Detached houses are selling for $1,536,100, down 10.8% over the past six months. This is considered a balanced market with a 7 month supply of listings and a sales-to-listing ratio of 45% as of October.

Surrey: October sales of all types of homes were down sharply in October compared to a year earlier: detached sales fell 64.5% to 129 transactions; townhouse sales were down 52% and condo apartment sales dropped by 49.4% to just 146 units. Prices have stabilized, however, virtually unchanged from a month earlier. Detached houses sold in October at a benchmark of $1,584,100, up 2% from a October 2021; 128 townhouses sold at a $828,100 benchmark; and the condo apartment price was up 11% from a year earlier at $527,700. Still, with a huge inventory of homes listed and sales down at least 50% from a year ago, there are deals to be had. For instance, there were 111 active detached-house listings in Surrey priced at $900,000 or less and 24 condo apartments listed at $275,000 or less as this Dexter report was put together.

Kevin Skipworth, Partner/Broker and Chief Economist at Dexter Realty

Read

Sales and Listing Report: September 2022
Believe and act as if it were impossible to fail.”
Charles F. Kettering

New listings, housing starts flirt with record lows in August

Highlights of the August Report

  • Total new listings in August the lowest in more than 28 years
  • Ladner townhouses and condos fall to 1-month supply
  • At least six major condo projects have stopped or stalled this year
  • Existing condos, townhouses can’t be replaced at their current value
  • Surrey strata housing starts fall 69% this year compared to 2021
  • Port Coquitlam is down to 2 months supply overall and 1 month supply for townhouses

The major takeaway from the Metro Vancouver housing market is that both the number of new listings and the numbers of new homes being built are flirting with record lows. New listings of homes for sale fell to 3,383 in August, the lowest level in more than 28 years, while starts of new strata units plunged 43% year-over-year as of August 1, to just 6,596 new units – and this includes all Greater Vancouver plus Surrey and Langley.

Understanding the pull back in resale listings is not difficult.  This August offered the distraction of splendid weather and the lifting of COVID travel and other restrictions for the first summer in two years. Plus, a slowdown in home sales, rising interest rates and flatlining prices convinced many potential sellers to hesitate in listing their property.  We fully expect that the return to school and work this fall will see the traditional rise in home listings and sales.Reasons for the dramatic drop in non-rental homes being built are more complicated and it is harder to estimate when starts will begin to increase. Without a dramatic adjustment, we could be looking at a shortage of new homes in Metro Vancouver to continue for months, perhaps years, despite all the calls to increase the housing supply. At the end of 2021, 17 new strata projects in Metro Vancouver were being advertised as “coming soon” and had plans to begin marketing in early spring. Of these, six have been delayed and the other 11 could not provide an opening date for a launch, or the developers said marketing of pre-sales would not proceed until this fall.Of the 8 new strata projects that did decide to test pre-sales in August – with, of course, no construction underway – average sales totaled about 20% of the units offered – the same as in June and July and down from the 30% to 40% sales success in the summer of 2021. The simple reason is that developers, facing historically high land prices, higher government fees and charges, and soaring construction costs, cannot deliver a new condo or townhouse that is priced anywhere close to that of the resale market.One of the last big condo tower blowout sales in downtown Vancouver – which sold out in 2020 – had an average price per square foot of more than $2,000.  New projects going up the Cambie/Oakridge area are asking $3,000 per square foot, as are new towers planned for Coal Harbour. The average new condo or townhouse price is more than $1,600 per square foot, while resale prices on Vancouver’s West Side average $1,200 per square foot and are $837 per square foot or less in East Vancouver and most suburban markets.Dexter Realty alone has an existing downtown Vancouver condo on Howe Street listed at $1,200 per square foot; a Kitsilano 724-square-foot wood-frame condo on West 3rd Avenue listed at $699,000 ($965 per square foot); and an exceptional 836-square-foot 2-bedroom concrete condo in New Westminster priced at $529,000, the equivalent of $632 per square.Based on current developer costs, none of these existing condos could be reproduced today at the current listing price. For example, in the city of Vancouver, city development fees and charges alone average $186,000 on a new condo, and this does not include the federal GST which nails another 5% to the cost to the consumer, or the 30% increase in building material costs over the past year.How crazy are residential development land prices getting? This August, a 1.3-acre land assembly of three detached house lots in Langley near a proposed new SkyTrain extension sold for $18 million – the equivalent of nearly $14 million an acre. The assembly has potential for 159 new townhouses, but each would have more than $118,000 baked in just for land costs. Similar scenarios are seen across the Metro region.Now, there is concern that rental projects will also be put on hold because the cost of development outstrips the level of market rent that can be achieved. One rental developer explained that her input costs totaled $200 per buildable square foot meaning “the pro-forma for a rental doesn’t work at all.”Of course the elephant in the room continues to be supply. Even with the discussion turning to the need to produce more, immigration levels are only beginning to ramp up and the need for homes is only going to intensify. This month we’ll see what the allowable rental increase for 2023 will be, and for a rental market that is seeing extreme pressure due to a lack of rental supply, that’s only going to lead to higher rents and competition in that part of the market.The best advice for first-time buyers or investors is to purchase right now while there is a clear buyer’s advantage and to purchase a resale condo in transit-rich areas like East Vancouver, New Westminster and Surrey, where we are seeing a ballooning shortage of both new rental and strata properties.Meanwhile for family buyers, it is time to refocus on the detached market, which has seen the sharpest sales slowdown this year of any property type.August sales of detached houses in Greater Vancouver fell 45.3% from August 2021 and benchmark house prices have been dropping an average of 2.2 % month-over-month since February. In August, only 12.2% of detached active house listings sold (8 months supply), compared to 25% for strata units (4 months supply).In the Fraser Valley, the benchmark price for a single-family detached house decreased 5.1% (about $71,000) compared to a month earlier.Detached houses are in a buyer’s market right now and serious buyers should take full advantage. Markets to watch for detached house values are the West Side of Vancouver, where the median house price fell by $400,000 from July to August, even as sales increased; and North Vancouver and Richmond, where median prices for detached houses were down $185,000 and $100,000, respectively, in August from July.Detached house values are largely based on the value of land, which is becoming a scarce and expensive commodity across Metro Vancouver. So, think long term as always in real estate.

Regional highlights for August 2022

Greater Vancouver: There were a total of 1,891 home sales in August, down just 1% from July 2022 but 23% lower than in August 2021 and even 14% lower than in August 2019. Active Listings were at 10,099 at month end compared to 9,494 at that time last year and 10,734 (down 6%) at the end of July. New Listings in August are down 17% compared to July 2022 and 13% lower than in August 2021. The total supply of residential listings is down to 5 month’s supply (balanced market conditions) and the sales to listings ratio of 56% compared to 47% in July 2022 and 77% in August 2021. The benchmark composite home price was $1,180,500. This was down 2.2% compared to July 2022 but a 7.4 per cent increase over August 2021.The market is very much acting like a buyer’s market in many areas and product types. Subject to sale is coming into play more and more, and buyers can have time with subjects. Multiple offers will happen but not to the same extent we saw earlier this year. And certainly not with the same fever that has been occurring in the last two years. And while the condo market in the last few months has been stronger, in August in many areas sales of detached and townhouses outpaced the number of sales in July. Perhaps settling into the interest rate climate we are in and buyers taking advantage of price declines that have happened in that market segmentFraser Valley: In August, the Fraser Valley Real Estate Board processed 1,017 sales, an increase of 2.4 per cent compared to July 2022 but a 51.3% decrease compared to August 2021. New listings reached 2,045, down 14.3% from July and 2.9% below August 2021. While all benchmark prices were up from a year earlier, detached house prices were down 5.1% from July 2022, to $1,513,500; townhouse prices were down 3.9% month-over-month and condo apartment prices fell 2.1% from July 2022.Vancouver Westside: Detached houses on Vancouver’s Westside have long been the poster child of B.C.’s high housing prices and soaring sales. That changed somewhat as of August. With 57 sales in the month, detached house transactions were slightly higher than a month earlier but nearly 50% below August 2021, when 107 houses sold. But the median price of a Westside detached house in August, at $3,050,000 was down $300,000 from July 2022 and more than $280,000 less than in August of last year. Total sales of all property types in August reached 380 transactions, up 3% from July 2020 but down 15% from a year earlier. Townhouse prices, at a median of $1,300,000 were down more than $200,000 from both a month and a year earlier. Condos, which led sales with 282 transactions in August, saw the median price reach $829,000, down slightly from July 2022, but up from the median of $775,000 in August 2021. Total active listings were at 2,279 at month end compared to 2,389 at that time last year and 2,453 (down 7%) at the end of July 2020. New listings in August are down 12% compared to July 2022 and down 19% compared to August 2021. The current sales-to-listings ratio of 52% compares to 44% in July 2022 and 65% in August 2021. This remains in a balanced market, but the detached housing sector is into a buyer’s advantage.Vancouver East Side: We believe the East Side represents one of the best housing markets in the Metro region and August proved the point. There were the same number of detached sales on the East as the West side of Vancouver, at 57, but the median house price on the East Side, at $1,768,000 was $1.28 million less than on the Westside – and East Side detached prices, unlike the Westside and most of Greater Vancouver, were higher than in July 2022 and in August 2021. A further surprise is that East Side townhouse prices, at a median of $1,384,500 in August, and sales, at 52, were the highest of any market in Metro Vancouver, including the Westside. Total housing sales were 196 in August, down just 1% from a month earlier. Active listings were at 1,103 at month end compared to 1,090 at that time last year and down 7% at the end of July 2022. New listings in August were down 24% compared to July 2022, and 22% lower compared to August 2021. The overall sales-to-listings ratio is 59% compared to 45% in July 202 and 69% in August 2021. While detached homes show buyer’s market sales, the other sectors remain a seller’s market and that is not likely to change anytime soon.North Vancouver: There is new residential construction underway in North Vancouver this year, but it is dominated by rentals. As of August 1, for instance, 742 rental units had started, compared to just 202 strata units, including just 39 townhouses. Meanwhile, new listings of homes for sale in August were down 25% compared to a month earlier and total listings were only 524 at month end, down 8% from July. With 126 total sales in August, down 27% from a month earlier, prices for all types of property were also lower, despite a healthy sales-to-listing ratio of 56%. The median detached house price in August was $1,835,000, down from $2,020,000 in July; while townhouse prices were slightly lower at a median of $1,300,000; and condo apartment prices were down about $25,000 from July, at $700,219.West Vancouver: Due to policy changes late last year which caused a rush of permit applications to beat a January 31 deadline, West Vancouver is facing a huge backlog of applications so don’t expect many new homes to start this year. The entire housing market is down, with 53 sales in August, 13% lower than in July and down 21% from a year earlier. The overall benchmark composite home price, at $2,774,00 has barely budged in six months and was down 1.3% from this July. Active listings were at 565 at month end compared to 536 at that time last year and 580 (down 3%) at the end of July. The August sales-to-listings ratio of 35% compares to 32% in July 2022 and 52% in August 2021. This buyer’s market remains relatively slow but stable.Richmond: Richmond August housing sales, at 226, were higher than in July, increasing just 1% month over month, but down 33% from August 2021. Benchmark detached house prices have been slipping lower each month for six months and dipped a further 1% from July to $2,111,300. A shortage of strata units is looming, however, which may put a floor under strata prices. Richmond has seen several condo projects put on hold and the result is that just 282 new condo units have started this year, compared to 916 at the same time in 2021. Townhouse starts fell about 12% from last year to 96 units. Total new listings in August were down 13% compared to July 2022 and down 30% compared to August 2021, and even 27% lower than in August 2019. The supply of total residential listings is steady at 6 month’s supply and the sales- to-listings ratio of 60% compares to 52% in July 2022 and 82% in August 2021. This is technically a buyer’s market but appears to be leaning this summer to a buyer’s advantage, especially in the detached-house sector.Burnaby East: Burnaby East posted the lowest sales of any Burnaby area, with just 20 transactions in August, the lowest level for that month in at least three years and down 9% from July 2020. The benchmark composite home price has now dropped nearly 8% over the past six months to settle at $1,109,000 in August. Active Listings were at 75 at month end compared to 83 at that time last year and 68 at the end of July. New listings in August are down 18% compared to July 2022 and 47% lower compared to August 2021. This remains a seller’s market, with a sales-to-listings ratio of 74%.Burnaby North: By this time next year, giant Grosvenor will have construction underway for 3,500 homes, including about 900 strata units in the Brentwood Block in the Brentwood Town Centre. Meanwhile the benchmark price for a Burnaby North condo apartment in August was down 2.4% from a month earlier to $717,300, but still 11.5% higher than a year ago. Total housing sales in August were 120, down 3% from July 2022, and 34% lower when compared to August 2021. Active listings were 448 at month end, 6% less than at the end of July. New listings were down 22% compared to July 2022, and the lowest level for August since 2019. The sales-to-listings ratio of 63% is down from 76% a year ago but this market retains a seller’s advantage.Burnaby South: Benchmark prices for detached houses and townhouses have been tracking down steadily, with detached houses shedding 9.2% in value since June to $2,105,200 in August, while townhouses have dropped 9.5% in the past three months to $964,300. Still, with active listings down 12% from July, total sales down 2% in the same period and the sales-to-listing ratio running at 73% in August, Burnaby South remains a hot seller’s market. The condo market is especially strong with benchmark prices down just 1.2% from the February peak at $776,300, the highest condo price in Burnaby.New Westminster: If it were not for 452 subsidized rentals, few new housing starts would have registered in New Westminster this year. As it was, starts of strata units fell to just 185 homes through the first seven months of 2022, compared to 1,255 strata starts – including 65 townhouses – at the same time in 2021. This may be bad news for future buyers because active listings in August were down to just 280 homes and new listings were down 20% from a month earlier to the lowest level since at least August 2019. With 77 sales in August, the sales-to-listing ratio was 65%, compared to 88% a year earlier. Benchmark prices for all property types have been declining, however, led by a 11.1% reduction in detached house prices from six months earlier to $1,450,100 in August. Townhouse and condo apartment prices have been slipping down for three months to settle at $922,800 and $651,000, respectively.Coquitlam: More strata housing starts are being seen this year – a total of 1,342 units as of August 1 – in the Tri-Cities than any other market in the Lower Mainland and the bulk of the activity is in Coquitlam. This bodes well for a municipality where August sales – at 157 – were up 11% from July and where the sales-to-listing ratio is at 59%. This is down from 93% a year ago, but still one of the strongest in Metro Vancouver. Both active and new listings were down slightly from a month earlier, with a total of 616 homes available at the end of August. The benchmark composite price was down 2.6% from July and off nearly 6% from six months earlier, at $1,104,000 in August. Detached houses sold at a benchmark of $1,794,700n in August, while townhomes fetched $1,058,000 and condo prices were down 1.7% from July at a benchmark of $669,200.Port Moody: Total homes sold in August were 33 – down from 45 (- 27%) in July 2022 and down from 57 (-42%) in August 2021. Active listings were at 202 at month end compared to 155 at that time last year and 203 (down just 0.5%) at the end of July. New Listings in August are down 7% compared to July 2022. Month’s supply of total residential listings is up to 6 month’s supply (balanced market conditions) and sales to listings ratio of 43% compared to 54% in July 2022 and 73% in August 2021. The benchmark composite home price in August was $1,175,200, reflective of the higher detached-house values in the Belcarra neighbourhood.Port Coquitlam: Total housing sales in August were 78, up 10% from July 2022 but, down 20% compared to August 2021. But total active listings dropped 16% from a month earlier to 178, resulting in a sales-to-listing ratio of 76%, one of the highest in Greater Vancouver. There is just a 2-month supply of homes on the market. Benchmark prices, however, remain relatively low at a composite price of $917,200 in August, with detached houses selling for $1,328,100 a price down 13% from six months earlier and nearly 5% lower than in July 2022.Pitt Meadows: Just 17 homes sold during August, down 13% from July and 56% lower than in pre-pandemic August 2019. The surge in sales and prices seen through the pandemic has clearly eased. The August benchmark detached house price was down 17.6% from six months earlier, at $1,253,800 and townhouse prices were down 5.6% in the same period to $905,500. Active listings nearly doubled from July to 96 at the end of August and new listings were 16% higher than a year earlier. With a sales-to-listing ratio at 39% – compared to 85% during the height of the pandemic in August 2020 – this market is tracking towards a buyer’s advantage.Maple Ridge: With 113 total sales in August, up 5% from a month earlier, Maple Ridge posted a respectable 48% sales-to-listing ratio, indicating a balanced market but with sellers having a slight advantage. There were 602 active listings at the end of August, down from 655 at the end of July. The detached house benchmark price was down nearly 13% from six months earlier, at $1,279,200. Townhouses sold in August at benchmark of $750,700, down 5.3% from a month earlier and 14.6% below the price six months ago.Ladner: Anyone who has driven past the exit to Ladner this year has seen the profusion of strata units, primarily townhouses, that sprang up over the past two years. And they continue to sell well, posting a 128% sales-to-listing ratio as 9 townhouses sold at a benchmark price of $884,800 in August, a price down, however, from $965,444 a month earlier. There is only a 1-month supply of townhouses on the Ladner market. Total sales in August of all properties were 27, up 108% from July. Total active listings were 99 at the end of August, down 12% from July and disappearing at sales ratio of 88%, compared to 32% a month earlier. Ladner remains a seller’s market, but there is just a total of 4-month’s supply of homes available.Tsawwassen: Just 9 detached houses sold in Tsawwassen in August, the lowest level of any month since January of 2020. Yet, the average detached house price in August was $1,704,988, up 4% from a month earlier and well above the average of $1,540,600 in August of last year. Total August sales of all property reached only 25 transactions, down 11% from July and 66% below August of 2021. So far, prices are sticky, but this may change if sales continue to decline. The sales-to-listing ratio fell to 40% in August, down from 112% a year earlier and the lowest ratio in at least three years.Surrey: The bloom came off the rosy Surrey housing market in August as detached house sales fell to 152 transactions, down 60.8% from a year earlier. Townhouse sales were down nearly 45% year over year and condo apartment sales, at 169, were 41.7% lower than in August 2021. Still, total sales were slightly higher than in July 2022 and benchmark prices held their own. The average detached house price in August was $1,636,086, down just 1.6% from July, with townhouse selling for $837,902, down 4.4% from a month earlier. The 169 condo sales in August traded at an average of $539,597, virtually unchanged from July 2021 but up nearly 12% from August of 2021. Surrey, however, has seen a fast decline in strata starts this year, with a total of 698 condo and townhouse started so far, compared to 2,321 in the first seven months of 2021.Kevin Skipworth, Partner/Broker and Chief Economist at Dexter Realty
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Sales and Listing Report: August 2022

“Believe and act as if it were impossible to fail.”

Charles F. Kettering

New listings, housing starts flirt with record lows in August

Highlights of the August Report

  • Total new listings in August the lowest in more than 28 years

  • Ladner townhouses and condos fall to 1-month supply

  • At least six major condo projects have stopped or stalled this year

  • Existing condos, townhouses can’t be replaced at their current value

  • Surrey strata housing starts fall 69% this year compared to 2021

  • Port Coquitlam is down to 2 months supply overall and 1 month supply for townhouses

The major takeaway from the Metro Vancouver housing market is that both the number of new listings and the numbers of new homes being built are flirting with record lows. New listings of homes for sale fell to 3,383 in August, the lowest level in more than 28 years, while starts of new strata units plunged 43% year-over-year as of August 1, to just 6,596 new units – and this includes all Greater Vancouver plus Surrey and Langley.

Understanding the pull back in resale listings is not difficult.  This August offered the distraction of splendid weather and the lifting of COVID travel and other restrictions for the first summer in two years. Plus, a slowdown in home sales, rising interest rates and flatlining prices convinced many potential sellers to hesitate in listing their property.  We fully expect that the return to school and work this fall will see the traditional rise in home listings and sales.

Reasons for the dramatic drop in non-rental homes being built are more complicated and it is harder to estimate when starts will begin to increase. Without a dramatic adjustment, we could be looking at a shortage of new homes in Metro Vancouver to continue for months, perhaps years, despite all the calls to increase the housing supply. At the end of 2021, 17 new strata projects in Metro Vancouver were being advertised as “coming soon” and had plans to begin marketing in early spring. Of these, six have been delayed and the other 11 could not provide an opening date for a launch, or the developers said marketing of pre-sales would not proceed until this fall.

Of the 8 new strata projects that did decide to test pre-sales in August – with, of course, no construction underway – average sales totaled about 20% of the units offered – the same as in June and July and down from the 30% to 40% sales success in the summer of 2021. The simple reason is that developers, facing historically high land prices, higher government fees and charges, and soaring construction costs, cannot deliver a new condo or townhouse that is priced anywhere close to that of the resale market.

One of the last big condo tower blowout sales in downtown Vancouver – which sold out in 2020 – had an average price per square foot of more than $2,000.  New projects going up the Cambie/Oakridge area are asking $3,000 per square foot, as are new towers planned for Coal Harbour. The average new condo or townhouse price is more than $1,600 per square foot, while resale prices on Vancouver’s West Side average $1,200 per square foot and are $837 per square foot or less in East Vancouver and most suburban markets.

Dexter Realty alone has an existing downtown Vancouver condo on Howe Street listed at $1,200 per square foot; a Kitsilano 724-square-foot wood-frame condo on West 3rd Avenue listed at $699,000 ($965 per square foot); and an exceptional 836-square-foot 2-bedroom concrete condo in New Westminster priced at $529,000, the equivalent of $632 per square.

Based on current developer costs, none of these existing condos could be reproduced today at the current listing price. For example, in the city of Vancouver, city development fees and charges alone average $186,000 on a new condo, and this does not include the federal GST which nails another 5% to the cost to the consumer, or the 30% increase in building material costs over the past year.

How crazy are residential development land prices getting? This August, a 1.3-acre land assembly of three detached house lots in Langley near a proposed new SkyTrain extension sold for $18 million – the equivalent of nearly $14 million an acre. The assembly has potential for 159 new townhouses, but each would have more than $118,000 baked in just for land costs. Similar scenarios are seen across the Metro region.

Now, there is concern that rental projects will also be put on hold because the cost of development outstrips the level of market rent that can be achieved. One rental developer explained that her input costs totaled $200 per buildable square foot meaning “the pro-forma for a rental doesn’t work at all.”

Of course the elephant in the room continues to be supply. Even with the discussion turning to the need to produce more, immigration levels are only beginning to ramp up and the need for homes is only going to intensify. This month we’ll see what the allowable rental increase for 2023 will be, and for a rental market that is seeing extreme pressure due to a lack of rental supply, that’s only going to lead to higher rents and competition in that part of the market.

The best advice for first-time buyers or investors is to purchase right now while there is a clear buyer’s advantage and to purchase a resale condo in transit-rich areas like East Vancouver, New Westminster and Surrey, where we are seeing a ballooning shortage of both new rental and strata properties.

Meanwhile for family buyers, it is time to refocus on the detached market, which has seen the sharpest sales slowdown this year of any property type.

August sales of detached houses in Greater Vancouver fell 45.3% from August 2021 and benchmark house prices have been dropping an average of 2.2 % month-over-month since February. In August, only 12.2% of detached active house listings sold (8 months supply), compared to 25% for strata units (4 months supply).

In the Fraser Valley, the benchmark price for a single-family detached house decreased 5.1% (about $71,000) compared to a month earlier.

Detached houses are in a buyer’s market right now and serious buyers should take full advantage. Markets to watch for detached house values are the West Side of Vancouver, where the median house price fell by $400,000 from July to August, even as sales increased; and North Vancouver and Richmond, where median prices for detached houses were down $185,000 and $100,000, respectively, in August from July.

Detached house values are largely based on the value of land, which is becoming a scarce and expensive commodity across Metro Vancouver. So, think long term as always in real estate.

Regional highlights for August 2022

Greater Vancouver: There were a total of 1,891 home sales in August, down just 1% from July 2022 but 23% lower than in August 2021 and even 14% lower than in August 2019. Active Listings were at 10,099 at month end compared to 9,494 at that time last year and 10,734 (down 6%) at the end of July. New Listings in August are down 17% compared to July 2022 and 13% lower than in August 2021. The total supply of residential listings is down to 5 month’s supply (balanced market conditions) and the sales to listings ratio of 56% compared to 47% in July 2022 and 77% in August 2021. The benchmark composite home price was $1,180,500. This was down 2.2% compared to July 2022 but a 7.4 per cent increase over August 2021.

The market is very much acting like a buyer’s market in many areas and product types. Subject to sale is coming into play more and more, and buyers can have time with subjects. Multiple offers will happen but not to the same extent we saw earlier this year. And certainly not with the same fever that has been occurring in the last two years. And while the condo market in the last few months has been stronger, in August in many areas sales of detached and townhouses outpaced the number of sales in July. Perhaps settling into the interest rate climate we are in and buyers taking advantage of price declines that have happened in that market segment

Fraser Valley: In August, the Fraser Valley Real Estate Board processed 1,017 sales, an increase of 2.4 per cent compared to July 2022 but a 51.3% decrease compared to August 2021. New listings reached 2,045, down 14.3% from July and 2.9% below August 2021. While all benchmark prices were up from a year earlier, detached house prices were down 5.1% from July 2022, to $1,513,500; townhouse prices were down 3.9% month-over-month and condo apartment prices fell 2.1% from July 2022.

Vancouver Westside: Detached houses on Vancouver’s Westside have long been the poster child of B.C.’s high housing prices and soaring sales. That changed somewhat as of August. With 57 sales in the month, detached house transactions were slightly higher than a month earlier but nearly 50% below August 2021, when 107 houses sold. But the median price of a Westside detached house in August, at $3,050,000 was down $300,000 from July 2022 and more than $280,000 less than in August of last year. Total sales of all property types in August reached 380 transactions, up 3% from July 2020 but down 15% from a year earlier. Townhouse prices, at a median of $1,300,000 were down more than $200,000 from both a month and a year earlier. Condos, which led sales with 282 transactions in August, saw the median price reach $829,000, down slightly from July 2022, but up from the median of $775,000 in August 2021. Total active listings were at 2,279 at month end compared to 2,389 at that time last year and 2,453 (down 7%) at the end of July 2020. New listings in August are down 12% compared to July 2022 and down 19% compared to August 2021. The current sales-to-listings ratio of 52% compares to 44% in July 2022 and 65% in August 2021. This remains in a balanced market, but the detached housing sector is into a buyer’s advantage.

Vancouver East Side: We believe the East Side represents one of the best housing markets in the Metro region and August proved the point. There were the same number of detached sales on the East as the West side of Vancouver, at 57, but the median house price on the East Side, at $1,768,000 was $1.28 million less than on the Westside – and East Side detached prices, unlike the Westside and most of Greater Vancouver, were higher than in July 2022 and in August 2021. A further surprise is that East Side townhouse prices, at a median of $1,384,500 in August, and sales, at 52, were the highest of any market in Metro Vancouver, including the Westside. Total housing sales were 196 in August, down just 1% from a month earlier. Active listings were at 1,103 at month end compared to 1,090 at that time last year and down 7% at the end of July 2022. New listings in August were down 24% compared to July 2022, and 22% lower compared to August 2021. The overall sales-to-listings ratio is 59% compared to 45% in July 202 and 69% in August 2021. While detached homes show buyer’s market sales, the other sectors remain a seller’s market and that is not likely to change anytime soon.

North Vancouver: There is new residential construction underway in North Vancouver this year, but it is dominated by rentals. As of August 1, for instance, 742 rental units had started, compared to just 202 strata units, including just 39 townhouses. Meanwhile, new listings of homes for sale in August were down 25% compared to a month earlier and total listings were only 524 at month end, down 8% from July. With 126 total sales in August, down 27% from a month earlier, prices for all types of property were also lower, despite a healthy sales-to-listing ratio of 56%. The median detached house price in August was $1,835,000, down from $2,020,000 in July; while townhouse prices were slightly lower at a median of $1,300,000; and condo apartment prices were down about $25,000 from July, at $700,219.

West Vancouver: Due to policy changes late last year which caused a rush of permit applications to beat a January 31 deadline, West Vancouver is facing a huge backlog of applications so don’t expect many new homes to start this year. The entire housing market is down, with 53 sales in August, 13% lower than in July and down 21% from a year earlier. The overall benchmark composite home price, at $2,774,00 has barely budged in six months and was down 1.3% from this July. Active listings were at 565 at month end compared to 536 at that time last year and 580 (down 3%) at the end of July. The August sales-to-listings ratio of 35% compares to 32% in July 2022 and 52% in August 2021. This buyer’s market remains relatively slow but stable.

Richmond: Richmond August housing sales, at 226, were higher than in July, increasing just 1% month over month, but down 33% from August 2021. Benchmark detached house prices have been slipping lower each month for six months and dipped a further 1% from July to $2,111,300. A shortage of strata units is looming, however, which may put a floor under strata prices. Richmond has seen several condo projects put on hold and the result is that just 282 new condo units have started this year, compared to 916 at the same time in 2021. Townhouse starts fell about 12% from last year to 96 units. Total new listings in August were down 13% compared to July 2022 and down 30% compared to August 2021, and even 27% lower than in August 2019. The supply of total residential listings is steady at 6 month’s supply and the sales- to-listings ratio of 60% compares to 52% in July 2022 and 82% in August 2021. This is technically a buyer’s market but appears to be leaning this summer to a buyer’s advantage, especially in the detached-house sector.

Burnaby East: Burnaby East posted the lowest sales of any Burnaby area, with just 20 transactions in August, the lowest level for that month in at least three years and down 9% from July 2020. The benchmark composite home price has now dropped nearly 8% over the past six months to settle at $1,109,000 in August. Active Listings were at 75 at month end compared to 83 at that time last year and 68 at the end of July. New listings in August are down 18% compared to July 2022 and 47% lower compared to August 2021. This remains a seller’s market, with a sales-to-listings ratio of 74%.

Burnaby North: By this time next year, giant Grosvenor will have construction underway for 3,500 homes, including about 900 strata units in the Brentwood Block in the Brentwood Town Centre. Meanwhile the benchmark price for a Burnaby North condo apartment in August was down 2.4% from a month earlier to $717,300, but still 11.5% higher than a year ago. Total housing sales in August were 120, down 3% from July 2022, and 34% lower when compared to August 2021. Active listings were 448 at month end, 6% less than at the end of July. New listings were down 22% compared to July 2022, and the lowest level for August since 2019. The sales-to-listings ratio of 63% is down from 76% a year ago but this market retains a seller’s advantage.

Burnaby South: Benchmark prices for detached houses and townhouses have been tracking down steadily, with detached houses shedding 9.2% in value since June to $2,105,200 in August, while townhouses have dropped 9.5% in the past three months to $964,300. Still, with active listings down 12% from July, total sales down 2% in the same period and the sales-to-listing ratio running at 73% in August, Burnaby South remains a hot seller’s market. The condo market is especially strong with benchmark prices down just 1.2% from the February peak at $776,300, the highest condo price in Burnaby.

New Westminster: If it were not for 452 subsidized rentals, few new housing starts would have registered in New Westminster this year. As it was, starts of strata units fell to just 185 homes through the first seven months of 2022, compared to 1,255 strata starts – including 65 townhouses – at the same time in 2021. This may be bad news for future buyers because active listings in August were down to just 280 homes and new listings were down 20% from a month earlier to the lowest level since at least August 2019. With 77 sales in August, the sales-to-listing ratio was 65%, compared to 88% a year earlier. Benchmark prices for all property types have been declining, however, led by a 11.1% reduction in detached house prices from six months earlier to $1,450,100 in August. Townhouse and condo apartment prices have been slipping down for three months to settle at $922,800 and $651,000, respectively.

Coquitlam: More strata housing starts are being seen this year – a total of 1,342 units as of August 1 – in the Tri-Cities than any other market in the Lower Mainland and the bulk of the activity is in Coquitlam. This bodes well for a municipality where August sales – at 157 – were up 11% from July and where the sales-to-listing ratio is at 59%. This is down from 93% a year ago, but still one of the strongest in Metro Vancouver. Both active and new listings were down slightly from a month earlier, with a total of 616 homes available at the end of August. The benchmark composite price was down 2.6% from July and off nearly 6% from six months earlier, at $1,104,000 in August. Detached houses sold at a benchmark of $1,794,700n in August, while townhomes fetched $1,058,000 and condo prices were down 1.7% from July at a benchmark of $669,200.

Port Moody: Total homes sold in August were 33 – down from 45 (- 27%) in July 2022 and down from 57 (-42%) in August 2021. Active listings were at 202 at month end compared to 155 at that time last year and 203 (down just 0.5%) at the end of July. New Listings in August are down 7% compared to July 2022. Month’s supply of total residential listings is up to 6 month’s supply (balanced market conditions) and sales to listings ratio of 43% compared to 54% in July 2022 and 73% in August 2021. The benchmark composite home price in August was $1,175,200, reflective of the higher detached-house values in the Belcarra neighbourhood.

Port Coquitlam: Total housing sales in August were 78, up 10% from July 2022 but, down 20% compared to August 2021. But total active listings dropped 16% from a month earlier to 178, resulting in a sales-to-listing ratio of 76%, one of the highest in Greater Vancouver. There is just a 2-month supply of homes on the market. Benchmark prices, however, remain relatively low at a composite price of $917,200 in August, with detached houses selling for $1,328,100 a price down 13% from six months earlier and nearly 5% lower than in July 2022.

Pitt Meadows: Just 17 homes sold during August, down 13% from July and 56% lower than in pre-pandemic August 2019. The surge in sales and prices seen through the pandemic has clearly eased. The August benchmark detached house price was down 17.6% from six months earlier, at $1,253,800 and townhouse prices were down 5.6% in the same period to $905,500. Active listings nearly doubled from July to 96 at the end of August and new listings were 16% higher than a year earlier. With a sales-to-listing ratio at 39% – compared to 85% during the height of the pandemic in August 2020 – this market is tracking towards a buyer’s advantage.

Maple Ridge: With 113 total sales in August, up 5% from a month earlier, Maple Ridge posted a respectable 48% sales-to-listing ratio, indicating a balanced market but with sellers having a slight advantage. There were 602 active listings at the end of August, down from 655 at the end of July. The detached house benchmark price was down nearly 13% from six months earlier, at $1,279,200. Townhouses sold in August at benchmark of $750,700, down 5.3% from a month earlier and 14.6% below the price six months ago.

Ladner: Anyone who has driven past the exit to Ladner this year has seen the profusion of strata units, primarily townhouses, that sprang up over the past two years. And they continue to sell well, posting a 128% sales-to-listing ratio as 9 townhouses sold at a benchmark price of $884,800 in August, a price down, however, from $965,444 a month earlier. There is only a 1-month supply of townhouses on the Ladner market. Total sales in August of all properties were 27, up 108% from July. Total active listings were 99 at the end of August, down 12% from July and disappearing at sales ratio of 88%, compared to 32% a month earlier. Ladner remains a seller’s market, but there is just a total of 4-month’s supply of homes available.

Tsawwassen: Just 9 detached houses sold in Tsawwassen in August, the lowest level of any month since January of 2020. Yet, the average detached house price in August was $1,704,988, up 4% from a month earlier and well above the average of $1,540,600 in August of last year. Total August sales of all property reached only 25 transactions, down 11% from July and 66% below August of 2021. So far, prices are sticky, but this may change if sales continue to decline. The sales-to-listing ratio fell to 40% in August, down from 112% a year earlier and the lowest ratio in at least three years.

Surrey: The bloom came off the rosy Surrey housing market in August as detached house sales fell to 152 transactions, down 60.8% from a year earlier. Townhouse sales were down nearly 45% year over year and condo apartment sales, at 169, were 41.7% lower than in August 2021. Still, total sales were slightly higher than in July 2022 and benchmark prices held their own. The average detached house price in August was $1,636,086, down just 1.6% from July, with townhouse selling for $837,902, down 4.4% from a month earlier. The 169 condo sales in August traded at an average of $539,597, virtually unchanged from July 2021 but up nearly 12% from August of 2021. Surrey, however, has seen a fast decline in strata starts this year, with a total of 698 condo and townhouse started so far, compared to 2,321 in the first seven months of 2021.

Kevin Skipworth, Partner/Broker and Chief Economist at Dexter Realty

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Sales and Listing Report for July 2022

“Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.

Dale Carnegie

Homebuyers, investors take advantage in this market

Highlights of the July Report

  • Average 5-year mortgage rates are up just 1.4% from six months ago.
  • First-time homebuyers in B.C. are down 46% compared to a year ago.
  • Foreign homebuyers now account for just 1% of Metro transactions.
  • July benchmark detached house price is up $47,500 from January 2022.
  • The number of active listings are in decline

There are two sectors of homebuyers in Metro Vancouver’s market: owner-occupiers buying for their own use and investors buying homes for rental income or appreciation, with the latter traditionally accounting for about 20% of transactions. The current calming of the housing market represents an historical opportunity for both parties.

The current calming of the housing market represents an historical opportunity for both parties. For homebuyers who plan to purchase a property to live in for a long time, the current hysteria over rather modest mortgage interest rate hikes shouldn’t impact their purchase decision. After the drama of three Bank of Canada rates hikes, the average five-year fixed-rate mortgage at Canada’s six big banks has increased by just 1.4% in the last six months. Buyers purchasing into a five- or 10-year ownership horizon will be glad they bought during this lull in the summer of 2022.

It is rather ironic that, as strong economy creates near full employment in B.C. some look back to the global pandemic as the good old days.

But those who bought a Greater Vancouver home in pre-pandemic July 2019 – when the market was quite sluggish – would have experienced an average lift in benchmark value of 21% as of this month, or a cash increase in excess of $212,000. A detached house returned 41%, or a typical increase of $583,600, despite the recent easing of detached prices.

Since the start of this year, the typical detached house price is up by $47,500, though prices have declined over the past four months.

Of course, there is the psychological, counterintuitive factor at play, as many homebuyers pull to the sidelines just when they should be buying and then plunge in just when the market is peaking. It is a consistent phenomena that defies logic or change. The winning homebuyers in the current market cycle, as in the sleepy summer of 2019, will be those who act while others hesitate.

Some buyers, however, are being shunted aside in the current cycle: first-time homebuyers and foreign buyers. This may prove a boon to investors.

During the first half of this year, the number of B.C. first-time buyers fell 46% compared to the same period last year, accounting for just 4,426 purchasers. A key reason is the federal government’s mandatory stress test, which requires buyers to qualify at an unrealistically high five-year mortgage rate that many first buyers have difficulty meeting. Instead of buying, more than 4,000 will remain renters.

Also, while foreign homebuyers before the Foreign Buyer Tax may have accounted for 6% or more of all sales, they now make up only 1% of Metro Vancouver transactions, according to the BC Finance Ministry. The reason is a 20% of a home’s value tax on foreign buyer and the looming two-year ban on foreign homebuyers next January by the Federal Government.

So, investors who are purchasing investment condominiums now are enjoying lower prices, zero competition from global investors, a captive audience of renters and rising rental rates.

Investors realize that, despite all the government chest thumping over increasing the supply, Metro Vancouver housing starts as of July were down 23% from a year earlier and the new strata shortage is getting worse.

Part of the reason for this is government fees and taxes on new condos and townhomes, which, according to a survey released July 5 by Canada Mortgage and Housing Corp., account for up to 20% of a new strata price in Metro Vancouver. The Government Charges on Residential Development in Canada’s Largest Metropolitan Areas survey found a typical developer’s profit on a new condo is estimated at between 10% to 15%, so Metro Vancouver municipalities can make more money on a new home than those who build it. That’s not right, but it is reality.

The City of Vancouver, CMHC reported, has Canada’s highest average cost per-square-foot on new strata buildings, at $143 per square foot, owing entirely to density payments.

When the market was surging, private developers could handle such disparity. With sales and prices slowing, projects are being delayed or cancelled, which will lead to a further shortage of new condos and townhouses this fall.

We are now in a brief and government-induced buyer’s market that both homebuyers and savvy investors should take advantage of. While the market is slower now, like every market, this one will turn too. Buyers, enjoy it now!

Here is a look at the regional numbers:

Greater Vancouver: With the total inventory of homes for sale now at 6-month supply, the market has moved into balanced territory with some regions into a buyer’s market, especially for detached houses. The sales-to-listing ratio for detached houses in July fell to 39% and there are 8-months supply of homes available, which, if it persists, generally means prices are heading lower. A total of 1,904 residential properties sold in July, down 33% from a month earlier and 44% lower than in July 2021 and lower than even July 2019 and 2018. The composite benchmark home price in July is $1,207,400. This is a 10.3% increase over July 2021 but a 2.3% decrease compared to June 2022. Benchmark prices have been slowly declining, month-over-month since February. The July benchmark price for a detached home is $2,000,600, a 2.8 per cent decrease compared to June 2022. Active listings were at 10,734 at month end compared to 10,367 at that time last year but nearly unchanged from June 2022 at 10,839; New listings in July were down 25% compared to June 2022 and 10% lower than in July 2021.

July saw 4,067 new listings come to the market which was below the 5,410 that came on the market in June 2022 and less than the 4,514 that came out in July 2021 – sellers are beginning to hold off as well as many aren’t prepared to sell at prices below what they could have obtained earlier this year. And with less, listings, there are more properties coming off the market that were listed which is resulting in lower active listing counts. The number of new listings in July were 19% below the 10-year average (down from 3.5% below the 10-year average last month).

Fraser Valley: In July, the Fraser Valley Real Estate Board reported 993 sales, a decrease of 22.5% from the previous month and a 50.5% drop compared to July 2021. July new listings totalled 2,385, down 28.4% compared to June 2022 and a decrease of 1.9% from July 2021. Active listings, at 6,413, were unchanged from June and up 30.9% over last July – bringing the sector into balance for townhomes and detached homes (sales-to-active ratios: 18% and 12% respectively); and favouring sellers slightly for apartments. Benchmark prices dropped for the fourth consecutive month, most notably for detached homes which ended the month with a benchmark price of $1,594,400, down 10.2% since peaking in March 2022. Residential combined properties benchmark prices are up year-over-year by 18.1 per cent. Clearly the biggest gain earlier this year is seeing more of a pull back.

Vancouver Westside: There were only 368 total residential sales in July, down 18% from a month earlier to the lowest July level in at least four years. The Westside now has a 15-month supply of detached houses on the market, signally a buyer’s market in this sector. The July benchmark price of the 43 detached house sales was down 3.4% from June 2022 to $3,381,800. That is a drop of about $115,000 in a single month. Total active listings were 2,453 at month end compared to 2,558 at that time last year and down 3% from June 2022. New listings in July were down 23% compared to June 2022 and lowest level since at least July 2019. Condominiums now dominate the Westside, accounting for 294 sales in July at a benchmark price of $844,300.

Vancouver East Side: As the Broadway subway, the new St. Paul’s Hospital medical campus and a growing tech sector take shape in the area, the East Side could be the right side for investors this year. The median price of the 101 detached house sales sold in July was $1,790,000, almost exactly half the house price on the Westside. The East Side is a rare market where developers continue to assemble residential lots for higher-density strata (there are at least six land assemblies underway) and rentals. The July sales-to-listing ratio for detached houses was 39%, with condo sales ratios at 53%. With 1,191 total active listings and just 198 sales in July, there is an opportunity to find very good investments amid a healthy inventory. Look to the East 12th and Renfrew area and Commercial Drive to Main Street for condo rental and detached-house investor opportunities. The inventory of total residential listings is up to 6 month’s supply in a market seeking balance but favouring sellers.

North Vancouver: North Vancouver appears to have lot of construction underway, but nearly all the apartment starts this year are rentals, including 536 of the 750 new apartments. Actually, new strata starts are at near record lows. This is a concern, because new listings were down 35% in July compared to a month earlier and the total inventory of homes for sale is at just 573, while the sales ratio was running at 57%, up from 43% in June 2022. In July, 44 houses sold at a median price of just over $2 million, virtually unchanged from June but up $125,000 from a year earlier. With only a 3-month supply of listings on the market and steady prices, North Vancouver remains a seller’s market.

West Vancouver: With 30 of the total 43 sales in July, detached houses remain the draw for buyers in Metro’s most exclusive community. The benchmark price of a detached house in West Vancouver dropped 3.3% in July from a month earlier, yet remained at $3,376,200, second highest behind the Westside. Condo prices in West Vancouver, however, posted the biggest price drop – 6% – in Metro over the past three months, to $1,243,300. With total July sales down from a month and a year earlier and the inventory up to a 12-month supply, a mild buyer’s market is emerging in this aspirational market.

Richmond: Perhaps no other Metro market will feel the sting of a two-year foreign homebuyer ban as much as multicultural Richmond. The ban is to begin January 1, 2023, though surveys show that foreign-home buyers now account for only 1% of transactions. The ban has notable exemptions for permanent residents and temporary residents, including temporary workers and international students. Still, Richmond sales were down 44% in July from June 2022 and 48% lower than in July of last year, to just 223 transactions. The composite benchmark price is $1,162,400 after declining 3.2% over the last three months. Active listings were at 1,356 at month end compared to 1,380 at the end of June 2022. Total supply of residential listings is up to 6-month’s supply, which signals a balanced market, and the sales-to-listing rate is a very balanced 52%. Richmond could go either way, but we believe it could tilt into a buyer’s market this fall.

Burnaby East: Burnaby East is a fine family neighbourhood with two large parks, good schools, transit and shopping but it was looked over by buyers in July. 
Total housing sales were just 22, down 52% from a year earlier to the lowest monthly level this year. However, with a very tight supply – just 68 total listings – new listings down 42% from a year ago and a sales-to-listing ratio of 67%, this remains a seller’s market. Composite prices have been dropping for three months and were down 2.1% from June 2022 at $1,154,200; detached house have declined to $1,805,400, the lowest in Burnaby.

Burnaby North: With U.K.-based Grosvenor proceeding with a 7.9-acre land assembly in Brentwood for a “car-free” high-density rental and condo development, and Shape Properties marketing its sixth tower in the area, high-rise condos will continue to define Burnaby North. In July, the benchmark condo price was unchanged from June 2022 at $734,800, but 15% higher than a year earlier. The biggest price drop has been in townhouses, which shed 4% from June 2022 to a $942,600 benchmark. Total housing sales, at 124, were down 37% from a year earlier and lower than in both May and June of this year. Despite the surging condo construction, there is only a total inventory of 4 month’s supply of total listings and the sales-to-listing ratio is holding steady at 51%. This is seller’s market, with slightly lower prices.

Burnaby South: With the sales-to-listing ratio at 61% in July, local buyers may be surprised that sales were down 12% from a month earlier and 38% below July 2021, at 126 transactions. Yet, prices are also down, posting the biggest drops in Burnaby this year. Detached house prices are down 7.2% from June 2022, at $2,108,600; townhouse prices are down nearly 5% at $990,500. July condominium benchmark prices were off 3.2% from three months earlier, at $778,600. New Listings in July were down 27% compared to June 2022 and 24% lower compared to July 2021. This is technically a seller’s market but it is leaning towards a buyer’s price advantage.

New Westminster: The July composite home benchmark price in the Royal City was $834,200 after falling 3.7% since April to the lowest price in Greater Vancouver, below even Maple Ridge and the Sunshine Coast, both of which are much further from Vancouver’s SkyTrain network. A detached house in New Westminster is now benchmarked at $1,487,200, down 8.2% from three months earlier. Condo apartment prices are holding steady at $661,500 as are townhouses, down just 0.7% from June 2020 at $945,300.

Total July sales reached 82 transactions, down 50% from a year earlier and 26% below June 2020. Total inventory is 293 listings, which equates to about a 4-month supply at the current sales pace, which is posting a sales-to-listing ratio of 55%. Buyers may find some lower-priced deals in New Westminster this summer, but we expect the market to firm in September.

Coquitlam: Total housing sales have cooled sharply, dropping 25% in July from a month earlier and down 51% from a year earlier. Blame it on the summer heat, perhaps, but new listings are also fading, down 23% from June. The sales ratio is sitting at 50% and there is about a 5-month supply of active listings in what has become a balanced market. Benchmark prices for detached houses have fallen 5.5% since April to $1,853,500. Townhouse prices have been dropping 2% per month since March to reach $1,080,700 in July. Half of the new listings sold in July and we expect family-friendly Coquitlam home sales to pick up after kids are back in school.

Port Moody: Total units sold in July were 45 – down from 57 (21%) in June 2022, and down 52% from July 2021. Active Listings were at 203 at month end compared to 161 at that time last year and 218 (down 7%) at the end of June; New Listings in July are down 31% compared to June 2022, but unchanged from a year earlier. Month’s supply of total residential listings is up to 5 month’s supply (balanced market conditions) and sales to listings ratio is 54% compared to 48% in June 2022. The composite benchmark price has slipped down about 2% from April to $1,197,300.

Port Coquitlam: Total units in July were 71 – down from 94 (24%) in June 2022 and 31% lower than in July 2021. Sales were also lower than in July 2020 and July 2019.
Active listings have held steady for two months at 212, representing a 3-month supply.
The sales ratio is at 52%. PoCo is having a quiet summer, but this remains a seller’s market with some bargain prices surfacing: the composite benchmark price has fallen 8.7% over the past three months to $946,100; and detached house prices are down 12% so far this year to $1,395,500.

Pitt Meadows: Pitt Meadows had been one of the hot markets during the pandemic, but things change. Total housing sales this July, at 22, were down from both May and June of this year and 44% below July 2021. Active listings were 91 at the end of July, nearly double the 54 in July of last year, and new listings are up 31% from a year earlier. Detached-house benchmark prices have been falling since January and were down 9.3% from April to $1,335,900 in July. However, with a sales-to-listing ratio of 45% – compared to a sizzling 100% a year earlier – and about 4-month’s supply of homes on the market, this remains a seller’s advantage in a slow summer.

Maple Ridge: The benchmark detached house price in Maple Ridge apparently peaked in January and has been dropping ever since, down 8.7% since April to $1,343,800, which is also 3.4% lower than the start of this year. We may see more price corrections. Total sales in July were down 20% from June 2020 at 110 transactions, and 43% lower than in July 2021. Meanwhile, active listings increased to 638, up from 386 in July 2021. Maple Ridge is balanced and leaning towards a buyer’s market, with the sales-to-listing ratio dropping to 38% and a 6-month’s supply of homes for sale.

Ladner: Ladner is remaking its downtown and the waterfront village has perhaps too many summer distractions since homebuyers took a breather in July. Housing sales dropped 55% from month earlier and were down 67% from July 2021, one of the biggest declines in the Metro region. Total listings are rising and the sales-to-listing ratio is at 32%. This is a buyer’s market, with the composite home price falling steadily for six months and down 1.7% from a month earlier in July at $1,169,300, with an estimated 9-month’s supply of homes for sale.

Tsawwassen: With the popular Southlands development, townhouses have been one of the top housing sectors in Tsawwassen this year. We were seeing multiple bids in April and May of this year. Buyers will have noticed that prices have dropped since, with the typical townhouse selling in July for $989,600, the lowest price since January and down 4.6% since April. Detached house prices are also at the lowest level in 2022, down nearly 8% from three months ago, to $1,595,700. This is reflected in a sales decline, with July transactions of 40 homes down 30% from a month earlier and 52% below July 2021. We consider this a balanced market, with a 6-month’s supply and the sale success ratio at 50% in July, down from a ratio of 89% in the hot market of July 2021.

Surrey: B.C.’s second largest city has seen a dramatic shift in its housing market this year. Starts of new condos and townhouses have plunged 75% this year, dropping from 2,105 in the first six months of 2021 to just 509 units so far in 2022. Condo starts fell 77% year-to-year, based on CMHC data. July detached sales were down a startling 64% from July 2021 and were down 25.4% from June 2020 as the average price dropped 5.8% month-to-month to $1,662,928. Listings are down from 30% to 63% from a year earlier in the six Surrey neighbourhoods, but prices are holding steady in the townhouse ($876,500) and condo ($540,651) sectors. We are calling Surrey a buyer’s market that could get very active over the next few months.

Kevin Skipworth, Partner/Broker and Chief Economist at Dexter Realty

Read

Sales and Listing Report for June 2022

On the other side of a storm is the strength that comes from having navigated through it. Raise your sail and begin.

Gregory S. Williams

Buyer’s emerging with a market advantage

Highlights of the June Report

  • Biggest drop in month-over-month house price Port Coquitlam down 5.9%
  • Biggest increase in month-over-month house price: West Vancouver, up 0.4%
  • Total housing starts are down 45% so far this year compared to 2021, at 24,531.
  • Composite home price in Greater Vancouver is $186,900 higher than in June 2020

It is not the change that we have seen in Metro Vancouver’s residential market but the speed of that change that has caught so many off guard. After two years of near-record sale and price increases, purchasers scrambling to top competing bids and a dramatic shortage of housing that has senior governments trying to speed new home construction, the current calm comes across as a bit unnerving.

Yet, when you dig down into the numbers, it reveals a very stable market that is gently shifting from a balanced environment to one favouring buyers – but not all markets are reacting the same. Still, the physiological effects should not be understated, and it will take some time for sellers and buyers to process it all.

We see it in homebuyers emerging into markets which are now tilted in their favour. Rather than facing multiple offers, they now enjoy multiple properties to choose from. Rather than concern about missing out, they can now be confident of getting into Canada’s most dynamic and rewarding housing market.

Half-way into this year, the June benchmark composite home price is $1,235,900, down 2% from May and 2.2% lower than three months ago. The benchmark is up 12.4% from a year ago, however, and is $186,400 higher than it was in June 2020 as the super cycle began.

There were 2,466 residential properties sold of all types in Greater Vancouver in June this year compared with 2,947 sold last month, 3,824 sales in June last year, 2,497 sold in June 2020 and 2,098 sold in June 2019 (the end of the last down cycle in the real estate market). These are not dramatic sale swings. June’s downturn in sales is a minor correction from the 10-year June average and was expected following three increases in the Bank of Canada lending rates since March. (A fourth is expected July 13).

The market remains active, just at different levels with the advantage now shifting to buyers. The lower end of the market is still a struggle for lack of inventory and continued strong demand, however.

The slowdown in sales is not yet creating a large surplus of homes for sale, as some sellers are holding off as they prepare for summer vacations with reduced COVID-19 restrictions and new housing starts remaining below demand.

June saw 5,410 new listings come to the Greater Vancouver market which was below the 6,491 added in May 2022 and less than the 5,981 new listings in June 2021. The number of new listings in June were 3.5% below the 10-year average (down from 4% above the 10-year average a month earlier). The total number of active listings rose to 10,839 at the end of June compared to 10,389 at the end of May.

The rate of increase was only 4% above the total in May compared to the 13% increase in active listings from April to May.

The inventory build-up is seen in the detached housing market, where the sales-to-active- listing ratio in June was 14.3%, as compared to 31.5% for townhomes and 30.2% for condo apartments.
In most areas and especially at higher price points, it is already a buyer’s market for detached houses. Vancouver’s Westside detached sector has a 10 month’s supply available currently, West Vancouver is sitting with 14 months of inventory, Richmond 8 months and Whistler/Pemberton with a 10 month’s supply. Again, on the higher-price side, Vancouver’s Westside has seen townhouses and condos go up to 5 month’s supply from 3 months. What a switch and opportunity from a year ago. Buyers, your time is now!

Outlier markets

As we have noted previously, outlier suburban markets that had led the sale and price parade are now seeing the biggest price corrections. Maple Ridge, Pitt Meadows, for example, saw the composite benchmark home price fall about 3.8% from May to June, compared to a 2% decline across all Greater Vancouver.

In the Fraser Valley, June benchmark detached house prices dropped 5.5% month-over-month in Cloverdale, 3.8% in White Rock/South Surrey and were down 4.4% in North Delta. In South Delta, the June median price for a detached-house price fell $100,000 from May to $1,499,000.

As pandemic measures ease, the revival of big-city events and more people returning to the office may convince more homebuyers to purchase closer to Vancouver, especially if city prices continue to moderate.

Other takeaways from the June market reveal the truth that real estate is regional, with contrasting performance among Metro municipalities.

  • Richmond sales in June are on par with May, townhouse sales were up 33% and months of supply dropped down to 3. Active listings for townhouses dropped 8% from last month – an anomaly in the market.
  • New Westminster also saw active listing totals drop from May to June – new listings were down more so than other areas and demand was strong. One of the highest absorption rates in Greater Vancouver.
  • Coquitlam saw sluggish sales for townhouses in June while condo sales were strong resulting in a drop in the number of active listings.
  • Port Moody had the same number of total sales in June as May with 29% less new listings with townhouses back down to 1 month supply.
  • Port Coquitlam saw more sales in June, even in the detached market which resulted in a 20% drop in the number of active listings, but detached benchmark prices fell 5.9% from May, the sharpest decline in Greater Vancouver.
  • Ladner saw a drop in average prices of close to 25% with the lower end of the market driving it thus producing less volume of dollar sales.
  • Pitt Meadows and Maple Ridge continue to see increases in the number of active listings over last year – the outlier for this in Greater Vancouver.

Despite the moderating sales, the supply of housing remains a major concern. B.C. is seeing record levels of immigration and the provincial unemployment rate is 4.6% – which equates to near full employment and the second-best rate in Canada, so the demand for homeownership will increase. Yet housing starts in Metro Vancouver (which includes Langley and Surrey) were just 24, 531 as of June 1, down 45% from the 44,966 starts as of June 1, 2021 – and nearly 30% of new starts this year are rentals.

Here’s a summary of the numbers:

Greater Vancouver: Total June housing sales, at 2,466, were down 16% from May to the lowest monthly level this year, down 36% from June 2021. Active listings were at 10,839 at month end compared to 11,359 at that time last year and 10,389 (up 4%) at the end of May; New listings in June were down 17% compared to May 2022 and 10% lower compared to June 2021. Month’s supply of total residential listings is steady at 4 month’s supply (seller’s market conditions) and sales to listings ratio of 46% compared to 45%. The benchmark composite in June was $1,235,900, down 2% from May and 2.2% lower than three months earlier. Detached house prices have declined 1.8% over the past three months to $2,058,600, while June townhouse prices, at $1,115,600, were off 2.2% from May. Condo apartment prices were down 1.7% in June from a month earlier, at $766,300. Interestingly, the overall composite home price in Greater Vancouver is now about $210,000 higher than in June 2020, when the super cycle was beginning, but the number of sales is almost exactly the same.

Fraser Valley: The Valley market is experiencing a more dramatic change than Greater Vancouver. In June, the Fraser Valley Real Estate Board processed 1,281 sales, a decrease of 5.8% compared to May and a 43% decrease compared to June of last year. This June ended with a total active inventory of 6,474, a 4.7% increase compared to May, and 18.3% more than June 2021. Prices are also in play: the benchmark detached house price in June was down 3.5% from May at $1,653,000; townhouse prices dipped 2.7% from May to $894,300 and condo apartment prices fell 2.2% from a month earlier to $568,700.

“The combination of higher rates and low inventory will present a barrier to first-time buyers and could result in even slower sales over the coming months and erase price gains from the past 10 months or so,” cautioned Baldev Gill, chief executive officer of the Fraser Valley Real Estate Board.  Compared to June 2020, benchmark detached house prices in the Valley are up $658,500; townhouse prices are $304,700 higher and the typical condo apartment has increased in value by $133,400.

Vancouver Westside: For all of us who aspire to a detached house on the prestigious Westside, that potential has increased slightly over the past few weeks. With detached sales down 23% in June from a month earlier, to 448 transactions, the benchmark price has increased just 3.7% from a year ago, the lowest for detached houses in Greater Vancouver markets. At $3,499,700, the benchmark price was down 1% from three months earlier. While shifting to a buyer’s market in June, the detached house market remains tight, with new listings down to 206 houses in June from 253 a month earlier. Meanwhile total residential sales on the Westside in June reached 448, down 21% from June 2021, with both townhome and condo apartment sales lower than a month earlier. The median townhouse price was $1,405,0000, while 323 condos sold at a median of $828,000. The total inventory of residential listings is up to a 6 month’s supply and the sale-to-listings ratio in June was 42% compared to 46% in May 2022 and 48% in June 2021.

Vancouver East Side: More detached houses are selling on the East Side than any other market in Greater Vancouver, with 77 transactions in June at a benchmark price of $1,904,000, a price down 2.2% from a month earlier and about $1.5 million less than in the neighbouring Westside and less expensive than houses in Richmond, the North Shore and Port Moody. With a relatively large inventory, with 253 new listings in June, this is a welcoming market with perhaps the best upside potential in the region. The new Vancouver Plan envisions higher density close to the new Broadway Skytrain and Millennium Line which will fuel detached lot assemblies and higher house prices on the East Side. Total residential sales in June, at 265, were down 17% from May and 41% lower than in June 2021. Condo apartment sales lead the East Side market, with 1,058 units sold in the last six months, including 137 in June at a median price of $680,000, a price that is higher than in May 2022 and from a year earlier, which is rare in Greater Vancouver. This remains a seller’s markets, despite active listings rising from May to 1,210 homes to June. June’s sales-to-listing ratio was a healthy 46% and new listings slipped 15% compared to a month and a year earlier.

North Vancouver: Existing condos and apartments may be the best strata buy in North Vancouver District because new “climate ready’ building codes will make construction more expensive. District council decided July 4 that anyone seeking to rezone a lot for higher-density housing will have to show an accounting for the embodied carbon in their project, which will be monitored over the life cycle of the project. This new policy, combined with strict new ventilation and air conditioning regulations will add considerable cost to new strata and rental buildings. (Wood emits less carbon than concrete, but wood prices have soared this year.) North Vancouver condo sales were down sharply in June, dropping to 97 transactions, down from 154 in May and 135 in June 2021. At $819,600 in June, the benchmark price for a condo was down 2.6% from a month earlier. Townhome prices are also tracking lower, down 4.3% from three months ago, to $1,347,200. Detached-house prices, benchmarked at $2,325,800, are down nearly 4% over the past three months. The supply of total residential listings is up to 3 months in this modest seller’s market, where the sales-to-listings ratio is running at 43%.

West Vancouver: Despite the turmoil in the Lower Mainland market, West Vancouver’s detached house prices appears bullet-proof. The benchmark house price in June was $3,490,000, up 5.3% from three months earlier to lead Metro Vancouver in price appreciation. Detached house sales in West Vancouver, at 32, were down from 46 in May. In the first six months of this year, 284 detached houses have sold, down from 405 in the same period last year. West Vancouver is now a buyer’s market for detached houses. There is in fact a swelling inventory of West Vancouver total listings, with a 10 month’s supply as of June and a sales-to-listing ratio falling to 30%, down from 42% a year ago.

Richmond: We have seen price reductions in Richmond recently, but the benchmark composite home price held fairly steady in June at $1,187,000, down just 1.2% from three months earlier. Total residential sales in June were 337, unchanged from May 2022 but down 29% from a year earlier.

Active Listings were at 1,380 at month end compared to 1,613 at that time last year and 1,385 (down 0.5%) at the end of May 2022. The inventory of total residential listings is steady at a 4 month’s supply (seller’s market conditions), with a sales to listings ratio of 54%.

Burnaby East: Burnaby East has the lowest detached house prices in Burnaby, and benchmark prices slipped again in June, dropping 3.8% from May after falling 6.1% over the previous three months. Total home sales in June were down 17% from May and nearly 50% lower than in June 2021. This is technically a seller’s market, with a 63% sales-to-listing ratio and lower inventory, with just 81 active listings as of the end of June for the second month in a row. Condo prices remain the highest in Burnaby, at $816,700 in June, but the benchmark price was down 2.3% from May 2022.

Burnaby North: Brentwood in North Burnaby is one of the largest high-rise condo construction sites in B.C., with the sixth tower now rising after the first five sold out. Grosvenor Canada is also developing 7.8 acres for 900 condos and 2,000 rental units. Condos are the big play in North Burnaby but the high supply has kept benchmark prices in check, dropping to $740,500 in June, virtually unchanged from three months earlier. Burnaby North detached house prices are holding firm at $2,128,000 in June, up 1.8% in three-months and 17.4% higher than a year earlier. Month’s supply of total residential listings is up to 4 month’s supply with a sales to listings ratio at a healthy 52% in this seller’s market.

Burnaby South: Total Units Sold in June were 144 – down 12% from May 2022, and down from 217 (34%) in June 2021. New Listings in June were down 7% compared to May 2022 and 20% lower compared to June 2021. The composite home price has been declining an average of 2.3% per month since April and is now at $1,149,100. There is an estimated 3 month’s supply of total listings and this seller’s market is seeing a sales-to-listing ratio of 51%.

New Westminster: Earlier this year, less than acre in uptown New Westminster zoned for high-density housing sold for $27.5 million – an indication of the potential being seen in the Royal City. We see this as promising market, especially right now. The composite benchmark home price is $845,300, down 2.4% from three months ago to the lowest level in Greater Vancouver. Condos are selling for $663,900, nearly $100,000 below the Greater Vancouver average; and detached house prices, at $1,541,100 in June, were down nearly 6% from April and down 4% from May. This is a technically a seller’s market, with a 60% sales-to-listing, but I would advise buyers to take a close look at New Westminster for true housing value.

Coquitlam: Total housing sales in June were 189, down 23% from May and 43% lower than June 2021. The composite home price, meanwhile, dropped 3.9% from May to $1,154,200, while detached prices fell by the same amount to $1,874,100.

Active Listings were at 642 in June, compared to 745 at that time last year and 642 at the end of May; The June sales-to-listings ratio was 51% compared to 53% in May 2022 and 72% in June 2021. This remains a seller’s market, despite recent drops in sales and prices.

Port Moody: Sales of detached houses were down 50% in June, to 14, compared to June 2021, but the detached house price remains 22% higher than a year ago at $2,201,300, the highest in the Tri-Cities. This reflects the higher values seen in the Belcarra neighbourhood. Port Moody remains very much a seller’s market. Total housing sales in June were 57 – the same as in May 2022, but down from 40% from June 2021. Active Listings were at 218 at month end compared to 203 at that time last year and 209 at the end of May; Month’s supply of total residential listings is steady at 4 month’s supply and the sales-to-listings ratio is 48% compared to 34% in May 2022.

Port Coquitlam: Detached house prices have been tracking down for three months and dropped 5.9% from May to a June benchmark of $1,427,900. Condo prices are holding firm at $648,300, virtually unchanged since March. Total housing sales in June reached 94, up from 91 in May 2022, but down 33% from June 2021, The inventory of total residential listings is down to a 2 month’s supply and the June sales to listings ratio of 61% compares to 43% in May 2022 and 84% in June 2021 in this seller’s market.

Pitt Meadows: The composite home benchmark price was down 3.9% in June from a month earlier, at $988,000, after tracking down 2.1% per month since the end of March. Total units old in June were 23 – down from 24 (4%) in May 2022 and down from 60 (62%) in June 2021. Active listings were at 98 at month end compared to 65 at that time last year and 84 (up 17%) at the end of May. June’s sales to listings ratio was 38% compared to 30% in May 2022 and 73% in June 2021 in this calming market.

Maple Ridge: The housing market has cooled considerably, with total sales down 45% in June from the same month last year and falling 24% month-over-month in June to just 135 transactions, Detached house prices dropped 7.1% from March to $1,379,700. June townhouse prices are down 3% from May at $833,400, with condo prices down 1.8% to $564,300. New listings in June were down 10% compared to May 2022, but up 49% compared to June 2021. The sales-to-listings ratio was 32% in June, compared to 39% in May 2022 and 89% in June 2021.

Ladner: Total homes sold in June were 29 – up from 28 (4%) in May 2022 but down from 52 (44%) in June 2021. The composite home price in June, at $1,189,200, was down 3.6% from May but still 16.6% higher than a year earlier. Month’s supply of total residential listings is steady at 4 month’s supply (seller’s market conditions) and sales to listings ratio of 53% compares to 42% in May 2022 and 64% in June 2021.

Tsawwassen: This is primarily a detached market, but detached house prices fell 2.7% in June from a month earlier to $1,687,700. Total housing sales in June were 40, down 9% from May and a sharp 43% drop from June 2021. Total active listings had been holding steady at 175, but new listings dropped 30% from May and were down 21% compared to Jube 2021.The sales-to-listing ratio is a respectable 51%, as it appears that the seller’s advantage is holding.

Kevin Skipworth, Partner/Broker and Chief Economist at Dexter Realty

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Sales and Listing Report for May 2022

“Life is a succession of lessons which must be lived to be understood.”

Ralph Waldo Emerson

Faith Trumps Fear in This Market Cycle

Highlights of the May Report

• Is a buyer’s market looming in Metro Vancouver? 

• Vancouver detached house sales down 42% year-over-year

• Fraser Valley sales drop 54% from a year earlier

• Stress test increased on June 1: could touch near 7%

• There are more than 16,000 homes now listed for sale in Metro Vancouver (10,400 in Greater Vancouver)

We are not statistically into a buyer’s market in Metro Vancouver but, for all the right reasons, this is when smart buyers are becoming active.
As of the end of May there were 10,389 homes listed for sale in Greater Vancouver, including more than 6,400 new listing, the most generous supply in months and the answer to the hopes of homebuyers and economists who had been screaming for more inventory. But it’s still not enough. In the Fraser Valley, May listings had more than tripled from December 2021, with 6,183 homes on the market, up 14.2% from a month earlier.

The new supply is welcomed and needed because in the 12 months ending December 31, 2021, B.C.’s total population grew by 100,566 mostly due to international migration. Immigrants accounted for an increase of 67,141 while net interprovincial migration added another 33,656 to B.C.’s population growth. This means that, on average, B.C. is welcoming more than 8,300 newcomers every month – and an estimated 90% of them settle in the Lower Mainland.

Aside from a welcoming climate and natural beauty, migrants are drawn to B.C. by one of the lowest unemployment rates in Canada and a projected 2022 economic growth of 4.3%, one of the highest in the country.

Despite the influx of people, a combination of price fatigue and higher interest rates slowed housing sales across Greater Vancouver in May compared to the frenzied record-setting pace of 2021. With 2,947 transactions, May 2022 sales were 33% below May of 2021 and nearly 10% lower than in April 2022, which in turn had been 34% lower compared to a month earlier.

Fraser Valley sales in May had dropped 54% from a year earlier, to just 1,360 transactions. This has helped to increase the supply of existing houses and thank goodness because new home starts across Metro Vancouver, which includes Surrey and Langley, were down 22% as of May 1 from a year earlier to only 6,924 units.

May benchmark composite home prices, meanwhile, were just 0.4% lower than a month earlier and up nearly 15% from May of 2021, at $1,261,100. The Fraser Valley saw the first month-over-month home price contraction since September 2019. This market calming was expected, even forecasted here two months ago, but it still has caused a degree of panic in some sectors of the housing market. Let’s take a deep breath here. This is not some global economic crisis, such as the 2008 financial meltdown, or the 2016 and 2018 downturns that were coldly engineered by government policy meant to stifle housing demand.

What we are now seeing is a natural market reaction. The best solution to high prices is high prices, because they eventually stop consumers from buying a product believed to be overpriced. In this case, it is largely the perception of suburban home prices and a sharp increase in lending rates that has halted the most dramatic sales and price increases ever seen in Metro Vancouver. I believe that the current dip in the market is transitory and will perhaps be even shallower than the three corrections we have seen over the past two decades.

And, just as in those cases, those who bought in the dip rode the market to new price and sales highs.

In May of 2008, with Greater Vancouver sales down 34% year-over-year and headlines blaring recession warnings, the benchmark detached house price was $771,250 and a typical condo apartment sold for $389,600. In May 2018, with sales down 35% year-over-year after the introduction of 20% foreign-homebuyer tax, the speculation and vacancy tax, a super property tax on expensive homes and the federal mortgage stress test, the composite benchmark price for residential properties in Greater Vancouver was $1,094,000; the typical detached house sold for $1,608,000.

This May, the composite benchmark price is $200,000 higher than in 2018 and typical detached house is worth $2,093,000, nearly $500,000 more than four years ago. We are not technically into a buyer’s market, since the sales-to-active listing ratio is 29.2% (it is 18.3% for detached houses) in Greater Vancouver and 22% in the Fraser Valley, but for those with their eyes wide open are seeing the best buyer conditions in at least three years. As Bob Dylan once cautioned, changing times means those who are first will later be last and that was apparent in Metro Vancouver’s May housing market. Frankly put, it is suburban markets which are seeing the biggest contraction in home sales and prices.

Maple Ridge, which was posting the highest sales and price increases a year ago, had the largest month-over-month composite price decline in Greater Vancouver in May, dropping 2% from April and it was the only market where prices are now lower than three months ago. May sales of detached houses in Maple Ridge decreased 48% from a year earlier and total sales are down nearly 15%.

Pitt Meadows’ total sales dropped 47% in May, year-over-year. Price exhaustion is kicking in, especially in Pitt Meadows and Maple Ridge with average prices up about 34% year-over year. These areas are likely to be more impacted by interest rate increases as buyers try to stretch their budget to get more. But you can only push so far.

And the push back for some buyers, such as young first-time buyers, became rougher on June 1 as the mortgage stress test was increased to 5.25%, or 2% above the five-year fixed mortgage rate, whichever is higher. As we write this, the typical five-year rate at big banks is 4.59%, which translates to a stress test qualifying rate of 6.59%.  This will sideline some homebuyers in the short term, at least.

For all buyers, however, the increased supply of resale listings, flatlining prices and a lack of new housing starts means that right now is the time to be seriously shopping the market and negotiating the best deal possible. Buyers are not yet in the driver’s seat, but the market is steering in that direction.

Here’s a summary of the numbers:

Greater Vancouver: Total housing sales in May were down 10% from April and 33% lower than in May of 2021, at 2947 transactions. The composite benchmark price for all homes was $1,261,1001. This represents a 14.7%c increase over May 2021 and a 0.3% decrease compared to April 2022. This marks the first month-to-month decline in composite home prices since the autumn of 2019. Active Listings were at 10,389 at month end compared to 11,483 at that time last year and 9,176 (up 13%) at the end of April; New Listings in May were up 4% compared to April 2022. The supply of total residential listings is up to 4 month’s (seller’s market conditions) and the sales to listings ratio is 45% compared to 52% in April 2022, and 60% in May 2021.

Vancouver Westside: There is now a healthy 7-month supply of detached houses and 4-month supply of all homes on the Westside, as sales declined. Total May transactions, at 582, were down 27% from year earlier and 5% lower than in April 2022. The composite benchmark home price was down 0.6% from April 2022 and the benchmark detached house price is 1.2% lower at $3,490,000. Condo apartment were the only sector with rising prices month-over-month, up a modest 0.6% to $884,900. Total new Listings in May were down 0.5% compared to April 2022 and down 14% compared to May 2021. The sales-to-listings ratio was 46% compared to 48% in April 2022 and 50% in May 2021 in what remains a weakening seller’s market.

Vancouver East Side: May total sales, at 318, were down 10% from April to the lowest level since January, which is reversal of a normal market. Overall home prices, at $1,249,000, were 0.3% lower, month-over-month, but remain nearly 13% higher than a year earlier. New listings in May were up 4% compared to April 2022 and down 18% compared to May 2021. The supply of total residential listings is up to 4 month’s supply (seller’s market conditions). The sales-to-listings ratio in May was 45% compared to 53% in April 2022 and 56% in May 2021.

North Vancouver: North Vancouver was the outlier performer in May as more properties sold compared to April, with apartment sales up 23% leaving it with just 1 month supply of condos. Total sales in May were 280, up 2% from April 2022, but down 22% compared to May 2021. The benchmark detached house price has been tracking down for 3 months and settled at $2,368,600 in May. Condo prices continue to increase, up a further 1.4% from a month earlier, to $841,600. Total active Listings were at 525 at month end compared to 677 at that time last year and up 6% at the end of April 2022. The sales-to-listings ratio is 58% unchanged from April 2022 and nearly equal to the 60% in May 2021 in what remains very much a seller’s market.

West Vancouver: The most exclusive detached housing market in B.C. is proving itself nearly immune from rising lending rates and higher prices that bedeviled lesser markets in May. Sales of houses were down just 9 units from April but the 46 sales this year were at a median of $3,322,500, $100,000 higher than in April and nearly $200,000 higher compared to May of last year. Total sales in May, at 69, were down 23% from a year earlier. Active listings were 568 at month’s end compared to 611 at that time last year and up 13% from April. New Listings in May were down 9% compared to May 2021. The supply of total listings is up to 8 month’s supply and the sales-to-listings ratio is 28% compared to 30% in April 2022 and 34% in May of last year. Despite the lofty prices, West Vancouver is now seen as a buyer’s market.

Richmond: We were seeing a few price reductions near the end of May as total sales dropped 20% from a month earlier and were down 32% year-over-year, to 341 transactions in the month. The benchmark price for a detached house was nearly 1% lower in May than a month earlier, at $2,178,300. The benchmark price for a condo apartment, which dominated May sales, was up 0.9% from April 2022 at $739,000. Condo sales are tracking lower, however, and won’t be helped by the hike in the mortgage stress test rate on June 1. Total residential new listings were up up 6% compared to April 2022 but down 3% compared to May 2021. The sales to listings ratio also slipped, down to 42% in May as compared to 56% a month earlier.

Ladner: Ladner saw May housing sales drop 43% compared to a year earlier and 18% from a month earlier, to just 28 units as the sales-to-listing ratio fell to 42%, below even pre-pandemic 2019. Meanwhile, active listings increased 23% from a month earlier to 106 at the end of May. Benchmark home prices have flatlined for three months. The typical detached house sold in May for $1.545,000, down 0.1% from a month earlier. There is about a 4-month’s supply of homes on the market.,

Tsawwassen: Sunny Tsawwassen experienced a 44% sales decline in May from a year earlier, with sales also down 3% from April 2022, at 44 transactions. The composite home price was up a slim 0.7% from a month earlier, at $1,353,600. Active listings were at 165 at month end compared to 182 at that time last year and 130 (up 27%) at the end of April; New Listings in May were up 38% compared to April 2022. May’s sales to listings ratio of 39% compared to 56% in April 2022.

Burnaby East: May total housing sales were down 44% in May compared to May 2021 and, at just 30 transactions, were 25% lower than in April. The composite home price was 0.3% lower than a month earlier, led by 0.7% decline in detached house prices to a benchmark of $1,931,700, the lowest house price in Burnaby. The supply of total residential listings is up to a 3 month’s supply and the sales to listings ratio in May was 47% compared to 58% in April 2022 and 68% in May 2021.

Burnaby North: Burnaby North was one of only two markets with more sales in May compared to April, driven by the townhouse and apartment market – a testament to the popularity of this part of Greater Vancouver. The benchmark townhouse price continued to ascend, rising 3.1% from April – the largest increase in Greater Vancouver. Typical condo prices rose 0.8%, month-to-month, to $750,800, the lower condo price in Burnaby. Detached house prices, though, dropped 0.4% from April. This is a strong seller’s market with the sales-to-listing ratio running at 53%, with 175 sales in May and new listings down from both April 2022 and May 2021.

Burnaby South: The rapid appreciation in detached house prices halted in May as benchmark prices dropped almost 1% from a month earlier after rocketing 21.5% over the past year. Still, at a $2,318,000 benchmark, these are Burnaby’s most expensive houses. Total housing sales in May, at 163, were down 12% from April and nearly 30% lower than in May 2021. The supply of total residential listings is steady at 3 month’s supply and sales to listings ratio is a solid 54% in this seller’s market.

New Westminster: The Royal City is one of the suburban markets that was posting impressive sales numbers during the pandemic, but that changed in May. Total sales, at 117, were down 40% from May of 2021 and 13% lower than in April 2022. The overall sales-to-listing ratio dropped to 47% in May, still strong, but well below the 65% in April or the 72% in May of last year. The overall composite benchmark home price was down 0.5% from April to $862,400, the lowest level in Greater Vancouver. This remains a seller’s market, but buyers may soon take the wheel.

Coquitlam: Total housing sales in May were down 39% from a year earlier and 13% from a month earlier. Benchmark prices are down about 1%, month-over-month, across the board to a composite home price of $1,200,600. New Listings in May were down 5% compared to April 2022 and 19% lower than in May 2021. Coquitlam has been one of the stronger markets and buyers are advised to buy the dip. The sales-to-listing ratio is a steady 53% and Coquitlam has a strong upside in all housing sectors.

Port Moody: Port Moody has finally seen an increase in supply, with active listings at 209 as of the end of May, up 48% from a month earlier, with new listings 13% higher than in May 2021. This was partially due to sale slowdown. With 57 transactions, May sales were down 44% from a year earlier. The benchmark composite home price was nearly unchanged from April at $1,225,600, but the sales-to-listing ratio slumped to 34%, down from 55% in April 2022 and the lowest level in at least three years.

Port Coquitlam: Total housing sales in May, at 91, were down 22% from April 2022, and down 45% from May 2021. Active listings were 229 at month’s end compared to 270 at that time last year and up 31% from April 2022. The composite home price dropped month-to-month for the first time since the pre-pandemic, down 1.2% from April at $1,023,900, led by townhouse and detached house prices. The sales-to-listing ratio in May was 43%, down from 62% in April and 66% in May of last year. This market is slowing, and modest price reductions may continue.

Maple Ridge: Total housing sales reversed in May, dropping 38% from a year earlier and down 7% from April to 178 transactions. After posting a 25.3% price increase over the past 12 months, the benchmark composite home price in May dropped 2% in May from April, the biggest month-over-month decline in Greater Vancouver. Still, this remains a seller’s market, with just a 3-month supply of listings and a sales-to-listing ratio of 39%, up from 36% in April.

Pitt Meadows: With a 28% increase in benchmark prices from a year ago, Pitt Meadows detached houses set the highest price increase this year, but prices slipped 1.2% from a month earlier in May to $1,454,800. Condo apartment price were down 0.5% from April to $649,500, while townhouse values were unchanged at $922,900. Active listings were at 84 at the end of May, compared to 63 at that time last year and 51 at the end of April. The sales-to-listings ratio of 30% compares to 77% in April 2022 and 84% in May 2021 in this cooling market.

Surrey: Housing sales in every sector were down dramatically in May, with detached-house transactions dropping 67.7% from May 2022 and down 25.7% from April. Townhouse sales were 49% lower, year-over-year, and sales of condo apartments dropped 42% from a year earlier and 18.9% from April. However, prices held fairly steady. The average detached house price, at $1,848,699, was down 2.7% from April 2022. Condo prices took the biggest hit, dropping 8,4% from April to $592,180, while the average townhouse price slipped 5.5% to $908,527.

Kevin Skipworth, Partner/Broker and Chief Economist at Dexter Realty

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Sales and Listing Report for April 2022

“Become a student of change. It is the only thing that will remain constant.“

Anthony J.

Welcome back to a balanced market. Don’t be afraid

Highlights of the April Report

• Immigration at record high; housing starts down 41%
• April housing sales down 34% from a year earlier
• Price resistance as detached house tops $2.1 million
• Markets where detached house prices are down from March 2022: 5
• Markets where detached house sales are down from a year ago: 14

As we noted here last month, the residential super cycle is over in Metro Vancouver. April’s action confirmed that, after two years of blistering sales and price increases, we are back to more balanced conditions. As befitting a housing market that has defied all traditions since March 2020, the current calming is happening in midst of what, conventionally, is the most active selling season of the year.

The president of the Fraser Valley Real Estate Board, which saw April housing sales plunge 45.7% year-over-year and drop 36.6% from a month earlier, summed up what is happening:

“We would typically see a flurry of activity around this time of the year,” Sandra Benz said. “However, that’s not been the case so far. While it’s still too early to say whether this trend will endure, the slowing of sales combined with an increase in active listings is helping to restore a semblance of balance to the market.”

Just as very few predicted the latest super cycle, no one really knows how long the current moderation will last. There are clues to suggest this will not be a temporary lull. It will likely last until rising in-migration levels collide with a consistently low inventory of homes available.  

So far this year, in-migration is near record highs while housing starts have fallen 40% from a year ago. In the past couple of months, a combination of factors helped to slow Metro housing sales. These include clumsy government threats and actions, an increase in bank lending and mortgage rates and a push back against record-high home prices. While the former affected markets across Canada, the latter – price resistance – was seen locally first in the Fraser Valley and outlier B.C. markets before it surfaced in Greater Vancouver.

In Kelowna, for example, March sales were down 25% after prices soared 30% from a year ago. The Fraser Valley has experienced a near 50% drop in sales once prices had increased by more than a third from a year earlier.

In Maple Ridge, which had been posting the highest year-over-year price increases in Greater Vancouver, sales plunged 37% in April from a year earlier.

Across Greater Vancouver it is no coincidence that April sales of detached houses have fallen faster than any other type of residential property, down 41.9% from a year ago, after the benchmark price leapt 21% year over year to $2,139,200.

On the bellwether West Side of Vancouver, sales of detached houses dropped to just 93 houses in April – down from 124 a month earlier and 139 in April 2021 – after the median price increased $258,000 from March 2022 to a record high of $3,768,000. 

Since March, government measures to cool demand are mostly threats, but they have had an impact. The City of Vancouver plans to increase its empty home tax to 5% from 3%; the province plans to bring in a homebuyer “cooling-off” period to fix a problem that no longer exists; and the feds plan to ban foreign home buyers for two years, just as it is attempting to attract a record number of new immigrants.

None of these measures are needed and all are counterproductive, but they have helped to scare some buyers and builders out of the market.  

Since investors are very active in the new condominium sector, government action and plans to tax pre-sales and speculation will have a direct detrimental impact on multi-family development. Eventually, however, the fact that the housing supply is not close to keeping pace with population growth, largely due to immigration, will kick off another super cycle in Metro Vancouver housing sales and prices. This may not take long. 

In the first quarter of 2022, total housing starts in Metro Vancouver had fallen to 4,308 units, down a shocking 41% from the same period last year.  

However, in the first quarter of 2022, B.C. also welcomed a net increase of 14,885 persons, including 12,606 immigrants.

In 2021 B.C. net international migration accounted for an increase of 67,141 while net interprovincial migration added another 33,656. Most of these 100,00 plus newcomers settled into Metro Vancouver, where only 26,013 homes were built last year, including just 6,600 rentals.

Townhouses: The effect of low supply and high demand is and will be felt acutely this year in the townhouse sector. Townhouses are very popular but just 481 have started construction this year across Metro Vancouver, down from 773 at the same time in 2021. Only 25 new townhouse units have been started this year in the entire City of Vancouver. 

The benchmark price of a townhouse in Greater Vancouver is now $1,150,500, up 25% from April 2021 and nearly 12% higher than in February 2022. The low supply and high prices combined to drive townhouse sales down 40% in April compared to the same month last year. Without a dramatic supply increase, which seems unlikely, townhouse prices will keep climbing.

Here’s a summary of the numbers:

Greater Vancouver: Total housing sales in April, at 3,281, were down 26% from March and 35% lower than in April 2021.  But they were 193% higher than in April 2020, as the pandemic became a reality, and 77% higher than in April of 2019, so this April was still a strong month for sales. Active Listings were at 9,176 in April, compared to 10,749 at that time last year and 7,970 (up 15%) at the end of March 2022. If we take out the anomaly of 2021 and 2020, the number of new listings in April are only 2% above the 10-year average, as normal as normal can be. This is still a seller’s market with an overall sales-to-listing ratio of 52% and just a 3-month supply of total inventory. and the composite benchmark price hitting a fresh high of $1,374,500. This represents an 18.9% price increase over April 2021 and a 1% increase compared to March 2022. 

Fraser Valley: The Fraser Valley Real Estate Board processed 1,637 sales in April, a decrease of 45.7% compared to April 2021 and a 36.6% decrease compared to March 2022. The Valley saw 3,622 new listings, down 27.8% compared to April 2021, and a decrease of nearly 21% compared to March 2022. The total month-end active inventory in April, however, was 5,387, 14.6 per cent higher than in March and up 38.3% from April 2021. Benchmark prices are up an average of 1 per cent from March 2022 but about 38% higher than a year earlier, with detached houses selling in April at $1,713,000; townhomes at $902,500 and condominium apartments at $649,500, all record highs. With Fraser Valley sales falling for the second straight month, we expect to see price corrections coming.

Vancouver Westside: The Westside now has a healthy 7-month supply of detached houses, reflecting lower sales in the past few months, at least partially due to sticker shock. The April detached house benchmark was $3,643,100, which, despite the sales slowdown, is 2%, or $72,800, higher than in March 2022. Houses accounted for only 93 of the 619 transactions in April, which was dominated by 465 condo apartment sales that sold at a median of $887,500.  Townhouse sales accounted for 60 transactions from 148 listings, at a median price of $1,614,950.  Total active listings were at 2,313 at month end compared to 2,434 at that time last year and 2,065 (up 12%) at the end of March. New Listings in April were down 6% compared to March 2022.

Vancouver East Side: As the median price of an East Side detached house crested over $2 million for the second month, detached sales plunged 50% from a year earlier and dropped 36% from March 2022, to just 110 transactions. Sales of condominium apartments were also lower, at 178 units, as the median condo price held steady from a month earlier at $680,000.  The sales-to-listing ratio for townhouses dipped to 41%, the lowest level this year, even as the median price of the 65 sales dipped to $1,350,000, down from a four-month average of $1.4 million. Active listings were at 1,038 at month end compared to 1,244 at that time last year and 946 (up 10%) at the end of March; New Listings in April were down 8% compared to March 2022 and the supply of total residential listings is up to 3 months in what is cooling seller’s market.

North Vancouver: Despite pressure from senior levels of government to bypass public hearings on housing projects that already fit the official community plan, North Vancouver City recently pushed two proposals with a total of 118 strata units to such hearings. So far this year just 390 multi-family units have started in the city and most of these were rentals. Sales in April, at 275, were down 42% from a year earlier and 20% lower than in March 2022 Active Listings were at 497 at month end compared to 624 at that time last year. New Listings in April were down 3% compared to March 2022, down 30% compared to April 2021, with the overall sales to listing ratio at 58%. The composite home benchmark in North Vancouver is $1,438,000 and the typical detached house sold in April at $2,231,000, both virtually unchanged from March.

West Vancouver: Total housing sales in April, at 72, were down 18% from March and 38% lower than in April 2021 in a fairly balanced market. West Vancouver is primarily about detached houses, which accounted for 54 of the April sales. The benchmark detached house price is $3,380,200, which was up 2% from a month earlier. Active listings were at 502 at April’s end, compared to 554 at that time last year and 423 (up 19%) at the end of March 2022. New listings were up 32% compared to March but down 16% compared to April 2021. Total supply of residential listings is up to 7 months, with a relatively modest sales-to-listings ratio of 30%. 

Richmond: Richmond has seen new townhouse active listings double since January, with detached houses now at 5-months supply while townhouses remain at 2-months supply. If April sales are an indication, supply will remain healthy. Total sales, at 557, were down 24% from March 2022 and 36% lower than in April 2021, while active listings were up 13% from March 2022 to 1,197. The sales-to-listing ratio is holding at 56%, down from 63% in March but the same as in April 2021. Condo apartments led the April market, accounting for 223 of the 426 transactions. The typical condo now sells for a median of $675,900, compared to $1,960,000 for a detached house and $1,165,000 for a Richmond townhouse.

Ladner: Outlier markets are seeing the largest sales slump and Ladner was no exception as April transactions dropped 39% from March 2022 to just 34. There could be price resistance, as the benchmark detached house price fell 0.6% from March to $1,517,800, the first month-over-month decline in more than two years. Condo apartment prices rallied, however, increasing 6.2% month-over-month to $692,600, reflective of the new condo construction in 2021. Total active listings were 86 at month end in April compared to 117 at that time last year and 79 at the end of March. The total supply of residential listings is up to 3 month’s supply, with a sales-to-listings ratio at 61% compared to 63% in March 2022 and 80% in April 2021.

Tsawwassen: Total housing sales in April at 46 had fallen 41% compared to a month earlier and down 44% from April of last year. The benchmark detached house price is $1,688,800, 25.6% higher than a year ago but up just 0.9% from March 2022. Active Listings were at 130 at month end compared to 188 at that time last year and 105 (up 24%) at the end of March. The supply of total residential listings is up to 3 months. April’s sales-to-listings ratio of 56% compares to 82% in March 2022 and 66% in April 2021. This market is cooling but sellers still hold the advantage.

Burnaby North: This market posted one of the largest sale declines in April, with total transactions down 46% from a month earlier and 48% below the pace in April of 2021.  Just 164 homes sold in April, while active listings were up 33% from March at 419. The detached house sector posted the second-lowest sales this year, at 38, which may reflect price resistance as a house is now selling for an average of $2,048,300. But the condo market is also waning with the 111 April sales and average price, at $754,034, both at the lowest level since January. The total sales to listing ratio is running at 47%, well below the 72% in March and the 68% a year ago.

Burnaby South: Total units sold in April were 186 – down from 213 (-13%) in March 2022, and down 31% compared to April 2021. The average price of the 36 detached houses sold in April w as $2,304,966, down marginally from a month earlier. Townhouse average prices were up slightly from March, at $1,245,205 based on 60 sales in April. Condo apartment sales, at 116, were down from 142 a month earlier but the average price hit a new high of $808,030. The supply of total residential listings is now at 3 month’s supply, and the April sales-to-listings ratio was 55%, compared to 59% in March 2022. 

Burnaby East: Just 40 homes sold in April, down 29% from March 2022 and 47% below April of 2021, but active listings were also lower, down to just 67 compared to 112 in April of last year. New listings were down 38% year-over-year but up 3% from March. Detached house sales dropped to 11 transactions, the lowest since January 2022, at an average price hit $2,126,808. The supply of total residential listings is up to 2 month’s supply (seller’s market conditions) and April’s sales- to-listings ratio was 58% compared to 84% in March 2022 and 68% in April 2021.

New Westminster: The Royal City saw housing sales drop to 134 in April, down 34% from a month earlier and 23% below sales in April 2021. Each sector was down, including the condo apartment market, which posted 102 sales at a median price of $630,000. There were 24 detached housing sales, at a median of $1,701,500 and half of the 14 townhouses listed sold at just under $1 million each. Total new listings in April were down 21% compared to March 2022 and down 31% compared to April 2021. With the sales-to-listing ratio at 65%, there is only about a 2-month supply of homes on the market.

Coquitlam: April housing sales, at 279, were down 30% compared to March and 11% lower than in April 2021, but Coquitlam’s housing future appears solid, with several large new developments coming. These include the 91.5-acre Fraser Mills waterfront site where 5,100 strata homes and 400 rentals are planned, and new strata homes at Burke Mountain. New listings in April were down 20% compared to March 2022 and down 21% compared to April 2021. The benchmark price for a detached house reached $1,847,800, up 25% from a year earlier but virtually unchanged from March. Condo apartments are selling for $712,500 and townhouses are benchmarked at just over $1 million.

Port Moody: The giant Coronation Park development was reluctantly approved in April, but the city added a costly last-minute demand that 15% of the homes – about 400 units – be below-market rentals, so the project may be delayed again after years of debate. Meanwhile, April housing sales plunged 39% from March and were nearly 50% lower than in April 2021. The detached house price is now benchmarked at $2,314,900, the highest in the Tri-Cities. There is just a 2-month supply of total listings available in this seller’s market.

Port Coquitlam: Total units sold in April were 117 – down from 141 (-17%) in March 2022, and down from 167 (-30%) in April 202. New Listings in April were down 9% compared to March 2022 and 27% below that of April 2021. Detached house prices have flatlined at $1,614,600, unchanged from March 2022. The supply of total residential listings is steady at 1 month’s supply (seller’s market conditions) and April’s sales-to-listings ratio of 61% compares to 67% in March 2022 and 64% in April 2021.

Pitt Meadows: The Pitt Meadows market has calmed down but remains a seller’s advantage with just a 1-month supply of homes on the market and sales-to-listing ratio at a strong 77%.  April sales were 45 units, down 18% from March and just 6% below April 2021, which is a relatively strong performance. The benchmark price of a detached house dipped 1.5% from March, rare in Metro Vancouver, to $1,540,000. Total active listings were 51 at month’s end compared to 63 at that time last year and 53 at the end of March.

Maple Ridge: What was one of the hottest markets in 2021 has cooled this year, with April sales, at 166 homes, down 37% from March of this year and a 52% plunge from April 2021. The benchmark detached house price, however, increased a further 2.2% month-over-month to $1,447,600 in April, which is 31% above the price a year earlier. Maple Ridge townhouse buyers saw the benchmark price fall 1.5% from March to $889,200, while condo apartments were unchanged at $546,600. The supply of total residential listings is up to 3 month’s supply as April’s sales-to-listings ratio dipped to 36% compared to 60% in March 2022.

Surrey: Price resistance has surfaced in Surrey.  April detached house sales plunged 56.6% year-over-year and nearly 40% from March 2022, to 261, and the average house price dropped 3.9% from March to $1,898,677. This is the first such decline in years. Townhouse sales were down 56% from a year ago, to 225, and the average price was down 3.1% from March of 2022. April condo apartment sales also declined, dropping 28% from a month earlier and 18% from a year earlier, though the average condo price was up 1.8% from March 2022 at $581,879.

Kevin Skipworth, Partner/Broker and Chief Economist at Dexter Realty

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Sales and Listing Report for March 2022

“You may delay, but time will not.”

Benjamin Franklin

This housing cycle is ending. What’s next?

The sales super cycle that the Metro Vancouver housing market has been in for two years is ending. It is nearly over in Fraser Valley, where March sales were down 22.5% from a year earlier and average prices dropped nearly 6% from February 2022, and similarly in Greater Vancouver where home sales were down 25% from March 2021 and averages prices were down 13%. A sure sign that the lower end of the market is thriving more.

This does not mean a major market correction is coming. It does mean that we could be moving back to a calmer, more friendly environment for homebuyers, which would be a welcome relief to many. March saw a number of Greater Vancouver buyers moving quickly to purchase before the next round of lending rate increase, but we expect the sales and price increases to slow in the months ahead comparative to where we have been. Housing sales in March across Greater Vancouver totalled 4,405, down 25% from March 2021, but a 27% increase from February 2022 and 31% above the 10-year March sales average.

More listings were added in March, with 6,802 new listings, still down 20% from a year earlier but 20% above the 10-year average. There were 7,970 total active listings on the Greater Vancouver market at month end which further dropped to 7,851 at the start of April as some listings expired. The after-spring break activity brought an increase of listings to the market that will continue as we move through April.

However, we are still sitting with just a 2-month’s supply of homes available for sale in most areas, with North Vancouver, Burnaby, New Westminster, Coquitlam, Port Moody, Port Coquitlam, Tsawwassen, Pitt Meadows, Maple Ridge and Squamish all at or less than a 1 month’s supply. And while townhouses continue to be the most challenging type of property to find across the region, apartments are fast becoming a scarce product. Even on Vancouver’s West Side, there are only 2-month’s supply of apartments and areas such as Vancouver East and Richmond have dropped down to 1 month supply. It’s even worse in Pitt Meadows where this is half a month’s supply (7 apartments for sale, down from 22 last March), just over half a month’s supply in Maple Ridge and only 6 apartments available for sale in Ladner, again under 1 month’s supply. The number of apartment sales in Coquitlam in March were actually the highest we’ve seen in March at 211, eclipsing the previous high of 187 in March 2021.

It will take a surge in new listings to get this market back to balance, but the question is, will that happen and if so, when? Realistically we would need to see 15,000 to 18,000 active listings to get to a balanced market.

The rest of 2022 may look a lot like it did just before a global pandemic created the most dramatic counterintuitive housing boom this region has ever seen. We seem to forget that, in 2019, Greater Vancouver March housing starts had plunged 31% from a year earlier and were averaging about 1,800 transactions per month, less than half of what they are today. When 2020 started, we saw the market firing at the 10-year average. Perhaps average would be welcome to many.

The true test of the market will be over the next month as interest rates continue to rise, with the Bank of Canada making its next announcement on April 13. It’s a forgone conclusion that the overnight rate will increase. It just remains to be seen whether it will be up 0.25% or 0.5%, thereby increasing variable rate mortgages. Fixed interest rate mortgages have been on the rise with a 5-year interest rate now approaching 4%. Since the federal mortgage stress test qualifying rate is 2% higher, it will be nearly 6% on a 5-year rate. That negatively affects a borrower’s debt-service ratio and their purchasing power.

There are other signs of a cooling market. Continued lack of supply is keeping buyers from being able to find their next home and list their current one. Despite record-setting demand and prices, B.C. housing starts decreased by 4,000 to 31,300 new homes, seasonally adjusted, in February 2022 from a month earlier. Metro Vancouver home starts are down 23% so far this year, compared to 2021. A key reason is developers’ fear of proceeding with projects because of soaring construction costs, especially for wood frame multi-family.

Then there is the uncanny ability for the government to bring in new regulations just when they are not needed. The B.C. finance minister has confirmed that a mandatory ‘cooling-off’ period is coming as their way to protect buyers, especially when competing in multiple offers, which could very well be at a reduced level by the time the legislation is law. The rules will then stick around and simply frustrate buyers and sellers. This in effect will give a buyer a period of days to reconsider their offer and walk away from it. While no details were provided, a monetary penalty could be part of that ability to walk away, which in effect would lock in first time buyers and those without the resources to utilize that strategy. The other option is complete freedom to walk away, but imagine how many properties would be tied up in that process and the potential confusion of that. In an already supplied starved market, what purpose will this really serve? And through all this, there are still some that contend we don’t have a housing supply crisis and in fact supply is keeping pace with population growth. These two wrongs certainly don’t make a right. Mechanisms to supposedly limit demand and a contention that supply isn’t an issue will only further exacerbate the issues we see in the housing market.

Finally, we are seeing price exhaustion. This is apparent now in outlier suburbs, which had seen dramatic price hikes since 2020, but we will also see price increases slowing in central areas, at least through the first half of 2022. Prices can only go up so much.

If you thinking of selling, list now. If you are buying, enjoy the greater selection on the market.

Here’s a summary of the numbers:

Greater Vancouver: Total housing sales in March were 4,405 – up 27% from February 2022 and down 25% from March 2021. Active Listings were 7,970 at month end compared to 9,633 at that time last year and 7,062 at the end of February. New listings in March were up 22% compared to February 2022, but down 20% compared to March 2021. The sales to listings ratio of 65% compares to 62% in February 2022 and 69% in March 2021. The benchmark composite home price, at $1,360,500, is up 20.7% year-over-year and 3.6% higher than in February. A typical detached house now sells for an all-time high of $2,118,600, up 23.4% from March of 2021.

Vancouver Westside: Total Units Sold in March were 800 – up from 665 (20%) in February 2022, up from 445 (80%) in January 2022, down from 883 (9%) in March 2021, up from 467 (71%) in March 2020 and up from 333 (140%) in March 2019; Active Listings were at 2,065 at month end compared to 2,124 at that time last year and 1,942 at the end of February; New Listings in March were up 24% compared to February 2022, down 10% compared to March 2021, up 61% compared to March 2020 and up 37% compared to March 2019. Month’s supply of total residential listings is still at 3 month’s supply (seller’s market conditions) and sales to listings ratio of 59% compared to 61% in February 2022, 59% in March 2021, 55% in March 2020 and 34% in March 2019. The benchmark composite home price, at $1,469,200, is up 10.3% year-over-year and 2.7% higher than in February.

Vancouver East Side: Total Units Sold in March were 497 – up from 359 (38%) in February 2022, up from 257 (93%) in January 2022, down from 661 (25%) in March 2021, up from 297 (67%) in March 2020 and up from 174 (186%) in March 2019; Active Listings were at 946 at month end compared to 1,027 at that time last year and 891 at the end of February; New Listings in March were up 13% compared to February 2022, down 27% compared to March 2021, up 58% compared to March 2020 and up 44% compared to March 2019. Month’s supply of total residential listings is still at 2 month’s supply (seller’s market conditions) and sales to listings ratio of 68% compared to 55% in February 2022, 66% in March 2021, 64% in March 2020 and 34% in March 2019. The benchmark composite home price, at $1,348,800, is up 14.8% year-over-year and 3.4% higher than in February.

North Vancouver: Total Units Sold in March were 345 – up from 261 (32%) in February 2022, up from 143 (141%) in January 2022, down from 470 (27%) in March 2021, up from 204 (69%) in March 2020 and up from 165 (109%) in March 2019; Active Listings were at 432 at month end compared to 572 at that time last year and 380 at the end of February; New Listings in March were up 20% compared to February 2022, down 31% compared to March 2021, up 37% compared to March 2020 and up 25% compared to March 2019. Month’s supply of total residential listings is still at 1 month’s supply (seller’s market conditions) and sales to listings ratio of 70% compared to 64% in February 2022, 66% in March 2021, 57% in March 2020 and 42% in March 2019. The benchmark composite home price, at $1,418,900, is up 19.9% year-over-year and 3.2% higher than in February.

West Vancouver: Total Units Sold in March were 87 – up from 80 (9%) in February 2022, up from 45 (93%) in January 2022, down from 148 (41%) in March 2021, up from 56 (55%) in March 2020 and up from 34 (156%) in March 2019; Active Listings were at 423 at month end compared to 491 at that time last year and 417 at the end of February; New Listings in March were down 16% compared to February 2022, down 37% compared to March 2021, up 9% compared to March 2020 and up 9% compared to March 2019. Month’s supply of total residential listings is still at 5 month’s supply (seller’s to balanced market conditions) and sales to listings ratio of 47% compared to 37% in February 2022, 51% in March 2021, 33% in March 2020 and 20% in March 2019. The benchmark composite home price, at $2,677,500, is up 7.7% year-over-year and 2.7% higher than in February.

Richmond: Total Units Sold in March were 557 – up from 397 (40%) in February 2022, up from 340 (64%) in January 2022, down from 768 (28%) in March 2021, up from 337 (65%) in March 2020 and up from 178 (212%) in March 2019; Active Listings were at 1,076 at month end compared to 1,411 at that time last year and 924 at the end of February; New Listings in March were up 26% compared to February 2022, down 18% compared to March 2021, up 69% compared to March 2020 and up 31% compared to March 2019. Month’s supply of total residential listings is still at 2 month’s supply (seller’s market conditions) and sales to listings ratio of 63% compared to 62% in February 2022, 56% in March 2021, 64% in March 2020 and 27% in March 2019. The benchmark composite home price, at $1,249,500, is up 20.2% year-over-year and 3.0% higher than in February.

Burnaby East: Total Units Sold in March were 56 – up from 34 (65%) in February 2022, up from 25 (124%) in January 2022, down from 70 (20%) in March 2021, up from 27 (107%) in March 2020 and up from 17 (229%) in March 2019; Active Listings were at 59 at month end compared to 100 at that time last year and 56 at the end of February; New Listings in March were up 3% compared to February 2022, down 34% compared to March 2021, up 40% compared to March 2020 and up 31% compared to March 2019. Month’s supply of total residential listings is down to 1 month’s supply (seller’s market conditions) and sales to listings ratio of 84% compared to 52% in February 2022, 69% in March 2021, 56% in March 2020 and 33% in March 2019. The benchmark composite home price, at $1,282,300, is up 24.8% year-over-year and 4.0% higher than in February.

Burnaby North: Total Units Sold in March were 257 – up from 226 (14%) in February 2022, up from 142 (81%) in January 2022, down from 335 (23%) in March 2021, up from 130 (98%) in March 2020 and up from 77 (233%) in March 2019; Active Listings were at 315 at month end compared to 461 at that time last year and 283 at the end of February; New Listings in March were up 13% compared to February 2022, down 22% compared to March 2021, up 59% compared to March 2020 and up 57% compared to March 2019. Month’s supply of total residential listings is still at 1 month’s supply (seller’s market conditions) and sales to listings ratio of 73% compared to 72% in February 2022, 74% in March 2021, 59% in March 2020 and 34% in March 2019. The benchmark composite home price, at $1,262,100, is up 19.6% year-over-year and 3.2% higher than in February.

Burnaby South: Total Units Sold in March were 213 – up from 200 (7%) in February 2022, up from 150 (42%) in January 2022, down from 325 (34%) in March 2021, up from 143 (49%) in March 2020 and up from 97 (120%) in March 2019; Active Listings were at 395 at month end compared to 565 at that time last year and 312 at the end of February; New Listings in March were up 26% compared to February 2022, down 23% compared to March 2021, up 64% compared to March 2020 and up 117% compared to March 2019. Month’s supply of total residential listings is still at 2 month’s supply (seller’s market conditions) and sales to listings ratio of 59% compared to 70% in February 2022, 70% in March 2021, 65% in March 2020 and 33% in March 2019. The benchmark composite home price, at $1,192,400, is up 18.2% year-over-year and 3.0% higher than in February.

New Westminster: Total Units Sold in March were 204 – up from 159 (28%) in February 2022, up from 102 (100%) in January 2022, down from 245 (17%) in March 2021, up from 118 (73%) in March 2020 and up from 81 (152%) in March 2019; Active Listings were at 215 at month end compared to 345 at that time last year and 190 at the end of February; New Listings in March were up 15% compared to February 2022, down 22% compared to March 2021, up 30% compared to March 2020 and up 28% compared to March 2019. Month’s supply of total residential listings is still at 1 month’s supply (seller’s market conditions) and sales to listings ratio of 78% compared to 70% in February 2022, 73% in March 2021, 59% in March 2020 and 40% in March 2019. The benchmark composite home price, at $846,000, is up 23.0% year-over-year and 3.6% higher than in February.

Coquitlam: Total Units Sold in March were 400 – up from 264 (52%) in February 2022, up from 174 (130%) in January 2022, down from 462 (13%) in March 2021, up from 202 (98%) in March 2020 and up from 142 (182%) in March 2019; Active Listings were at 508 at month end compared to 574 at that time last year and 419 at the end of February; New Listings in March were up 36% compared to February 2022, down 2% compared to March 2021, up 55% compared to March 2020 and up 47% compared to March 2019. Month’s supply of total residential listings is down to 1 month’s supply (seller’s market conditions) and sales to listings ratio of 66% compared to 59% in February 2022, 74% in March 2021, 52% in March 2020 and 35% in March 2019. The benchmark composite home price, at $1,325,900, is up 27.7% year-over-year and 4.8% higher than in February.

Port Moody: Total Units Sold in March were 107 – up from 87 (23%) in February 2022, up from 57 (88%) in January 2022, down from 134 (20%) in March 2021, up from 54 (98%) in March 2020 and up from 38 (182%) in March 2019; Active Listings were at 121 at month end compared to 162 at that time last year and 97 at the end of February; New Listings in March were up 25% compared to February 2022, down 19% compared to March 2021, up 44% compared to March 2020 and up 58% compared to March 2019. Month’s supply of total residential listings is still at 1 month’s supply (seller’s market conditions) and sales to listings ratio of 71% compared to 73% in February 2022, 72% in March 2021, 52% in March 2020 and 40% in March 2019. The benchmark composite home price, at $1,256,300, is up 24.9% year-over-year and 6.7% higher than in February.

Port Coquitlam: Total Units Sold in March were 141 – up from 108 (31%) in February 2022, up from 77 (83%) in January 2022, down from 205 (31%) in March 2021, up from 96 (47%) in March 2020 and up from 59 (139%) in March 2019; Active Listings were at 146 at month end compared to 209 at that time last year and 102 at the end of February; New Listings in March were up 37% compared to February 2022, down 33% compared to March 2021, up 48% compared to March 2020 and up 25% compared to March 2019. Month’s supply of total residential listings is still at 1 month’s supply (seller’s market conditions) and sales to listings ratio of 67% compared to 71% in February 2022, 65% in March 2021, 68% in March 2020 and 35% in March 2019. The benchmark composite home price, at $1,146,600, is up 28.9% year-over-year and 5.6% higher than in February.

Pitt Meadows: Total Units Sold in March were 55 – up from 35 (57%) in February 2022, up from 30 (83%) in January 2022, up from 53 (4%) in March 2021, up from 35 57%) in March 2020 and up from 24 (129%) in March 2019; Active Listings were at 53 at month end compared to 53 at that time last year and 37 at the end of February; New Listings in March were up 62% compared to February 2022, up 3% compared to March 2021, up 23% compared to March 2020 and up 47% compared to March 2019. Month’s supply of total residential listings is just under 1 month’s supply (seller’s market conditions) and sales to listings ratio of 67% compared to 70% in February 2022, 67% in March 2021, 53% in March 2020 and 43% in March 2019. The benchmark composite home price, at $1,142,600, is up 32.4% year-over-year and 5.1% higher than in February.

Maple Ridge: Total Units Sold in March were 264 – up from 224 (18%) in February 2022, up from 124 (113%) in January 2022, down from 437 (40%) in March 2021, up from 170 (55%) in March 2020 and up from 116 (128%) in March 2019; Active Listings were at 390 at month end compared to 398 at that time last year and 301 at the end of February; New Listings in March were up 22% compared to February 2022, down 19% compared to March 2021, up 47% compared to March 2020 and up 69% compared to March 2019. Month’s supply of total residential listings is still at 1 month’s supply (seller’s market conditions) and sales to listings ratio of 60% compared to 62% in February 2022, 80% in March 2021, 57% in March 2020 and 44% in March 2019. The benchmark composite home price, at $1,275,300, is up 37.3% year-over-year and 5.4% higher than in February.

Ladner: Total Units Sold in March were 46 – up from 26 (77%) in February 2022, up from 22 (109%) in January 2022, down from 104 (56%) in March 2021, up from 32 (44%) in March 2020 and up from 25 (149%) in March 2019; Active Listings were at 79 at month end compared to 115 at that time last year and 62 at the end of February; New Listings in March were up 28% compared to February 2022, down 45% compared to March 2021, up 9% compared to March 2020 and down 5% compared to March 2019. Month’s supply of total residential listings is still at 2 month’s supply (seller’s market conditions) and sales to listings ratio of 63% compared to 46% in February 2022, 78% in March 2021, 48% in March 2020 and 32% in March 2019. The benchmark composite home price, at $1,247,800, is up 27.3% year-over-year and 2.9% higher than in February.

Tsawwassen: Total Units Sold in March were 78 – up from 73 (7%) in February 2022, up from 42 (86%) in January 2022, down from 106 (26%) in March 2021, up from 39 (100%) in March 2020 and up from 15 (420%) in March 2019; Active Listings were at 105 at month end compared to 166 at that time last year and 101 at the end of February; New Listings in March were down 8% compared to February 2022, down 33% compared to March 2021, up 24% compared to March 2020 and up 9% compared to March 2019. Month’s supply of total residential listings is still at 1 month’s supply (seller’s market conditions) and sales to listings ratio of 82% compared to 72% in February 2022, 77% in March 2021, 52% in March 2020 and 18% in March 2019. The benchmark composite home price, at $1,356,100, is up 23.0% year-over-year and 3.1% higher than in February.

Kevin Skipworth, Partner/Broker and Chief Economist at Dexter Realty

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Sales and Listing Report for May 2020

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.” – Theodore Roosevelt

We are all in the arena right now, and it is going to take the work of us all to come through what we are fighting today. Understanding compassion and humility will never be as important as it is during the current times.

As we moved through May, we saw a real estate market begin to form from the depths of the slowdown in March and April and with it the actions of many came under the microscope. For better or for worse, humanity moves forward. Home sales and listing activity showed significant improvement in May, with the provincial government announcing a phased approach to re-opening the economy and business. There was a breath of air that came with that announcement and continued lower numbers of COVID-19 cases in British Columbia compared to other parts of Canada and globally.

There were 1,506 homes sold of all types in Greater Vancouver in May this year compared with 1,119 homes sold last month, 2,669 sales in May last year and 2,890 homes sold in May 2018. We have had two very slow years in real estate in Metro Vancouver, in fact 2018 and 2019 were 20 per cent and 26 per cent below the 10-year average respectively. To say there is pent up demand is an understatement. But May saw the number of homes sold almost double in the last half of the month compared to the first two weeks. The growth of sales in May’s second half was greater than the growth of new listings. So yes, the number of homes sold for May is still below last year’s amount and the lowest on record for the month of May, but that is to be expected considering where we are coming from. With the second lowest number of homes sold being in 1998 at 1,799, we are seeing improvement during a time of significant isolation and economic turbulence.

2020 Average Daily Sales in Greater Vancouver by Week in COVID times:

  • First two weeks of March – 253 new listings, 138 sales
  • March 23 to 27 – 172 New Listings, 131 Sales
  • March 30 to April 3 – 104 new listings, 62 sales
  • April 6 to April 9 – 137 new listings, 58 sales
  • April 14 to 17 – 131 new listings, 63 sales
  • April 20 to 24 – 117 new listings, 48 sales
  • April 27 to May 1 – 126 new listings, 48 sales
  • May 4 to 8 – 168 new listings, 58 sales
  • May 11 to 15 – 169 new listings, 69 sales
  • May 19 to 22 – 243 new listings, 93 sales
  • May 25 to 29 – 196 new listings, 90 sales

Some highlights from May:

  • Detached home sales outside of Vancouver performed better year-over-year compared to townhouse and apartments showing the need for space and separation were and will be important factors in home decisions moving forward
  • Absorption rates still continue to be better than what we saw in the first quarter of 2019
  • Compared to the last two weeks of April which showed the most significant lag in home sales and new listings, it was the opposite for May which saw the second half out perform the first and we are seeing more multiple offers occurring
  • Port Coquitlam detached houses saw the highest absorption rate with 30 homes sold and only 30 homes listed
  • According to a survey of landlords by the Urban Development Institute and LandlordBC, residential landlords reported the highest percentage of full rent payments at 86 per cent with overall rent payments at 90 per cent and only 3 per cent not collecting any rent

The number of homes available for sale in Greater Vancouver increased in May. At the end of May there were 10,771 homes for sale, compared to 10,115 at the end of April and 15,452 at the end of May 2019 – a 30 per cent reduction in the number of homes available year-over-year. Even with the increase in the number of homes actively for sale, it is still the 4th lowest amount for the month of May going back to 1995. Make no mistake, there is a shortage of homes for sale. The number of new listings in May for Greater Vancouver increased with there being 3,777 homes listed for sale compared to 2,399 in April but this was the first time there were fewer than 4,000 new listings in the month of May going back to 1991. This amount was well below the 10-year average for May which is 6,344. Current market conditions continue to be different in every way compared to other market downturns with home sales and listing activity decreasing tantamount to each other. The market is still operating but in a vacuum of much less activity due to the pandemic. There hasn’t been an indication of any kind of panic in the market. Yes, economic conditions continue to be something that will need to be considered going forward but with British Columbia having much less instances of mortgage deferrals and less insured mortgages as a percentage of overall in Canada, the real estate market can be seen to have less risk than other parts of Canada. With mortgage rates at all-time lows and government continuing to provide economic stimulus, there are certainly backstops in place to help keep the real estate market from going down a negative road that some are trying to predict. That tied with the numbers in the graphs below, Metro Vancouver and much of the province is in a better position going through the pandemic and as such, deciphering real estate markets should be done on a regional basis. And perhaps at the end of the day, let the market speak for itself.

“Home prices have been stable during the COVID-19 period,” Colette Gerber, REBGV Chair said, “While we’re seeing a variety of long-term projections for the market, it’s critical to understand the facts and trends as they emerge. Home sale and listing activity is down compared to typical, long-term levels and up compared to the activity we saw in April 2020. Home buyers and sellers are adapting today, becoming more comfortable operating with the physical distancing requirements that are in place in the market.”

East of Vancouver, the Fraser Valley Real Estate Board processed 805 sales of all property types on its Multiple Listing Service® in April, an increase of 17 per cent compared to sales in April and a 47 per cent decrease compared to the 1,517 sales in May of last year. There were 2,207 new listings in May, a 56 per cent increase compared to April and a 38 per cent decrease compared to May of last year. May finished with 6,454 active listings, an increase of 8 per cent compared to April’s inventory and a decrease of 24 per cent year-over-year. “Although our overall numbers remain significantly lower than seasonal norms, it’s to be expected. The market is resilient and as all of us continue to work together responsibly for the betterment of public safety, it will continue to improve. It is important for buyers to note that prices overall remain stable. We’re not seeing a lot of downward pressure on prices because for many areas there is a shortage of inventory. We’re even seeing multiple offer situations currently where buyers are paying asking price. When supply and demand stay in balance, prices remain relatively firm.” Chris Shields, President of the Fraser Valley Real Estate Board.

SUMMING UP THE NUMBERS

Greater Vancouver: Total Units Sold in May was 1,506 – up from 1,119 (35%) in April 2020, down from 2,669 (44%) in May 2019, down from 2,890 (48%) in May 2018; Active Listings are at 10,771 compared to 15,452 (down 30%) at this time last year; New Listings in May 2020 were up 40% compared to April 2020, down 37% compared to May 2019 and down 42% compared to May 2018. Month’s Supply of Total Residential Listings is at 7 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 40% compared to 44% in May 2019 and 44% in May 2018.

Vancouver Westside Residential: Total Units Sold in May was 264 – up from 195 (35%) in April 2020, down from 460 (43%) in May 2019, down from 504 (48%) in May 2018; Active Listings are at 1,931 compared to 2,778 (down 30%) at this time last year; New Listings in May 2020 were up 66% compared to April 2020, down 30% compared to May 2019 and down 42% compared to May 2018. Month’s Supply of Total Residential Listings is at 7 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 36% compared to 44% in May 2019 and 40% in May 2018.

Vancouver East Side Residential: Total Units Sold in May was 167 – up from 120 (39%) in April 2020, down from 328 (49%) in May 2019, down from 364 (54%) in May 2018; Active Listings are at 886 compared to 1,403 (down 37%) at this time last year; New Listings in May 2020 were up 57% compared to April 2020, down 37% compared to May 2019 and down 47% compared to May 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 43% compared to 54% in May 2019 and 50% in May 2018.

North Vancouver Residential: Total Units Sold in May was 136 – up from 96 (42%) in April 2020, down from 257 (47%) in May 2019, down from 238 (43%) in May 2018; Active Listings are at 686 compared to 1,035 (down 34%) at this time last year; New Listings in May 2020 were up 52% compared to April 2020, down 35% compared to May 2019 and down 37% compared to May 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 40% compared to 50% in May 2019 and 45% in May 2018.

West Vancouver: Total Units Sold in May was 43 – up from 29 (48%) in April 2020, down from 71 (39%) in May 2019, down from 63 (32%) in May 2018; Active Listings are at 535 compared to 740 (down 28%) at this time last year; New Listings in May 2020 were up 51% compared to April 2020, down 39% compared to May 2019 and down 52% compared to May 2018. Month’s Supply of Total Residential Listings is at 12 Month’s Supply (Buyer’s Market) and a Sales to Listings Ratio of 30% compared to 30% in May 2019 and 21% in May 2018.

Richmond Residential: Total Units Sold in May was 152 – up from 137 (11%) in April 2020, down from 271 (44%) in May 2019, down from 356 (57%) in May 2018; Active Listings are at 1,549 compared to 2,329 (down 33%) at this time last year; New Listings in May 2020 were up 68% compared to April 2020, down 47% compared to May 2019 and down 52% compared to May 2018. Month’s Supply of Total Residential Listings is at 10 Month’s Supply (Balanced Market to Buyer’s Market Conditions) and a Sales to Listings Ratio of 37% compared to 35% in May 2019 and 41% in May 2018.

Burnaby East: Total Units Sold in May was 18 – up from 12 (50%) in April 2020, down from 25 (28%) in May 2019, down from 29 (38%) in May 2018; Active Listings are at 108 compared to 101 (up 7%) at this time last year; New Listings in May 2020 were up 34% compared to April 2020, down 14% compared to May 2019 and down 42% compared to May 2018. Month’s Supply of Total Residential Listings is at 6 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 42% compared to 50% in May 2019 and 39% in May 2018.

Burnaby North: Total Units Sold in May was 79 – up from 40 (98%) in April 2020, down from 123 (36%) in May 2019, down from 147 (46%) in May 2018; Active Listings are at 409 compared to 655 (down 38%) at this time last year; New Listings in May 2020 were up 15% compared to April 2020, down 44% compared to May 2019 and down 41% compared to May 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 50% compared to 44% in May 2019 and 55% in May 2018.

Burnaby South: Total Units Sold in May was 64 – up from 55 (16%) in April 2020, down from 131 (51%) in May 2019, down from 127 (50%) in May 2018; Active Listings are at 450 compared to 841 (down 46%) at this time last year; New Listings in May 2020 were up 23% compared to April 2020, down 60% compared to May 2019 and down 59% compared to May 2018. Month’s Supply of Total Residential Listings is at 7 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 50% compared to 40% in May 2019 and 40% in May 2018.

New Westminster: Total Units Sold in May was 73 – up from 61 (20%) in April 2020, down from 127 (43%) in May 2019, down from 132 (45%) in May 2018; Active Listings are at 356 compared to 562 (down 37%) at this time last year; New Listings in May 2020 were up 77% compared to April 2020, down 43% compared to May 2019 and down 40% compared to May 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 47% compared to 47% in May 2019 and 51% in May 2018.

Coquitlam: Total Units Sold in May was 132 – up from 93 (42%) in April 2020, down from 205 (36%) in May 2019, down from 200 (34%) in May 2018; Active Listings are at 760 compared to 1,140 (down 33%) at this time last year; New Listings in May 2020 were up 94% compared to April 2020, down 30% compared to May 2019 and down 28% compared to May 2018. Month’s Supply of Total Residential Listings is at 6 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 36% compared to 39% in May 2019 and 40% in May 2018.

Port Moody: Total Units Sold in May was 46 – up from 28 (64%) in April 2020, down from 62 (26%) in May 2019, down from 64 (28%) in May 2018; Active Listings are at 211 compared to 264 (down 20%) at this time last year; New Listings in May 2020 were up 73% compared to April 2020, down 24% compared to May 2019 and down 25% compared to May 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 47% compared to 49% in May 2019 and 50% in May 2018.

Port Coquitlam: Total Units Sold in May was 60 – up from 42 (43%) in April 2020, down from 132 (55%) in May 2019, down from 104 (42%) in May 2018; Active Listings are at 190 compared to 362 (down 48%) at this time last year; New Listings in May 2020 were up 17% compared to April 2020, down 51% compared to May 2019 and down 61% compared to May 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Balanced to Seller’s Market Conditions as a result of a significant shortage of homes available for sales) and a Sales to Listings Ratio of 66% compared to 71% in May 2019 and 44% in May 2018.

Ladner: Total Units Sold in May was 20 – up from 17 (18%) in April 2020, down from 41 (51%) in May 2019, down from 36 (44%) in May 2018; Active Listings are at 160 compared to 163 (down 2%) at this time last year; New Listings in May 2020 were up 33% compared to April 2020, down 44% compared to May 2019 and down 42% compared to May 2018. Month’s Supply of Total Residential Listings is at 8 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 42% compared to 48% in May 2019 and 43% in May 2018.

Tsawwassen: Total Units Sold in May was 35 – up from 24 (46%) in April 2020, down from 38 (8%) in May 2019, down from 35 (0%) in May 2018; Active Listings are at 237 compared to 305 (down 22%) at this time last year; New Listings in May 2020 were up 102% compared to April 2020, down 7% compared to May 2019 and down 2% compared to May 2018. Month’s Supply of Total Residential Listings is at 7 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 40% compared to 40% in May 2019 and 39% in May 2018.

Pitt Meadows: Total Units Sold in May was 23 – up from 19 (21%) in April 2020, down from 40 (42%) in May 2019, down from 39 (41%) in May 2018; Active Listings are at 103 compared to 137 (down 24%) at this time last year; New Listings in May 2020 were up 55% compared to April 2020, down 20% compared to May 2019 and down 29% compared to May 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 47% compared to 66% in May 2019 and 57% in May 2018.

Maple Ridge: Total Units Sold in May was 111 – up from 82 (35%) in April 2020, down from 171 (35%) in May 2019, down from 188 (41%) in May 2018; Active Listings are at 633 compared to 832 (down 23%) at this time last year; New Listings in May 2020 were up 37% compared to April 2020, down 43% compared to May 2019 and down 44% compared to May 2018. Month’s Supply of Total Residential Listings is at 6 Month’s Supply (Balanced Market while still seeing multiple offers) and a Sales to Listings Ratio of 54% compared to 47% in May 2019 and 51% in May 2018.


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Sales and Listing Report for April 2020

It’s not whether you get knocked down, it’s whether you get up. – Vince Lombardi

We will get back up! Considering the extent of lock down, the momentum of what March started certainly carried over into April. While sales were down and new listings were down, there was still participation in the market as Realtors found ways to present properties virtually and look at ways to ensure socially distanced showings could happen if necessary. Buyers were there and continue to be, with multiple offers occurring, even as of last week.

There were 1,119 homes sold of all types in Greater Vancouver in April this year compared with 2,562 homes sold last month, 1,850 sales in April last year and 2,631 homes sold in April 2018. Sales and listings were well below the ten-year average but actually higher than in November and December 2008 and January 2009, all three months below 1,000 homes sold. The last two weeks of April showed home sales average 48 per day compared with 138 per day during the first two weeks of March – a reduction of 75 per cent. New listings were down 51 per cent with there being an average of 122 per day compared to 253 per day at the beginning of March.

2020 Average Daily Sales by Week in Covid times:

  • First two weeks of March – 253 new listings, 138 sales
  • March 23 to 27 – 172 New Listings, 131 Sales
  • March 30 to April 3 – 104 new listings, 62 sales
  • April 6 to April 9 – 137 new listings, 58 sales
  • April 14 to 17 – 131 new listings, 63 sales
  • April 20 to 24 – 117 new listings, 48 sales
  • April 27 to May 1 – 126 new listings, 48 sales

With the reduction in the number of homes sold and the number of homes being listed, absorption of new listings was actually stronger this April then compared with April 2019, 47 per cent compared to 31 per cent. The 47 per cent this year was even better than April 2018 at 44 per cent. Buyers were more engaged with the limited number of new listings than we’ve seen in April for the last 2 years – with more incidents of multiple offers occurring. Had more homes come on to the market we would have likely seen more home sales as a result.

Some highlights from April:

  • Detached home sales in Vancouver West were slightly higher than January of this year, with a 58 per cent absorption rate and a slight increase in the average price for April compared to March
  • Detached home sales in most areas had high absorption rates compared to attached homes, perhaps a sign of a push towards separate space and less home owners willing to part with that and put their homes up for sale
  • The last two weeks of April showed the most significant lag in home sales and new listings, but similar to the end of March, home sales reported are from weeks previous and anecdotal reports indicated more activity amongst home buyers and sellers
  • While Month’s of Supply increased in April due to lower sales totals, pushing areas into Buyer’s Market Conditions on paper– this will be temporary and even with those conditions we are seeing sales that favor sellers.

The number of homes for sale in Greater Vancouver saw a slight decrease in April. At the end of April there were 10,115 homes for sale, compared to 10,315 at the end of March and 15,060 at the end of April 2019 – a 33 per cent reduction in the number of homes available year-over-year. As expected, the number of homes that came to market in April were half that of March with 2,399 homes listed for sale, compared with 4,521 in March. We will come out of this pandemic with an extremely under supplied housing market, for both resale homes and presale homes. And while there are already some anticipating a drop in home prices as a result, activity through the worst of the pandemic hasn’t indicated that so far. As local, national and global governments begin to open up economies, there will be more opportunities for increased activity in the housing market. Home owners will seek changes in where they live, having been through more time at home than ever before, and in conditions they have not experienced. Changes will be desired for some and required for others. And governments will be doing their part to push the economy forward – they have the tools to do so and will.

“Predictably, the number of home sales and listings declined in April given the physical distancing measures in place,” Colette Gerber, REBGV president-elect said, “People are, however, adapting. They’re working with the Realtors to get information, advice and to explore their options so that they’re best positioned in the market during and after this pandemic. We’re seeing more innovation in today’s market, with Realtors using different technology to showcase homes virtually, assess neighbourhood amenities with their clients and handle electronically.”

East of the Fraser River, the Fraser Valley Real Estate Board processed 688 sales of all property types on its Multiple Listing Service® in April, a decrease of 52 per cent compared to sales in March and a 50 per cent decrease compared to the sales in April of last year. According to the Fraser Valley Board, last month’s sales were on par with April sales in 1983 through to 1985; and new listings are in line with numbers last need in April 1981. There were 1,416 new listings in April, a 47 per cent decrease compared to March and a 58 per cent decrease compared to April of last year. April finished with 5,997 active listings, a decrease of 1 per cent compared to March’s inventory and a decrease of 24 per cent year-over-year. “Even though March’s initial numbers promised a banner spring, we expected the market to respond this way in April. Both sales and listings contracted in tandem as we all moved swiftly to embrace the measures necessary to respond to this global pandemic. Given that the volume of new listings coming on stream fell even faster than sales in April, the market remains stable,” Chris Shields, President of the Fraser Valley Real Estate Board.

More important than the housing market right now is focusing on getting through this pandemic and working to stay healthy and supporting those around us. The real estate market will continue and be much more active as social distancing measures and relaxations of those measures are allowed. Be safe and be careful.

SUMMING UP THE NUMBERS

Greater Vancouver: Total Units Sold in April 2020 was 1,119 – down from 2,562 (56%) in March 2020, down from 1,850 (40%) in April 2019, down from 2,631 (57%) in April 2018; Active Listings are at 10,115 compared to 15,060 (down 33%) at this time last year; New Listings in April 2020 were down 59% compared to April 2019 and down 60% compared to April 2018. Month’s Supply of Total Residential Listings is at 9 Month’s Supply (Balanced with signs of Buyer’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 47% compared to 31% in April 2019 and 44% in April 2018.

Vancouver Westside Residential: Total Units Sold in April 2020 was 195 – down from 467 (58%) in March 2020, down from 342 (43%) in April 2019, down from 467 (48%) in April 2018; Active Listings are at 1,760 compared to 2,808 (down 37%) at this time last year; New Listings in April 2020 were down 62% compared to April 2019 and down 62% compared to April 2018. Month’s Supply of Total Residential Listings is at 9 Month’s Supply (Balanced with signs of Buyer’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 44% compared to 29% in April 2019 and 40% in April 2018.

Vancouver East Side Residential: Total Units Sold in April 2020 was 120 – down from 297 (60%) in March 2020, down from 174 (31%) in April 2019, down from 298 (60%) in April 2018; Active Listings are at 836 compared to 1,403 (down 40%) at this time last year; New Listings in April 2020 were down 58% compared to April 2019 and down 66% compared to April 2018. Month’s Supply of Total Residential Listings is at 7 Month’s Supply (Balanced with signs of Buyer’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 49% compared to 36% in April 2019 and 42% in April 2018.

North Vancouver Residential: Total Units Sold in April 2020 was 96 – down from 204 (53%) in March 2020, down from 149 (36%) in April 2019, down from 221 (57%) in April 2018; Active Listings are at 633 compared to 1,049 (down 40%) at this time last year; New Listings in April 2020 were down 57% compared to April 2019 and down 54% compared to April 2018. Month’s Supply of Total Residential Listings is at 7 Month’s Supply (Balanced with signs of Buyer’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 43% compared to 29% in April 2019 and 46% in April 2018.

West Vancouver: Total Units Sold in April 2020 was 29 – down from 56 (48%) in March 2020, down from 48 (40%) in April 2019, down from 56 (48%) in April 2018; Active Listings are at 527 compared to 723 (down 27%) at this time last year; New Listings in April 2020 were down 62% compared to April 2019 and down 64% compared to April 2018. Month’s Supply of Total Residential Listings is at 18 Month’s Supply (Buyer’s Market conditions) and a Sales to Listings Ratio of 31% compared to 19% in April 2019 and 21% in April 2018.

Richmond Residential: Total Units Sold in April 2020 was 137 – down from 337 (59%) in March 2020, down from 172 (20%) in April 2019, down from 312 (59%) in April 2018; Active Listings are at 1,386 compared to 2,220 (down 38%) at this time last year; New Listings in April 2020 were down 65% compared to April 2019 and down 65% compared to April 2018. Month’s Supply of Total Residential Listings is at 10 Month’s Supply (Buyer’s to Balanced Market conditions) and a Sales to Listings Ratio of 56% compared to 25% in April 2019 and 45% in April 2018.

Burnaby East: Total Units Sold in April 2020 was 12 – down from 27 (56%) in March 2020, down from 15 (20%) in April 2019, down from 35 (66%) in April 2018; Active Listings are at 101 compared to 153 (down 34%) at this time last year; New Listings in April 2020 were down 44% compared to April 2019 and down 52% compared to April 2018. Month’s Supply of Total Residential Listings is at 8 Month’s Supply (Balanced Market conditions) and a Sales to Listings Ratio of 38% compared to 26% in April 2019 and 53% in April 2018.

Burnaby North: Total Units Sold in April 2020 was 40 – down from 130 (69%) in March 2020, down from 81 (51%) in April 2019, down from 135 (70%) in April 2018; Active Listings are at 409 compared to 634 (down 35%) at this time last year; New Listings in April 2020 were down 51% compared to April 2019 and down 51% compared to April 2018. Month’s Supply of Total Residential Listings is at 10 Month’s Supply (Balanced Market conditions) and a Sales to Listings Ratio of 29% compared to 29% in April 2019 and 48% in April 2018.

Burnaby South: Total Units Sold in April 2020 was 55 – down from 143 (62%) in March 2020, down from 97 (43%) in April 2019, down from 108 (49%) in April 2018; Active Listings are at 463 compared to 819 (down 43%) at this time last year; New Listings in April 2020 were down 63% compared to April 2019 and down 63% compared to April 2018. Month’s Supply of Total Residential Listings is at 8 Month’s Supply (Balanced Market conditions) and a Sales to Listings Ratio of 52% compared to 34% in April 2019 and 38% in April 2018.

New Westminster: Total Units Sold in April 2020 was 61 – down from 118 (48%) in March 2020, down from 108 (44%) in April 2019, down from 133 (54%) in April 2018; Active Listings are at 333 compared to 533 (down 38%) at this time last year; New Listings in April 2020 were down 69% compared to April 2019 and down 63% compared to April 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced Market conditions) and a Sales to Listings Ratio of 69% compared to 38% in April 2019 and 56% in April 2018.

Coquitlam: Total Units Sold in April 2020 was 93 – down from 202 (54%) in March 2020, down from 153 (39%) in April 2019, down from 202 (54%) in April 2018; Active Listings are at 687 compared to 1,068 (down 36%) at this time last year; New Listings in April 2020 were down 59% compared to April 2019 and down 59% compared to April 2018. Month’s Supply of Total Residential Listings is at 7 Month’s Supply (Buyer’s Market conditions) and a Sales to Listings Ratio of 49% compared to 33% in April 2019 and 44% in April 2018.

Port Moody: Total Units Sold in April 2020 was 28 – down from 54 (48%) in March 2020, down from 60 (53%) in April 2019, down from 54 (48%) in April 2018; Active Listings are at 204 compared to 252 (down 19%) at this time last year; New Listings in April 2020 were down 61% compared to April 2019 and down 50% compared to April 2018. Month’s Supply of Total Residential Listings is at 7 Month’s Supply (Balanced Market conditions) and a Sales to Listings Ratio of 50% compared to 41% in April 2019 and 48% in April 2018.

Port Coquitlam: Total Units Sold in April 2020 was 42 – down from 96 (54%) in March 2020, down from 67 (37%) in April 2019, down from 103 (39%) in April 2018; Active Listings are at 197 compared to 395 (down 50%) at this time last year; New Listings in April 2020 were down 60% compared to April 2019 and down 58% compared to April 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced Market conditions) and a Sales to Listings Ratio of 54% compared to 34% in April 2019 and 56% in April 2018.

Ladner: Total Units Sold in April 2020 was 17 – down from 32 (47%) in March 2020, down from 29 (41%) in April 2019, down from 32 (47%) in April 2018; Active Listings are at 173 compared to 190 (down 9%) at this time last year; New Listings in April 2020 were down 45% compared to April 2019 and down 37% compared to April 2018. Month’s Supply of Total Residential Listings is at 10 Month’s Supply (Buyer’s Market conditions) and a Sales to Listings Ratio of 47% compared to 45% in April 2019 and 56% in April 2018.

Tsawwassen: Total Units Sold in April 2020 was 24 – down from 39 (38%) in March 2020, up from 18 (33%) in April 2019, down from 38 (37%) in April 2018; Active Listings are at 209 compared to 296 (down 29%) at this time last year; New Listings in April 2020 were down 61% compared to April 2019 and down 63% compared to April 2018. Month’s Supply of Total Residential Listings is at 9 Month’s Supply (Buyer’s to Balanced Market conditions) and a Sales to Listings Ratio of 56% compared to 17% in April 2019 and 32% in April 2018.

Pitt Meadows: Total Units Sold in April 2020 was 19 – down from 35 (46%) in April 2020, down from 28 (45%) in April 2019, down from 25 (24%) in March 2018; Active Listings are at 97 compared to 136 (down 28%) at this time last year; New Listings in April 2020 (31) were down 56% compared to April 2019 and down 47% compared to April 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Mostly a Balanced Market with some Seller’s Market Conditions) and a Sales to Listings Ratio of 61% compared to 38% in April 2019 and 43% in April 2018.

Maple Ridge: Total Units Sold in March 2020 was 82 – down from 170 (52%) in March 2020, down from 124 (33%) in April 2019, down from 205 (60%) in April 2018; Active Listings are at 649 compared to 792 (down 18%) at this time last year; New Listings in April 2020 were down 55% compared to April 2019 and down 58% compared to April 2018. Month’s Supply of Total Residential Listings is at 8 Month’s Supply (Mostly Balanced Market Conditions) and a Sales to Listings Ratio of 54% compared to 36% in April 2019 and 57% in April 2018.

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Sales and Listing Report for March 2020

“Our patience will achieve more than our force” – Edmund Burke

Where to begin. This month’s numbers for Greater Vancouver real estate are a tale of what could have been, not so much what will be. The way sales on a given day are counted by the Real Estate Board of Greater Vancouver are by looking at the day when that sale is reported by a real estate company to the Board, regardless of when the date the contract is written. So, there is a time lag between when the contract is written and when it is reported. This will be important in looking at sales figures for March as a degree of that activity came from transactions that were initiated prior to mid-March.

There were 2,562 homes sold of all types in Greater Vancouver in March this year compared with 2,185 homes sold last month, 1,745 sales in March last year and 2,551 homes sold in March 2018. Sales in March were 19 per cent below the 10-year average for the month of March. The number of sales in March were 47 per cent higher compared to March 2019, continuing the trend for the ninth straight month where year-over-year sales were up. This trend is likely to stop in April as the effect of the COVID-19 Virus impacts the real estate market.

Some highlights from March:

  • North Vancouver was one of the few areas that saw a decline in the number of sales in March compared to February and the number of detached homes sold was below that of March 2019
  • Year over year, the increase in detached homes sold was the greatest at 61 per cent, townhouses followed at 51 per cent with apartments at 35 per cent
  • Year over year the decrease in the number of active listings for detached homes was the greatest at 28 per cent, followed by townhouses at 27 per cent and then apartments at 19 per cent

Beyond the Pandemic:

The COVID-19 crisis will continue over the next number of months, a timeframe which is impossible to determine at this time. The numbers show that Greater Vancouver was in the stages of a market gaining momentum. While the market was still reaching for average, it was still vastly improved from last year which was a very challenged real estate market. Pent up demand was coming to the market, and from the provincial numbers identifying a very small number of foreign buyers, these were local buyers. While the real estate market takes a pause for the short term, there are many reasons to think it will be very active when we see some relief from virus, and in some cases why we may see activity over the next few months.

  • Detached/townhouse will be more attractive and in greater demand after this as people want dwellings with social distancing – people will make personal and financial sacrifices for health
  • Those in sectors where the most job losses are occurring in higher numbers aren’t the typical buyers in the market
  • After isolation people will grow tired of their homes and want a change
  • Unfortunately, some marriages may not survive after this hence people will need to move
  • In 9 to 12 months there likely will be a mini-baby boom hence people will need to move
  • Having not spent disposable income as much, people are in saving modes and that will carry on beyond this and will add to what’s available for home purchasing (even with reduced incomes, many of the home buyers are still earning an income)
  • Interest rates will be low for the foreseeable future, lowest we’ve seen
  • With so many sectors in the economy suffering that are important to government revenue, and as they struggle to recover, the government will need investment and revenue from real estate
  • There will be a shortage of homes available coming out of this and continuing so prices will not be dropping to any great degree, and new construction will suffer which will perpetuate the shortage in the years to come
  • Stock markets will continue to be volatile, pushing money into real estate, especially at higher price points
  • Canada’s response to Covid-19 is showing it a favourable place to be – immigration and investment will likely flourish with the United States potentially being a source of those coming to Canada.

The number of homes for sale in Greater Vancouver saw a slight increase in March. At the end of March there were 10,338 homes for sale in Greater Vancouver, compared to 9,894 at the end of February and 13,408 at the end of March 2019. While it may be surprising that we had that many new listings during the current pandemic, April will be more telling of the effects. But we saw 2,511 new listings up to March 15 and then 2,010 after that. The number of new listings per day did start to decline in the days leading up to the end of the month, but we are still seeing listings coming on (233 in Greater Vancouver in the last two days of the month.) Current market conditions are still producing some multiple offers – in all product types. While it may seem like a high number of new listings for current conditions, it is still well below what we would see for March in Greater Vancouver. There were 4,421 new listings during March in Greater Vancouver, down 11 per cent from March last year. The number of new listings in March were 22 per cent below the 10-year average for the month.

The first two weeks of the month were the busiest days of the year for our region with heightened demand and multiple offers becoming more common,” Ashley Smith, REBGV president said, “Like other aspects of our lives, this changed as concerns over the COVID-19 situation in our province grew. “Many of the sales recorded in March were in process before the provincial government declared a state of emergency. We’ll need more time to pass to fully understand the impact that the pandemic is having on the housing market,” Smith said.

East of the Fraser River, the Fraser Valley Real Estate Board processed 1,441 sales of all property types on its Multiple Listing Service® in March, an increase of 7 per cent compared to sales in February and a 18 per cent increase compared to the sales in March of last year. According to the Fraser Valley Board, during the first 7 business days of the month, property sales were tracking 60 per cent higher compared to the same period in March of last year, however finished significantly lower.   Active listings for the Fraser Valley finished 6 per cent higher month-over-month and decreased of 13 per cent when compared to March 2019. There were 2,666 new listings in March, a 4 per cent increase compared to February 2020 and a 7 per cent decrease compared to March 2019.

Above all else, right now is a time to focus on staying safe and healthy. There will be real estate activity while we are under these unprecedented times, some people’s financial wellbeing may depend upon it. Others just need a home to isolate in. What’s important is that we all act in a way to help bring back normalcy to our lives – as much as that can be. Be safe and be careful.

SUMMING UP THE NUMBERS

Greater Vancouver: Total Units Sold in March 2020 was 2,562 – up from 2,185 (17%) in February 2020, up from 1,745 (47%) in March 2019, up from 2,551 (0%) in March 2018; Active Listings are at 10,315 compared to 13,408 (down 23%) at this time last year; New Listings in March 2020 were down 11% compared to March 2019 and down 1% compared to March 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 57% compared to 35% in March 2019 and 51% in March 2018.

Vancouver Westside Residential: Total Units Sold in March 2020 was 467 – up from 367 (27%) in February 2020, up from 333 (40%) in March 2019, up from 441 (6%) in March 2018; Active Listings are at 1,814 compared to 2,511 (down 28%) at this time last year; New Listings in March 2020 were down 15% compared to March 2019 and down 5% compared to March 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 55% compared to 34% in March 2019 and 49% in March 2018.

Vancouver East Side Residential: Total Units Sold in March 2020 was 297 – up from 243 (22%) in February 2020, up from 174 (71%) in March 2019, up from 284 (5%) in March 2018; Active Listings are at 834 compared to 1,239 (down 33%) at this time last year; New Listings in March 2020 were down 9% compared to March 2019 and down 9% compared to March 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 64% compared to 34% in March 2019 and 55% in March 2018.

North Vancouver Residential: Total Units Sold in March 2020 was 204 – down from 206 (1%) in February 2020, up from 165 (24%) in March 2019, down from 216 (6%) in March 2018; Active Listings are at 640 compared to 883 (down 28%) at this time last year; New Listings in March 2020 were down 9% compared to March 2019 and down 2% compared to March 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Balanced with mostly Seller’s Market conditions) and a Sales to Listings Ratio of 57% compared to 42% in March 2019 and 60% in March 2018.

West Vancouver: Total Units Sold in March 2020 was 56 – down from 57 (2%) in February 2020, up from 34 (65%) in March 2019, up from 42 (36%) in March 2018; Active Listings are at 553 compared to 670 (down 20%) at this time last year; New Listings in March 2020 were the same compared to March 2019 and up 9% compared to March 2018. Month’s Supply of Total Residential Listings is at 10 Month’s Supply (Buyer’s Market conditions) and a Sales to Listings Ratio of 33% compared to 20% in March 2019 and 27% in March 2018.

Richmond Residential: Total Units Sold in March 2020 was 337 – up from 253 (33%) in February 2020, up from 178 (89%) in March 2019, up from 306 (10%) in March 2018; Active Listings are at 1,464 compared to 2,025 (down 28%) at this time last year; New Listings in March 2020 were up 23% compared to March 2019 and down 14% compared to March 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Balanced Market conditions) and a Sales to Listings Ratio of 64% compared to 26% in March 2019 and 50% in March 2018.

Burnaby East: Total Units Sold in March 2020 was 27 – down from 32 (16%) in February 2020, up from 17 (59%) in March 2019, up from 26 (4%) in March 2018; Active Listings are at 101 compared to 141 (down 28%) at this time last year; New Listings in March 2020 were up 6% compared to March 2019 and up 17% compared to March 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 56% compared to 33% in March 2019 and 63% in March 2018.

Burnaby North: Total Units Sold in March 2020 was 130 – up from 100 (30%) in February 2020, up from 77 (69%) in March 2019, down from 131 (1%) in March 2018; Active Listings are at 392 compared to 536 (down 27%) at this time last year; New Listings in March 2020 were down 1% compared to March 2019 and up 3% compared to March 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 59% compared to 34% in March 2019 and 61% in March 2018.

Burnaby South: Total Units Sold in March 2020 was 143 – up from 105 (36%) in February 2020, up from 97 (47%) in March 2019, up from 103 (39%) in March 2018; Active Listings are at 482 compared to 771 (down 37%) at this time last year; New Listings in March 2020 were down 24% compared to March 2019 and up 12% compared to March 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 65% compared to 33% in March 2019 and 53% in March 2018.

New Westminster: Total Units Sold in March 2020 was 118 – up from 90 (20%) in February 2020, up from 81 (46%) in March 2019, down from 149 (21%) in March 2018; Active Listings are at 350 compared to 472 (down 26%) at this time last year; New Listings in March 2020 were down 2% compared to March 2019 and up 3% compared to March 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 59% compared to 40% in March 2019 and 77% in March 2018.

Coquitlam: Total Units Sold in March 2020 was 202 – up from 196 (19%) in February 2020, up from 142 (42%) in March 2019, down from 204 (1%) in March 2018; Active Listings are at 696 compared to 933 (down 25%) at this time last year; New Listings in March 2020 were down 5% compared to March 2019 and up 20% compared to March 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 52% compared to 35% in March 2019 and 63% in March 2018.

Port Moody: Total Units Sold in March 2020 was 54 – up from 36 (50%) in February 2020, up from 38 (42%) in March 2019, down from 57 (5%) in March 2018; Active Listings are at 199 compared to 210 (down 5%) at this time last year; New Listings in March 2020 were up 9% compared to March 2019 and up 33% compared to March 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 52% compared to 40% in March 2019 and 73% in March 2018.

Port Coquitlam: Total Units Sold in March 2020 was 96 – up from 83 (16%) in February 2020, up from 59 (63%) in March 2019, down from 103 (7%) in March 2018; Active Listings are at 194 compared to 168 (up 15%) at this time last year; New Listings in March 2020 were up 15% compared to March 2019 and up 9% compared to March 2018. Month’s Supply of Total Residential Listings is at 2 Month’s Supply (Seller’s Market conditions) and a Sales to Listings Ratio of 68% compared to 35% in March 2019 and 82% in March 2018.

Ladner: Total Units Sold in March 2020 was 32 – down from 36 (11%) in February 2020, up from 25 (28%) in March 2019, up from 24 33%) in March 2018; Active Listings are at 171 compared to 170 (up 1%) at this time last year; New Listings in March 2020 were down 13% compared to March 2019 and up 22% compared to March 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced Market conditions) and a Sales to Listings Ratio of 48% compared to 32% in March 2019 and 44% in March 2018.

Tsawwassen: Total Units Sold in March 2020 was 39 – up from 32 (22%) in February 2020, up from 15 (160%) in March 2019, and the same at 39 in March 2018; Active Listings are at 218 compared to 236 (down 8%) at this time last year; New Listings in March 2020 down up 12% compared to March 2019 and down 14% compared to March 2018. Month’s Supply of Total Residential Listings is at 6 Month’s Supply (Balanced Market conditions) and a Sales to Listings Ratio of 52% compared to 18% in March 2019 and 45% in March 2018.

Pitt Meadows: Total Units Sold in March 2020 was 35 – up from 27 (30%) in February 2020, up from 24 (45%) in March 2019, up from 34 (21%) in March 2018; Active Listings are at 102 compared to 119 (down 14%) at this time last year; New Listings in March 2020 were up 20% compared to March 2019 and up 94% compared to March 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Mostly a Seller’s Market with some Balanced Market Conditions) and a Sales to Listings Ratio of 53% compared to 43% in March 2019 and 100% in March 2018.

Maple Ridge: Total Units Sold in March 2020 was 170 – down from 177 (48%) in February 2020, up from 116 (46%) in March 2019, down from 180 (6%) in March 2018; Active Listings are at 659 compared to 675 (down 2%) at this time last year; New Listings in March 2020 were up 14% compared to March 2019 and up 5% compared to March 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Mostly a Seller’s Market with some Balanced Market Conditions) and a Sales to Listings Ratio of 57% compared to 44% in March 2019 and 63% in March 2018.

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Sales and Listing Report for January 2020

“You may delay, but time will not” – Benjamin Franklin

No new supply! That seems to be the cry of government and the opinion of some regarding Metro Vancouver real estate. Let’s talk about what effect this actually has on the market when supply isn’t part of the equation in dealing with the dynamics of our housing market, because affordability definitely isn’t one of the benefits of no new supply. Similar to how the real estate market was acting in the fall, this month multiple offers were happening in the market, except at a much higher occurrence. In fact, there was an apartment in Yaletown that generated 18 offers at the start of February. It’s become the norm not the exception so far in 2020 and to no surprise for those tracking market activity. With apartments and townhouses seeing the bulk of these, it is now creeping into the detached housing market – especially below $1.5M. And why? Supply. There isn’t enough. The number of homes available for sale has dropped significantly and is continuing to do so. And with the pent-up demand jumping into the market, we see these multiple offers.

There were 1,602 homes sold of all types in Greater Vancouver in January this year compared with 2,046 homes sold last month, 1,120 sales in January last year and 1,846 homes sold in January 2018. Sales in January were 9 per cent below the 10-year average for the month of January but only 4 per cent below the 10-year average if the 2,574 sales from January 2016 were excluded (a significant anomaly from what we typically see in January.) The number of sales in January were 43 per cent higher compared to January 2019, continuing the trend of strength in the real estate market with January being the seventh straight month or year over year increases for the month.

Some highlights from January:

  • The number of sales in Richmond in January were up 88% compared to January of last year with townhouses leading the way up 152% year over year.
  • The number of detached homes currently listed in Vancouver are down significantly – there are 528 Westside houses available – the lowest amount since December 2016; on the East Side there are 39% less houses available compared to January 2019 and the lowest level since March 2016
  • There are 15 townhouses available in Port Moody from a peak of 64 in June 2019; 39 townhouses available in Port Coquitlam from a peak of 102 in April 2019; 85 townhouses available in Coquitlam from a peak of 194 in June 2019 – with similar patterns in other areas for townhouses
  • In Port Moody, there are a total of 122 residential properties available compared to the peak of 266 in June 2019
  • Average prices for condos in the majority of areas in Greater Vancouver dropped in January showing the strength and demand in the lower end of the market as lower priced properties are selling (Average prices are a calculation based on the total dollar volume of sales and the number of homes sold)
  • All residential sales in New Westminster were down 33% compared to January 2019 – the one area that saw a decline in the number of homes sold year over year in January.

The number of homes for sale in Greater Vancouver continued actually declined at the end of January compared to the end of December, which has only happened twice since 2005 and occurred during years of stronger sales at the turn of the Century. At the end of January there were 9,307 homes for sale in Greater Vancouver, and at the end of December there were 9,309, and a decrease from the 11,427 homes for sale at the end of January 2019 thereby reducing the month’s supply of homes in some markets down to 3 to 4 months – a seller’s market. Multiple offers have been very prevalent throughout Metro Vancouver, and in all segments of the market. With some sales occurring well above list price and above where properties have been priced through the fall. There were 3,993 new listings during January in Greater Vancouver, down 20 per cent from January last year. The number of new listings in January were 19 per cent below the 10-year average for the month of January and 17 per cent below the average for January going back to 1992. Considering how many more homes there are available to be sold in Greater Vancouver compared to 1992 (which saw 5,621 homes listed in January), the trend is certainly for homeowners to hold on to their homes and not sell – likely a function of policy aimed at controlling demand. And as that demand continues to increase with more people moving to Metro Vancouver and pent up demand coming forward, the question is: what are they going to buy?

“We’ve begun 2020 with steady home buyer demand that tracks close to the region’s long -term average,” Ashely Smith, Real Estate Board of Greater Vancouver president said. “Looking at supply, we’re seeing fewer homes listed for sale than is typical for this time of year. As we approach the traditionally more active spring market, we’ll keep a close eye on supply to see if the number of homes being listed is keeping pace with demand.”

East of the Fraser River, the Fraser Valley Real Estate Board processed 974 sales of all property types on its Multiple Listing Service® in January, a decrease of 21.9 per cent compared to sales in December and a 24.2 per cent increase compared to the sales in January of last year. Active listings for the Fraser Valley finished at 5,143, increasing 9.8 per cent month-over-month and a decrease of 14.2 per cent when compared to January 2019. There were 2,216 new listings in January, a 15.1 cent decrease compared to January 2019. “Considering our record-shattering snow and cold, the pace of homes sales remainded surprisingly balanced in January,” said Darin Germyn, President of the Fraser Valley Real Estate Board. “Sales in our regional have steadily improved since July of last year and January’s numbers remained consistent with that trend. Where the weather may have had an impact in January, is on our housing supply. For certain property types, listings in the Fraser Valley are not keeping pace with sales. In areas of Surrey and Langley for example, for every two townhomes listed, one is selling.”

SUMMING UP THE NUMBERS

Greater Vancouver: Total Units Sold in January 2020 was 1,602 – up from  1,120 (43%) in January 2019, down from 1,846 (13%) in January 2018; Active Listings are at 9,307 compared to 11,427 (down 19%) at this time last year; New Listings in January 2020 were down 20% compared to January 2019 and up 2% compared to January 2018. Month’s Supply of Total Residential Listings is at 6 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 40% compared to 22% in January 2019 and 47% in January 2018.

Vancouver Westside Residential: Total Units Sold in January 2020 was 275 – up from  187 (47%) in January 2019, down from 313 (12%) in January 2018; Active Listings are at 1,704 compared to 2,084 (down 18%) at this time last year; New Listings in January 2020 were down 26% compared to January 2019 and down 8% compared to January 2018 Month’s Supply of Total Residential Listings is at 6. Month’s Supply (Balanced to Buyer’s Market conditions in detached with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 37% compared to 19% in January 2019 and 39% in January 2018.

Vancouver East Side Residential: Total Units Sold in January 2020 was 161 – up from  105 (53%) in January 2019, up from 137 (18%) in January 2018; Active Listings are at 746 compared to 1,071 (down 30%) at this time last year; New Listings in January 2020 were down 22% compared to January 2019 and down 10% compared to January 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 45% compared to 23% in January 2019 and 34% in January 2018

North Vancouver Residential: Total Units Sold in January 2020 was 100 – up from  91 (10%) in January 2019, down from 132 (24%) in January 2018; Active Listings are at 559 compared to 740 (down 24%) at this time last year; New Listings in January 2020 were down 14% compared to January 2019 and up 26% compared to January 2018. Month’s Supply of Total Residential Listings is at 6 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 27% compared to 21% in January 2019 and 45% in January 2018.

West Vancouver: Total Units Sold in January 2020 was 29 – up from  26 (12%) in January 2019, down from 43 (33%) in January 2018; Active Listings are at 518 compared to 599 (down 14%) at this time last year; New Listings in January 2020 were down 22% compared to January 2019 and down 6% compared to January 2018. Month’s Supply of Total Residential Listings is at 18 Month’s Supply (Buyer’s Market conditions) and a Sales to Listings Ratio of 16% compared to 11% in January 2019 and 23% in January 2018.

Richmond Residential: Total Units Sold in January 2020 was 227 – up from  121 (88%) in January 2019, down from 275 (17%) in January 2018; Active Listings are at 1,410 compared to 1,696 (down 17%) at this time last year; New Listings in January 2020 were down 31% compared to January 2019 and down 3% compared to January 2018. Month’s Supply of Total Residential Listings is at 6 Month’s Supply (Balanced to Buyer’s Market conditions in detached with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 43% compared to 16% in January 2019 and 50% in January 2018.

Burnaby East: Total Units Sold in January 2020 was 18 – up from  11 (64%) in January 2019, down from 29 (38%) in January 2018; Active Listings are at 111 compared to 119 (down 7%) at this time last year; New Listings in January 2020 were down 18% compared to January 2019 and down 30% compared to January 2018. Month’s Supply of Total Residential Listings is at 6 Month’s Supply (Balanced to Buyer’s Market conditions in detached with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 40% compared to 20% in January 2019 and 45% in January 2018.

Burnaby North: Total Units Sold in January 2020 was 96 – up from  65 (48%) in January 2019, up from 73 (32%) in January 2018; Active Listings are at 321 compared to 483 (down 44%) at this time last year; New Listings in January 2020 were down 3% compared to January 2019 and up 30% compared to January 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 46% compared to 30% in January 2019 and 45% in January 2018.

Burnaby South: Total Units Sold in January 2020 was 90 – up from  55 (64%) in January 2019, down from 102 (12%) in January 2018; Active Listings are at 459 compared to 657 (down 30%) at this time last year; New Listings in January 2020 were down 26% compared to January 2019 and up 2% compared to January 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 43% compared to 20% in January 2019 and 50% in January 2018.

New Westminster: Total Units Sold in January 2020 was 50 – down from 75 (33%) in January 2019, down from 96 (48%) in January 2018; Active Listings are at 285 compared to 386 (down 26%) at this time last year; New Listings in January 2020 were down 27% compared to January 2019 and down 8% compared to January 2018. Month’s Supply of Total Residential Listings is at 6 Month’s Supply (Balanced with Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 35% compared to 38% in January 2019 and 62% in January 2018.

Coquitlam: Total Units Sold in January 2020 was 144 – up from  87 (66%) in January 2019, down from 156 (8%) in January 2018; Active Listings are at 568 compared to 788 (down 28%) at this time last year; New Listings in January 2020 were down 17% compared to January 2019 and up 15% compared to January 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 47% compared to 23% in January 2019 and 58% in January 2018.

Port Moody: Total Units Sold in January 2020 was 37 – up from  31 (19%) in January 2019, down from 46 (20%) in January 2018; Active Listings are at 122 compared to 165 (down 26%) at this time last year; New Listings in January 2020 were down 22% compared to January 2019 and down 4% compared to January 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 57% compared to 37% in January 2019 and 68% in January 2018.

Port Coquitlam: Total Units Sold in January 2020 was 60 – up from  38 (58%) in January 2019, up from 58 (3%) in January 2018; Active Listings are at 200 compared to 290 (down 31%) at this time last year; New Listings in January 2020 were down 10% compared to January 2019 and up 22% compared to January 2018. Month’s Supply of Total Residential Listings is at 3 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 47% compared to 27% in January 2019 and 55% in January 2018.

Ladner: Total Units Sold in January 2020 was 35 – up from  16 (119%) in January 2019, up from 19 (84%) in January 2018; Active Listings are at 145 compared to 143 (up 1%) at this time last year; New Listings in January 2020 were up 13% compared to January 2019 and up 35% compared to January 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 48% compared to 26% in January 2019 and 35% in January 2018.

Tsawwassen: Total Units Sold in January 2020 was 21 – up from  14 (50%) in January 2019, up from 16 (31%) in January 2018; Active Listings are at 208 compared to 182 (up 14%) at this time last year; New Listings in January 2020 were down 4% compared to January 2019 and up 13% compared to January 2018. Month’s Supply of Total Residential Listings is at 10 Month’s Supply (Balanced to buyer’s market conditions in some areas and product types) and a Sales to Listings Ratio of 30% compared to 19% in January 2019 and 26% in January 2018.

Pitt Meadows: Total Units Sold in January 2020 was 19 – up from  10 (90%) in January 2019, up from 18 (6%) in January 2018; Active Listings are at 73 compared to 96 (down 23%) at this time last year; New Listings in January 2020 were up 30% compared to January 2019 and up 65% compared to January 2018. Month’s Supply of Total Residential Listings is at 4 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 37% compared to 25% in January 2019 and 58% in January 2018.

Maple Ridge: Total Units Sold in January 2020 was 120 – up from  82 (46%) in January 2019, down from 182 (34%) in January 2018; Active Listings are at 556 compared to 602 (down 7%) at this time last year; New Listings in January 2020 were down 11% compared to January 2019 and up 2% compared to January 2018. Month’s Supply of Total Residential Listings is at 5 Month’s Supply (Balanced with signs of Seller’s Market conditions in some areas and product types) and a Sales to Listings Ratio of 54% compared to 32% in January 2019 and 84% in January 2018.

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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.