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Sales and Listing Report for Feb 2024

Highlights of Dexter’s February 2024 report

  • Buyers continue to show up! Number of sales in Greater Vancouver were up 45% from January

  • Sellers starting to show up, the number of new listings were up 20% from January 

  • Bank of Canada continues the holding pattern on its rate – fixed rates declining 

  • Sales in West Vancouver up 143% compared to January

At the mid-point of February, this month was as much a dark horse to hit 2,000 sales in Greater Vancouver as Billy Mack was to hit the #1 Christmas Song in Love Actually… and like this movie being 20 years old, the sales and new listings amounts feel like they are from 20 years ago. Lack of buyer and seller engagement continues to be one of the significant stories in the market. And as we’ve said before, Metro Vancouver real estate doesn’t have a speculation problem, it has a holding problem. Buyers are holding real estate and not turning into sellers which results in significantly less homes available for other buyers to purchase. But government policy continues to go after the demand side instead of encouraging supply from the existing home stock. Expecting new home construction to fill the void isn’t enough nor realistic.

With the Bank of Canada holding their rate at 5% at the latest meeting this morning, and with the U.S. holding at 5.5% so far this year, the wait continues as to when we might see the first rate cut. The sentiment is that it’s coming. Canadian and U.S. inflation is showing signs of easing, and with the Canadian economy showing signs of weakness, logic would say that rates should be coming down sooner rather than later. Employment numbers remain relatively flat though which isn’t helping in the obvious decision. Canada will likely wait for our neighbours to the south to make the first move, which may come in June when the U.S. has its more in-depth policy decision meeting.

There were 2,070 properties sold in Greater Vancouver in February after, 1,427 properties sold in January this year. This was a 13% increase from the 1,824 properties sold last year in February. Even with one more day in February this year, there were 103.5 sales per day compared to 96 sales per day last year. So, we can’t fully thank the extra day in the leap year for a better February. There is more buyer engagement. The latter half of the month certainly produced more sales, with the last week of the month showing 116 sales per day. A sign the real estate market is continuing to show more activity. This was also the first month where total sales were over 2,000 since August of last year as the fall suffered the fate of two summer interest rate increases by the Bank of Canada. Optimism is gaining in the market as buyers simply need to move on – literally. 

With this increase in activity, sales in February were 23% below the 10-year average, after sales in January were 22% below the 10-year average with sales in December 37% below the 10-year average and November’s sales at 35% below the 10-year average. We’re still within a slower moving market, and with a few more listings coming on this month, buyers were given opportunity. And moving forward, they should take advantage of it. February isn’t traditionally a strong month for sales, so expect March to produce more sales, even with spring break in the middle of it.

With the increase sales, we saw a drop to 5 months supply of homes overall in Greater Vancouver, falling back from 6 months in January and 7 months supply in December. Vancouver’s West Side dropped down to 6 months supply from 8 in January and Vancouver’s East Side declined to 4 months (a technical seller’s market) from 6 months in January. Vancouver saw fewer new listings in February compared to other areas of the region, while sales were up 53% compared to January on the West Side and 52% on the East Side. West Vancouver produced twice as many sales in February, bringing months supply down to 9 from 21. Detached sales in each of these cities showing more growth than the other sectors, signalling the upper end of the market is coming back perhaps. The perpetually under supplied North Vancouver dropped down to 3 months supply with condos there at 2 months supply. Further east, Burnaby and beyond have 4 months supply of homes available, with the Tri-Cities down to 3 months supply. Maple Ridge is the anomaly with 5 months supply after significant increase in new listings – up 92% compared to February last year and to 54% compared to January. Active listing counts are up 47% compared to this time last year. Buyers, Maple Ridge is where the opportunities are!

Even with the extra day in the month, we only saw 4,651 new listings in Greater Vancouver. This was well above last year’s total of 3,559 new listings, so that’s a good sign that sellers are coming back, perhaps in response to an uptick in buyer activity. Multiple offers have been occurring in the market more than last fall, an encouraging sign for those sellers that were afraid to enter a quiet market. The challenge of giving up lower mortgage rates continues for many homeowners through, unwilling to enter a higher mortgage rate to make a move. As renewals begin over the next few months and years and as rates start to come down, we’ll see this pent-up supply start to release more into the market. For some sellers, it may be better to take advantage of a lack of listings now and come on the market and work with a mortgage professional to find the right rate for now in anticipation of lower rates in the next few years. Date the rate and marry the house as they say. 

The number of new listings in January were right at the 10-year average, which is an improvement from January where they were 13% below the average and December with the number of new listings in that month being 25% below the 10-year average. 

There were 9,634 active listings in Greater Vancouver at month end, after there being 8,633 active listings in Greater Vancouver at the end of January and 8,283 at the end of February 2023. The detached market overall has come down to 6 months supply from 8, putting it into balanced market territory. Townhomes remain at 4 months supply and condos dropped to 4 months supply from 5 – putting both into seller market conditions. Depending on price point and area though, some may be more in balanced market conditions. Absorption rates for detached were 39% for the month while townhouses and condos were at 48% and 47% respectively. All segments saw lower absorption rates compared to last year in February, because of more new listings this year. As a result, we are seeing a gain in the active listing counts. This could bring more buyers to the market, again, a good sign for sellers.

Will March be the lion or the lamb in the real estate market. With a sizable increase in both sales and new listings in February compared to the previous month, will March continue down that path. After the provincial budget was announced, buyers and sellers will continue to navigate an incredible amount of policy changes by government, with an anti-flipping tax of 20% to start in 2025 introduced by the BC NDP.

The likely effect of this in the years to come will be a reduced number of listings as sellers hold on to properties more than they already are. Perhaps we’ll see a push to sell before 2024 ends though. Increased thresholds for the Property Transfer Tax exemptions starting April 1st will help those buyers purchasing up to $835,000 for resale and up to $1.1 million for newly constructed homes. The first-time homebuyer incentive has been discontinued at the federal level, much to the dismay of Dawson Creek which was the only region of B.C. where the program worked. Goodbye to bad legislation. Unfortunately, that was not the same for the Foreign Buyer Ban as the Federal Liberals announced a further two-year extension on that program which will now run until the end of 2026. All of which do not help but hinder supply of homes, which is the biggest challenge in the housing market, ironically identified by the government too. Too bad policy doesn’t align with reality.

Here’s a summary of the numbers:

Greater Vancouver: Total Units Sold in February were 2,070 - up from 1,427 (45%) in January, up from 1,345 (54%) in December up from 1,824 (13%) in February 2023, down from 3,451 (40%) in February 2022, down from 3,852 (47%) in February 2021, down from 2,185 (5%) in February 2020, up from 1,512 (40%) in February 2019; Active Listings were at 9,634 at month end compared to 8,283 at that time last year and 8,633 at the end of January; New Listings in February were up 20% compared to January 2024, up 9% compared to February 2023, down 10% compared to February 2022, down 10% compared to February 2021, up 13% compared to February 2020, and up 17% compared to February 2019. Month’s supply of total residential listings is down to 5 month’s supply (balanced market conditions) and sales to listings ratio of 45% compared to 37% in January 2024, 51% in February 2023, 62% in February 2022, and 38% in February 2019. Month-over-month, the house price index is up 1.9% and in the last 6 months down 2.1%. Prices appear to be on the upswing after several months of seeing them decline through the fall.

Vancouver Westside: Total Units Sold in February were 374 - up from 245 (53%) in January, up from 235 (59%) in December up from 316 (18%) in February 2023, down from 665 (44%) in February 2022, down from 592 (37%) in February 2021, up from 367 (2%) in February 2020, up from 254 (47%) in February 2019; Active Listings were at 2,148 at month end compared to 1,923 at that time last year and 1,963 at the end of January; New Listings in February were up 10% compared to January 2024, up 31% compared to February 2023, down 15% compared to February 2022, down 1% compared to February 2021, up 32% compared to February 2020, and up 5% compared to February 2019. Month’s supply of total residential listings is down to 6 month’s supply (balanced market conditions) and sales to listings ratio of 40% compared to 29% in January 2024, 44% in February 2023, 61% in February 2022, and 29% in February 2019. Month-over-month, the house price index is up 4.0% and in the last 6 months down 0.7%.

Vancouver East Side: Total Units Sold in February were 249 - up from 164 (52%) in January, up from 148 (68%) in December up from 198 (26%) in February 2023, down from 359 (31%) in February 2022, down from 408 (39%) in February 2021, up from 243 (2%) in February 2020, up from 166 (50%) in February 2019; Active Listings were at 1,109 at month end compared to 900 at that time last year and 990 at the end of January; New Listings in February were up 9% compared to January 2024, up 43% compared to February 2023, down 16% compared to February 2022, down 6% compared to February 2021, up 23% compared to February 2020, and up 41% compared to February 2019. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 46% compared to 33% in January 2024, 52% in February 2023, 55% in February 2022, and 43% in February 2019. Month-over-month, the house price index is up 0.8% and in the last 6 months down 3.5%.

North Vancouver: Total Units Sold in February were 163 - up from 117 (39%) in January, up from 106 (52%) in December up from 1,824 (9%) in February 2023, down from 261 (38%) in February 2022, down from 318 (49%) in February 2021, down from 206 (21%) in February 2020, up from 124 (31%) in February 2019; Active Listings were at 489 at month end compared to 436 at that time last year and 414 at the end of January; New Listings in February were up 27% compared to January 2024, up 35% compared to February 2023, down 16% compared to February 2022, down 20% compared to February 2021, down 8% compared to February 2020, and up 2% compared to February 2019. Month’s supply of total residential listings is down to 3 month’s supply (seller’s market conditions) and sales to listings ratio of 48% compared to 43% in January 2024, 59% in February 2023, 64% in February 2022, and 37% in February 2019. Month-over-month, the house price index is up 1.5% and in the last 6 months down 1.8%.

West Vancouver: Total Units Sold in February were 56 - up from 23 (143%) in January, up from 41 (37%) in December up from 43 (30%) in February 2023, down from 80 (30%) in February 2022, down from 102 (45%) in February 2021, down from 57 (2%) in February 2020, up from 39 (44%) in February 2019; Active Listings were at 526 at month end compared to 443 at that time last year and 483 at the end of January; New Listings in February were down 5% compared to January 2024, up 11% compared to February 2023, down 21% compared to February 2022, up 6% compared to February 2021, up 19% compared to February 2020, and up 1% compared to February 2019. Month’s supply of total residential listings is down to 9 month’s supply from 21 in January (still buyer’s market conditions) and sales to listings ratio of 33% compared to 13% in January 2024, 28% in February 2023, 37% in February 2022, and 23% in February 2019. Month-over-month, the house price index is down 3.7% and in the last 6 months down 6.3%. 

Richmond: Total Units Sold in February were 231 - up from 161 (43%) in January, up from 169 (37%) in December up from 227 (2%) in February 2023, down from 340 (30%) in February 2022, down from 453 (49%) in February 2021, down from 253 (9%) in February 2020, up from 155 (49%) in February 2019; Active Listings were at 1,088 at month end compared to 1,036 at that time last year and 1,014 at the end of January; New Listings in February were up 13% compared to January 2024, up 1% compared to February 2023, down 34% compared to February 2022, down 30% compared to February 2021, down 8% compared to February 2020, and down 2% compared to February 2019. Month’s supply of total residential listings is down to 5 month’s supply (balanced market conditions) and sales to listings ratio of 50% compared to 39% in January 2024, 49% in February 2023, 56% in February 2022, and 33% in February 2019. Month-over-month, the house price index is up 2.9% and in the last 6 months down 1.2%.

Burnaby East: Total Units Sold in February were 25 - up from 17 (47%) in January, up from 18 (39%) in December up from 21 (19%) in February 2023, down from 34 (24%) in February 2022, down from 41 (37%) in February 2021, down from 32 (22%) in February 2020, up from 17 (47%) in February 2019; Active Listings were at 94 at month end compared to 71 at that time last year and 77 at the end of January; New Listings in February were up 20% compared to January 2024, up 200% compared to February 2023, down 7% compared to February 2022, down 6% compared to February 2021, up 58% compared to February 2020, and up 67% compared to February 2019. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 42% compared to 34% in January 2024, 105% in February 2023, 52% in February 2022, and 47% in February 2019. Month-over-month, the house price index is up 0.2% and in the last 6 months down 2.6%.

Burnaby North: Total Units Sold in February were 121 - up from 88 (38%) in January, up from 91 (33%) in December down from 134 (2%) in February 2023, down from 226 (46%) in February 2022, down from 193 (37%) in February 2021, up from 100 (21%) in February 2020, up from 84 (44%) in February 2019; Active Listings were at 447 at month end compared to 380 at that time last year and 387 at the end of January; New Listings in February were up 35% compared to January 2024, up 22% compared to February 2023, down 20% compared to February 2022, down 6% compared to February 2021, up 29% compared to February 2020, and up 56% compared to February 2019. Month’s supply of total residential listings is steady at 4 month’s supply (seller’s market conditions) and sales to listings ratio of 49% compared to 48% in January 2024, 66% in February 2023, 72% in February 2022, and 53% in February 2019. Month-over-month, the house price index is up 1.6% and in the last 6 months down 1.7%.

Burnaby South: Total Units Sold in February were 109 - up from 102 (7%) in January, up from 79 (38%) in December down from 118 (8%) in February 2023, down from 200 (45%) in February 2022, down from 201 (46%) in February 2021, up from 105 (4%) in February 2020, up from 83 (31%) in February 2019; Active Listings were at 425 at month end compared to 377 at that time last year and 398 at the end of January; New Listings in February were down 2% compared to January 2024, up 1% compared to February 2023, down 27% compared to February 2022, down 23% compared to February 2021, up 9% compared to February 2020, and up 0.5% compared to February 2019. Month’s supply of total residential listings is steady at 4 month’s supply (seller’s market conditions) and sales to listings ratio of 52% compared to 48% in January 2024, 57% in February 2023, 70% in February 2022, and 40% in February 2019. Month-over-month, the house price index is up 1.6% and in the last 6 months down 2.1%.

New Westminster: Total Units Sold in February were 79 - up from 54 (46%) in January, up from 46 (72%) in December up from 66 (20%) in February 2023, down from 159 (50%) in February 2022, down from 164 (52%) in February 2021, down from 90 (12%) in February 2020, up from 63 (25%) in February 2019; Active Listings were at 300 at month end compared to 222 at that time last year and 242 at the end of January; New Listings in February were up 43% compared to January 2024, up 79% compared to February 2023, down 15% compared to February 2022, down 12% compared to February 2021, up 25% compared to February 2020, and up 16% compared to February 2019. Month’s supply of total residential listings is steady at 4 month’s supply (seller’s market conditions) and sales to listings ratio of 41% compared to 40% in January 2024, 62% in February 2023, 70% in February 2022, and 38% in February 2019. Month-over-month, the house price index is up 0.7% and in the last 6 months down 3.1%.

Coquitlam: Total Units Sold in February were 189 - up from 112 (69%) in January, up from 119 (59%) in December up from 158 (20%) in February 2023, down from 264 (28%) in February 2022, down from 322 (41%) in February 2021, down from 196 (4%) in February 2020, up from 134 (41%) in February 2019; Active Listings were at 599 at month end compared to 466 at that time last year and 521 at the end of January; New Listings in February were up 29% compared to January 2024, up 56% compared to February 2023, down 17% compared to February 2022, down 9% compared to February 2021, up 13% compared to February 2020, and up 28% compared to February 2019. Month’s supply of total residential listings is down to 3 month’s supply (seller’s market conditions) and sales to listings ratio of 51% compared to 39% in January 2024, 67% in February 2023, 59% in February 2022, and 46% in February 2019. Month-over-month, the house price index is up 2.4% and in the last 6 months down 1.8%.

Port Moody: Total Units Sold in February were 46 - up from 31 (48%) in January, up from 25 (84%) in December down from 47 (2%) in February 2023, down from 87 (47%) in February 2022, down from 92 (50%) in February 2021, up from 36 (28%) in February 2020, up from 30 (53%) in February 2019; Active Listings were at 131 at month end compared to 200 at that time last year and 122 at the end of January; New Listings in February were up 47% compared to January 2024, down 11% compared to February 2023, down 32% compared to February 2022, down 38% compared to February 2021, down 26% compared to February 2020, and up 1% compared to February 2019. Month’s supply of total residential listings is down to 3 month’s supply (seller’s market conditions) and sales to listings ratio of 57% compared to 55% in January 2024, 52% in February 2023, 73% in February 2022, and 40% in February 2019. Month-over-month, the house price index is up 1.0% and in the last 6 months down 2.2%.

Port Coquitlam: Total Units Sold in February were 64 - up from 43 (49%) in January, up from 36 (78%) in December up from 40 (60%) in February 2023, down from 108 (40%) in February 2022, down from 122 (48%) in February 2021, down from 83 (23%) in February 2020, up from 60 (7%) in February 2019; Active Listings were at 198 at month end compared to 140 at that time last year and 155 at the end of January; New Listings in February were up 104% compared to January 2024, up 71% compared to February 2023, down 3% compared to February 2022, down 13% compared to February 2021, up 17% compared to February 2020, and up 6% compared to February 2019. Month’s supply of total residential listings is down to 3 month’s supply (seller’s market conditions) and sales to listings ratio of 43% compared to 59% in January 2024, 46% in February 2023, 71% in February 2022, and 43% in February 2019. Month-over-month, the house price index is up 3.2% and in the last 6 months down 1.2%.

Pitt Meadows: Total Units Sold in February were 23 - up from 20 (15%) in January, up from 15 (53%) in February 2023, down from 35 (34%) in February 2022, down from 48 (50%) in February 2021, down from 27 (15%) in February 2020, up from 15 (53%) in February 2019; Active Listings were at 64 at month end compared to 62 at that time last year and 57 at the end of January; New Listings in February were up 18% compared to January 2024, up 66% compared to February 2023, down 10% compared to February 2022, down 20% compared to February 2021, down 12% compared to February 2020, and up 10% compared to February 2019. Month’s supply of total residential listings is steady at 3 month’s supply (seller’s market conditions) and sales to listings ratio of 51% compared to 52% in January 2024, 55% in February 2023, 70% in February 2022, and 36% in February 2019. Month-over-month, the house price index is up 2.8% and in the last 6 months down 0.5%.

Maple Ridge: Total Units Sold in February were 145 - up from 106 (37%) in January, up from 129 (12%) in February 2023, down from 224 (35%) in February 2022, down from 292 (50%) in February 2021, down from 177 (18%) in February 2020, up from 100 (45%) in February 2019; Active Listings were at 678 at month end compared to 462 at that time last year and 563 at the end of January; New Listings in February were up 54% compared to January 2024, up 92% compared to February 2023, up 11% compared to February 2022, up 16% compared to February 2021, up 35% compared to February 2020, and up 94% compared to February 2019. Month’s supply of total residential listings is steady at 5 month’s supply (balanced market conditions) and sales to listings ratio of 36% compared to 40% in January 2024, 62% in February 2023, 62% in February 2022, and 48% in February 2019. Month-over-month, the house price index is up 1.1% and in the last 6 months down 3.6%.

Ladner: Total Units Sold in February were 23 - up from 21 (10%) in January, up from 12 (92%) in December down from 27 (15%) in February 2023, down from 26 (12%) in February 2022, down from 61 (63%) in February 2021, down from 36 (36%) in February 2020, up from 20 (15%) in February 2019; Active Listings were at 82 at month end compared to 98 at that time last year and 83 at the end of January; New Listings in February were up 20% compared to January 2024, down 39% compared to February 2023, down 35% compared to February 2022, down 55% compared to February 2021, up 45% compared to February 2020, and up 26% compared to February 2019. Month’s supply of total residential listings is steady at 4 month’s supply (seller’s market conditions) and sales to listings ratio of 62% compared to 46% in January 2024, 44% in February 2023, 46% in February 2022, and 40% in February 2019. Month-over-month, the house price index is up 0.4% and in the last 6 months down 5.0%.  

Tsawwassen: Total Units Sold in February were 38 - up from 24 (58%) in January, up from 21 (81%) in December up from 25 (52%) in February 2023, down from 73 (48%) in February 2022, down from 76 (50%) in February 2021, up from 32 (19%) in February 2020, up from 21 (81%) in February 2019; Active Listings were at 156 at month end compared to 146 at that time last year and 139 at the end of January; New Listings in February were up 47% compared to January 2024, up 42% compared to February 2023, down 26% compared to February 2022, down 27% compared to February 2021, up 39% compared to February 2020, and up 36% compared to February 2019. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 51% compared to 47% in January 2024, 47% in February 2023, 72% in February 2022, and 38% in February 2019. Month-over-month, the house price index is up 0.7% and in the last 6 months down 1.4%.

Fraser Valley: Sales in February were up 32% from January and up 38% from February 2023. New listings were up 18% from January and up 44% from February 2023. While the average price was down 0.1% month-over-month, it is up 8% year-over-year. Active listings were up 14% to 5,561 from 4,877 last month but up 26% from February 2023. After seeing steep declines, active listing counts in the region are climbing. It was a very precipitous decline over the last 3 months. Month-over-month, the house price index is up 0.9% and in the last 6 months down 4.2%. 

“There is somewhat of a buzz in the market right now,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “We are seeing new listings come onto the market and REALTORS® continue to see more traffic at open houses, however buyers are still exercising caution. We aren’t out of the woods just yet, but the signs are pointing to a further increase in activity as we head into spring.” 

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

Read

Sales and Listing Report for Jan 2024

Highlights of Dexter’s January 2024 report

  • Buyers are back! Sales in Greater Vancouver were up 39% from January 2023

  • Vancouver detached listings at the lowest level since December 2015

  • The number of new listings were only up 15% from January 2023

  • When will the Bank of Canada cut its rate?

  • The total number of sales in West Vancouver were the lowest by month since 2008

A new year, a new real estate market. Sort of. As 2024 took hold, buyers appeared to embrace homebuying more so than they did when 2023 began. Sales were up 39% in Greater Vancouver and 52% in the Fraser Valley year-over-year. Anticipation of future rate cuts were on the minds of many as they awaited the Bank of Canada’s first interest rate announcement in late January. While a rate cut wasn’t anticipated, the messaging of future rate cuts was on the minds of many. And while some predicted the next Bank of Canada meetings in March and April could be the first rate cut since the spate of increases starting in 2022, sticky inflation and a Canadian economy sidestepping a recession could keep the current Bank rate in check until June or July. Buyers don’t seem to want to wait though as market activity so far is indicating the pent-up demand can only hold off for so long.   

There were 1,427 properties sold in Greater Vancouver in January this year. This was a 39% increase from the 1,030 properties sold last year in January. And this was the first month-over-month increase in sales since May of last year. You can only keep a good market down for so long. Even with the deep freeze and snow event last month, buyers made their way out to go through the limited supply of listings, many surprised at how many were no longer available. As the temperature in January rose to finish the month, the real estate market seemed to see its temperature rise as well. Will February produce the first month with more than 2,000 sales since August? Likely yes, but that will require a few more sellers to join jump into the market as well. With this increase in activity, sales in January were 22% below the 10-year average after sales in December were 37% below the 10-year average and November’s sales were at 35% below the 10-year average. The trends and numbers certainly show an increase in buyer activity. Stats don’t lie.

With current sales, we continue to be in a balanced market with 6 months supply of homes overall in Greater Vancouver, falling back from 7 months supply in December. Vancouver’s West Side was higher in the region at 8 months supply and West Vancouver with its lowest monthly sales since December 2008 clocked in at 21 months supply of homes available. A severe buyer’s market. While its neighbour next door, North Vancouver, maintained its 4 months supply, doing its best seller’s market imitation. Burnaby North and South, New Westminster, Port Coquitlam, and Ladner all finished January with 4 months supply of listings. Ladner didn’t see any condo sales in January, but then again there are only 8 active listings and there were no new listings in December, proving you can’t buy what isn’t available. Pitt Meadows has the lowest supply in the region with only 3 months worth of listings available for buyers shopping in that city. 

With the precipitous drop in total listings we saw through the last two months of 2023, January saw 3,875 new listings. This was the third lowest number of new listings for the month of January since the year 2000. This after there were only 1,355 new listings in December after 3,440 new listings in November, but it was slightly higher than the number of new listings in January last year at 3,384. 

The number of new listings in January were 13% below the 10-year average, which is an improvement from December with the number of new listings in that month being 25% below the 10-year average. But still below the averages in the 3 months preceding December: 3% below the 10-year average in November, 5% above the 10-year average in October and 6% above the 10-year average in September. 

There were 8,633 active listings in Greater Vancouver at the end of January after seeing 8,802 active listings at the end of December. It’s rare to see the total number of active listings end with less in January then in December, but after several listings expired at the end of December, January started with 7,828 active listings. And with fewer new listings in January than is typical, that hole is hard to dig out of. Perhaps it’s a signal to sellers that the opportunity to list their home on the market is better than we’ve seen over the last year. Buyers are shopping and hoping that more sellers will list. The detached market overall remains in buyer’s market territory with 8 months supply of inventory, down from 9 months in December. Townhomes slipped down to 4 months supply and condos continue to sit just above 5 months supply of listings. The missing middle known as townhomes had a 42% absorption rate in January with sales up 82% compared to January last year. This was higher than detached at 33% absorption and sales 28% higher than January 2023 and condos at 37% absorption and sales 30% higher than January 2023. Perhaps the provincial government’s small-scale, multi-unit housing plan should have focused more on building more townhomes and row homes than 3 to 6 unit buildings scattered throughout the region.

As we start February, Ground Hogs in Canada indicated that we would see an early spring. Will we also see and early real estate market? The thought was it would depend on interest rates starting their decline, but with a little more uncertainty when that might happen, buyers seem to be wanting to get on finding their first or next home. January was an indication that buyers are back, but the question remains – where are the sellers? A slower decline in interest rates may produce a more balanced market, as long we see more listings come on the market. The sudden rise in interest rates is keeping supply out of the real estate market, not just resale, but the much-needed new product that will fuel buyers in the years to come.

Bank of Canada governor Tiff Macklem recently said that high interest rates aren’t to blame for the housing crisis and that it can’t solve the housing crisis with interest rates. That seems to fly in the face of that fact that elevated interest rates are keeping new development at bay as higher interest rates add to the cost of housing and risk for developers. The extension of the Foreign Buyer ban announced on February 4, which will be until 2027 may also limit supply and not provide more. The host of government regulations have not helped to build more supply in the real estate market and is doing the opposite.  

Here’s a summary of the numbers:

Greater Vancouver: Total Units Sold in January were 1,427 - up from 1,345 (6%) in December, down from 1,702 (16%) in November 2023, up from 1,030 (39%) in January 2023, down from 2,329 (39%) in January 2022, down from 2,454 (42%) in January 2021, down from 1,602 (11%) in January 2020, up from 1,102 (29%) in January 2019; Active Listings were at 8,633 at month end compared to 7,862 at that time last year and 8,802 at the end of December; New Listings in January were up 186% compared to December 2023, up 13% compared to November 2023, up 15% compared to January 2023, down 9% compared to January 2022, down 16% compared to January 2021, down 3% compared to January 2020, down 22% compared to January 2019. Month’s supply of total residential listings is down to 6 month’s supply (balanced market conditions) and sales to listings ratio of 37% compared to 99% in December 2023, 30% in January 2023 and 55% in January 2022. Month-over-month, the house price index is down 0.6% and in the last 6 months down 4.6%. 

Vancouver Westside: Total Units Sold in January were 245 - up from 235 (4%) in December, down from 315 (23%) in November 2023, up from 194 (26%) in January 2023, down from 445 (45%) in January 2022, down from 393 (38%) in January 2021, down from 275 (11%) in January 2020, up from 187 (31%) in January 2019; Active Listings were at 1,963 at month end compared to 1,827 at that time last year and 1,998 at the end of December (detached listings at 453 were the lowest amount since December 2015); New Listings in January were up 244% compared to December 2023, up 26% compared to November 2023, up 18% compared to January 2023, down 16% compared to January 2022, down 5% compared to January 2021, up 15% compared to January 2020, down 13% compared to January 2019. Month’s supply of total residential listings is down to 8 month’s supply (buyer’s market conditions) and sales to listings ratio of 29% compared to 95% in December 2023, 27% in January 2023 and 44% in January 2022. Month-over-month, the house price index is down 0.9% and in the last 6 months down 4.8%. 

Vancouver East Side: Total Units Sold in January were 164 - up from 148 (11%) in December, down from 175 (6%) in November 2023, up from 118 (39%) in January 2023, down from 257 (36%) in January 2022, down from 257 (36%) in January 2021, up from 161 (2%) in January 2020, up from 105 (56%) in January 2019; Active Listings were at 990 at month end compared to 867 at that time last year and 977 at the end of December; New Listings in January were up 240% compared to December 2023, up 23% compared to November 2023, up 40% compared to January 2023, up 5% compared to January 2022, down 2% compared to January 2021, up 40% compared to January 2020, up 10% compared to January 2019. Month’s supply of total residential listings is down to 6 month’s supply (balanced market conditions) and sales to listings ratio of 33% compared to 100% in December 2023, 33% in January 2023 and 54% in January 2022. Month-over-month, the house price index is down 0.6% and in the last 6 months down 3.5%. 

North Vancouver: Total Units Sold in January were 117 - up from 106 (10%) in December, down from 157 (25%) in November 2023, up from 82 (43%) in January 2023, down from 143 (19%) in January 2022, down from 179 (35%) in January 2021, up from 100 (17%) in January 2020, up from 91 (29%) in January 2019; Active Listings were at 414 at month end compared to 416 at that time last year and 392 at the end of December; New Listings in January were up 171% compared to December 2023, up 1% compared to November 2023, up 17% compared to January 2023, up 3% compared to January 2022, down 20% compared to January 2021, down 27% compared to January 2020, down 38% compared to January 2019. Month’s supply of total residential listings is steady at 4 month’s supply (seller’s market conditions) and sales to listings ratio of 43% compared to 106% in December 2023, 35% in January 2023 and 55% in January 2022. Month-over-month, the house price index is down 1.1% and in the last 6 months down 4.3%.

West Vancouver: West Vancouver saw the house price index increase 2.5% last month, but that will likely drop over the next month as sales stall in one of the highest priced neighbourhoods in the region.

Total Units Sold in January were 23 - down from 41 (44%) in December, down from 48 (52%) in November 2023, down from 28 (18%) in January 2023, down from 45 (49%) in January 2022, down from 45 (49%) in January 2021, down from 29 (21%) in January 2020, down from 26 (12%) in January 2019; Active Listings were at 483 at month end compared to 408 at that time last year and 487 at the end of December; New Listings in January were up 233% compared to December 2023, up 7% compared to November 2023, up 42% compared to January 2023, up 28% compared to January 2022, down 7% compared to January 2021, the same amount compared to January 2020, down 22% compared to January 2019. Month’s supply of total residential listings is up to 21 month’s supply (buyer’s market conditions) and sales to listings ratio of 13% compared to 76% in December 2023, 22% in January 2023 and 32% in January 2022. 

Richmond: Total Units Sold in January were 161 – down from 169 (5%) in December, down from 179 (10%) in November 2023, up from 120 (34%) in January 2023, down from 340 (53%) in January 2022, down from 277 (42%) in January 2021, down from 227 (29%) in January 2020, up from 121 (33%) in January 2019; Active Listings were at 1,014 at month end compared to 942 at that time last year and 1,043 at the end of December; New Listings in January were up 154% compared to December 2023, up 2% compared to November 2023, up 1% compared to January 2023, down 26% compared to January 2022, down 31% compared to January 2021, down 22% compared to January 2020, down 46% compared to January 2019. Month’s supply of total residential listings is steady at 6 month’s supply (balanced market conditions) and sales to listings ratio of 39% compared to 104% in December 2023, 29% in January 2023 and 61% in January 2022. Month-over-month, the house price index is down 1.1% and in the last 6 months down 4.0%. 

Burnaby East: Total Units Sold in January were 17 - down from 18 (6%) in December, up from 13 (31%) in November 2023, up from 9 (89%) in January 2023, down from 25 (32%) in January 2022, down from 28 (39%) in January 2021, down from 18 (6%) in January 2020, up from 11 (45%) in January 2019; Active Listings were at 77 at month end compared to 87 at that time last year and 75 at the end of December; New Listings in January were up 316% compared to December 2023, up 67% compared to November 2023, up 14% compared to January 2023, up 43% compared to January 2022, up 16% compared to January 2021, up 11% compared to January 2020, down 9% compared to January 2019. Month’s supply of total residential listings is up to 5 month’s supply (balanced market conditions) and sales to listings ratio of 34% compared to 150% in December 2023, 20% in January 2023 and 71% in January 2022. One of the few areas to see sales decline in January compared to December. Month-over-month, the house price index is up 0.3% and in the last 6 months down 3.5%. 

Burnaby North: Total Units Sold in January were 88 - down from 91 (3%) in December, down from 119 (26%) in November 2023, up from 63 (40%) in January 2023, down from 142 (39%) in January 2022, down from 144 (39%) in January 2021, down from 96 (8%) in January 2020, up from 65 (3%5) in January 2019; Active Listings were at 387 at month end compared to 389 at that time last year and 417 at the end of December; New Listings in January were up 137% compared to December 2023, down 1% compared to November 2023, down 8% compared to January 2023, down 23% compared to January 2022, down 24% compared to January 2021, down 12% compared to January 2020, down 15% compared to January 2019. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 48% compared to 117% in December 2023, 31% in January 2023 and 60% in January 2022. Month-over-month, the house price index is down 0.8% and in the last 6 months down 3.5%. 

Burnaby South: Total Units Sold in January were 102 - up from 79 (29%) in December, up from 83 (23%) in November 2023, up from 54 (89%) in January 2023, down from 150 (32%) in January 2022, down from 144 (29%) in January 2021, up from 90 (13%) in January 2020, up from 55 (85%) in January 2019; Active Listings were at 398 at month end compared to 352 at that time last year and 395 at the end of December; New Listings in January were up 185% compared to December 2023, up 29% compared to November 2023, up 32% compared to January 2023, down 12% compared to January 2022, down 18% compared to January 2021, up 2% compared to January 2020, down 24% compared to January 2019. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 48% compared to 105% in December 2023, 33% in January 2023 and 62% in January 2022. Month-over-month, the house price index is down 0.1% and in the last 6 months down 3.4%. 

New Westminster: Total Units Sold in January were 54 - up from 46 (17%) in December, down from 65 (17%) in November 2023, up from 40 (35%) in January 2023, down from 102 (47%) in January 2022, down from 101 (47%) in January 2021, up from 50 (8%) in January 2020, down from 75 (28%) in January 2019; Active Listings were at 242 at month end compared to 220 at that time last year and 240 at the end of December; New Listings in January were up 244% compared to December 2023, up 2% compared to November 2023, up 26% compared to January 2023, down 10% compared to January 2022, down 37% compared to January 2021, down 6% compared to January 2020, down 32% compared to January 2019. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 40% compared to 118% in December 2023, 38% in January 2023 and 61% in January 2022. Month-over-month, the house price index is down 0.1% and in the last 6 months down 3.7%. 

Coquitlam: Total Units Sold in January were 112 - down from 119 (6%) in December, down from 159 (30%) in November 2023, up from 73 (47%) in January 2023, down from 174 (36%) in January 2022, down from 225 (50%) in January 2021, down from 144 (22%) in January 2020, up from 87 (29%) in January 2019; Active Listings were at 521 at month end compared to 481 at that time last year and 527 at the end of December; New Listings in January were up 234% compared to December 2023, down 1% compared to November 2023, up 9% compared to January 2023, up 9% compared to January 2022, down 16% compared to January 2021, down 7% compared to January 2020, down 23% compared to January 2019. Month’s supply of total residential listings is up to 5 month’s supply (balanced market conditions) and sales to listings ratio of 39% compared to 138% in December 2023, 28% in January 2023 and 66% in January 2022. Month-over-month, the house price index is down 0.7% and in the last 6 months down 4.2%. 

Port Moody: Total Units Sold in January were 31 - up from 25 (24%) in December, down from 40 (22%) in November 2023, up from 23 (35%) in January 2023, down from 57 (46%) in January 2022, down from 46 (33%) in January 2021, down from 37 (16%) in January 2020, the same as January 2019; Active Listings were at 122 at month end compared to 188 at that time last year and 128 at the end of December; New Listings in January were up 75% compared to December 2023, up 35% compared to November 2023, down 46% compared to January 2023, down 30% compared to January 2022, down 26% compared to January 2021, down 14% compared to January 2020, down 33% compared to January 2019. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 55% compared to 78% in December 2023, 22% in January 2023 and 71% in January 2022. Month-over-month, the house price index is down 2.3% and in the last 6 months down 2.5%. 

Port Coquitlam: Total Units Sold in January were 43 - up from 36 (19%) in December, down from 55 (22%) in November 2023, up from 34 (26%) in January 2023, down from 77 (24%) in January 2022, down from 88 (51%) in January 2021, down from 60 (28%) in January 2020, up from 38 (13%) in January 2019; Active Listings were at 155 at month end compared to 123 at that time last year and 154 at the end of December; New Listings in January were up 87% compared to December 2023, down 19% compared to November 2023, down 6% compared to January 2023, down 30% compared to January 2022, down 54% compared to January 2021, down 43% compared to January 2020, down 49% compared to January 2019. Month’s supply of total residential listings is steady at 4 month’s supply (seller’s market conditions) and sales to listings ratio of 59% compared to 92% in December 2023, 44% in January 2023 and 73% in January 2022. Month-over-month, the house price index is down 0.4% and in the last 6 months down 4.7%. 

Pitt Meadows: Total Units Sold in January were 20 - up from 19 (5%) in December, down from 21 (5%) in November 2023, up from 15 (33%) in January 2023, down from 30 (33%) in January 2022, down from 22 (9%) in January 2021, up from 19 (5%) in January 2020, up from 10 (29%) in January 2019; Active Listings were at 57 at month end compared to 61 at that time last year and 59 at the end of December; New Listings in January were up 171% compared to December 2023, down 3% compared to November 2023, the same as January 2023, down 7% compared to January 2022, up 23% compared to January 2021, down 25% compared to January 2020, down 3% compared to January 2019. Month’s supply of total residential listings is the same at 3 month’s supply (seller’s market conditions) and sales to listings ratio of 52% compared to 135% in December 2023, 39% in January 2023 and 73% in January 2022. Month-over-month, the house price index is up 1.6% and in the last 6 months down 4.5%. 

Maple Ridge: Total Units Sold in January were 106 - up from 100 (6%) in December, up from 103 (3%) in November 2023, up from 65 (63%) in January 2023, down from 124 (15%) in January 2022, down from 194 (45%) in January 2021, down from 120 (12%) in January 2020, up from 82 (30%) in January 2019; Active Listings were at 563 at month end compared to 451 at that time last year and 579 at the end of December; New Listings in January were up 155% compared to December 2023, up 30% compared to November 2023, up 20% compared to January 2023, up 9% compared to January 2022, up 4% compared to January 2021, up 18% compared to January 2020, up 4% compared to January 2019. Month’s supply of total residential listings is down to 5 month’s supply (balanced market conditions) and sales to listings ratio of 40% compared to 98% in December 2023, 30% in January 2023 and 51% in January 2022. Month-over-month, the house price index is down 0.4% and in the last 6 months down 4.6%. 

Ladner: Total Units Sold in January were 21 - up from 12 (75%) in December, the same as November 2023, up from 16 (31%) in January 2023, down from 22 (5%) in January 2022, up from 20 (5%) in January 2021, down from 35 (40%) in January 2020, up from 16 (31%) in January 2019; Active Listings were at 83 at month end compared to 81 at that time last year and 86 at the end of December; New Listings in January were up 229% compared to December 2023, up 77% compared to November 2023, up 7% compared to January 2023, down 28% compared to January 2022, down 12% compared to January 2021, down 37% compared to January 2020, down 26% compared to January 2019. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 46% compared to 86% in December 2023, 37% in January 2023 and 61% in January 2022. Month-over-month, the house price index is down 0.5% and in the last 6 months down 5.6%. 

Tsawwassen: Total Units Sold in January were 24 - up from 21 (14%) in December, down from 27 (11%) in November 2023, up from 20 (20%) in January 2023, down from 42 (43%) in January 2022, down from 54 (56%) in January 2021, up from 21 (14%) in January 2020, up from 14 (71%) in January 2019; Active Listings were at 139 at month end compared to 137 at that time last year and 152 at the end of December; New Listings in January were up 183% compared to December 2023, up 13% compared to November 2023, down 11% compared to January 2023, down 35% compared to January 2022, down 43% compared to January 2021, down 27% compared to January 2020, down 30% compared to January 2019. Month’s supply of total residential listings is down to 6 month’s supply (balanced market conditions) and sales to listings ratio of 47% compared to 117% in December 2023, 35% in January 2023 and 54% in January 2022. Month-over-month, the house price index is down 1.2% and in the last 6 months down 2.6%. 

Fraser Valley: Sales in December were up 16% from December but up 52% from January 2023. New listings were up 163% from December and up 30% from January 2023. While the average price was up 4.4% month-over-month, it is up 13% year-over-year. Active listings were down 4% to 4,132 from 4,302 last month but up 6.5% from January 2023. It was a very precipitous decline over the last 3 months. Month-over-month, the house price index is down 0.4% and in the last 6 months down 5.9%. 

“With January sales on the rise, we are seeing hopeful signs that optimism is returning to the market,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “Anticipating that we may be at the end of the Bank of Canada rate hike cycle, it appears that more buyers are considering re-entering the market as we are starting to see more traffic at open houses.” 

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

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First Time Buyers Programs: Q&A with Stephen Jackman from ThinkMortgages

We reached out to one of our mortgage brokers with ThinkMortgages to open up a Q&A regarding several new tips for First Time Home Buyers Programs.

Stephen Jackman helped shed light on the various options available to those wishing to make the step towards purchasing. Take a look at Stephen’s thoughts on what we can expect from these programs.

What are the details regarding the First-Time Home Buyer’s incentive?

Eligible applicants who are applying for a high-ratio mortgage with a total down payment of less than 20% of the purchase price can receive a matching 5% down payment from the government to combine with their existing funds. eg. You save 5% down payment and the government will match it, therefore you have a 10% down payment. The offer goes up to 10%  for a brand new never occupied property AKA a presale. 

This is an interest-free, payment-free loan from the Government that is due to be repaid upon sale of the home or once 25 years elapse. In other words, this is a shared equity program without monthly penalties, fees or payments. 

Key Details: The program has established larger lending limits for purchases within the Vancouver and Victoria census districts. 

Household income cannot exceed $150,000 before taxes ($120,000 outside the Vancouver and Victoria census districts) 

Total borrowing including the incentive cannot exceed 4.5 times the household income. (cannot exceed 4 times the household income outside the Vancouver and Victoria census districts) 

The total borrowing in Vancouver and Victoria census districts cannot exceed $675,000 ($480,000 outside these districts). Total borrowing includes the primary mortgage and the 5% shared equity loan from the Government. 

Therefore the max purchase price in the Vancouver and Victoria census districts is $710,000 and $505,000 is the max price outside Vancouver and Victoria. 

What are the benefits of using the First Time Home Buyer’s Program?

The benefits of the FTHBI are savings! Lower total mortgage size = lower monthly costs and a lower mortgage balance upon completion of your term. Using the maximum purchase example in Vancouver and Victoria the average applicant would save approximately $150 per month on payments. $1800 difference in the first year. Over a 5-year mortgage term, this would be equal to $9000 in savings. $45,000 difference in payments over the 25-year lifespan of the mortgage loan. 

What is the First Home’s Savings Account?

A new savings account was created by the federal government to help prospective homeowners towards their down payment goals. You can make tax-deductible deposits of up to $8,000 per year for a total of $40,000 over 5 years and withdraw this money tax-free as part of a down payment for a home in Canada. This account functions exactly like a TFSA in that you can invest the monies inside the account into GICs, bonds and mutual funds. The FHSA can be opened at any major bank in Canada and can be customized and operated within your existing online banking system login. 

What is the Home Buyer’s Plan?

The home buyers plan allows prospective first-time home buyers to withdraw up to $35,000 from their RRSP to put towards the down payment on their first home purchase. You are given 15 years to repay the withdrawn money back into your RRSP during regular contribution time using an equal payment instalment plan. The program is accessed by directly contacting the institution which holds your RRSP. You can manage your own Home Buyers Plan and view the balance and payment plan using the MY CRA tax website.

 Are there any other prerequisites needed to qualify for the FHSA or the HBP?

You must be a resident of Canada and qualify as a “first-time home buyer” which by definition in Canada is having never owned a home before or lived in a home owned by your spouse or common-law partner. 

Please note there is a rare reset of this eligibility if you have owned a home in the past BUT have not owned or lived in a home owned by your spouse for the past 48 consecutive months. Eg. you owned a home, sold it and rented for 4 years- or lived in another country for 4 years, technically you are a first-time home buyer again according to the Canadian Federal Government. 

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Sales and Listing Report for Dec 2023

Highlights of Dexter’s December 2023 Report

  • Prices in Greater Vancouver were up 5% in 2023

  • Vancouver West Side detached prices showed an increase of 11.4% in 2023

  • Total number of New Listings were the lowest since 2001

  • Let the interest rate decreases begin

  • The Buying signal is now

It would seem interest rates and inflation have made for a bit of a roller coaster ride in real estate with numbers showing we’re likely at the bottom of this rough ride we’ve been on over the last 2 years. And while people will line up for Disney’s roller coaster, buyers and sellers chose to avoid the ride this year and the numbers certainly showed that. With near record lows for the number of new listings and sales volume declines for the second year in a row, the line up is forming for all those buyers and sellers that want to jump on a smoother ride in real estate. While we may have achieved balance in the real estate market by the end of 2023, will that continue in 2024? Once the Bank of Canada starts to decrease its rate, that will bring more buyers off the sidelines and create competition. Fixed rates have already started to decline. So, for those buyers ready to buy now, this is your buying signal. 

January rings in the new year and with that comes every property owner’s assessed value from B.C. Assessment. Perhaps talked about more than new year resolutions as everyone looks to see how their properties scored compared to others. It’s important to remember though that these assessments may not accurately reflect market value and these valuations were done up to July 1, 2023. In the Lower Mainland, the total assessed value of properties was up 3% compared to 2023. With Vancouver seeing a typical property up 4%, one of the highest in the region, along with Burnaby and Coquitlam while most other suburbs were at 2% and municipalities in the Fraser Valley showing a decrease of 2 to 3%. Hope had the highest decline at 13%. BC Assessment Assessor Bryan Murao said, "Most homeowners can expect only modest changes in the range of -5% to +5%. These assessment changes are notably less than previous years."  

At least we beat January, as the 1,345 properties sold in December were higher than the 1,030 sales at the start of 2023 in January. That can be seen as a positive after a year where the real estate market limped along. This after there were 1,702 properties of all types sold in Greater Vancouver in November and 1,996 sales in October. But at least there were more sales this December compared to last year where 1,303 properties sold in the last month of 2022. But still sales in December were 37% below the 10-year average after November’s sales were at 35% below the 10-year average. 

Overall, there were 26,249 sales in 2023 which was down from the 29,227 in 2022, and much less than the 44,944 sales in the fast-paced 2021. Total sales for the year were 23 per cent below the 10-year average. The last two down years were 2018 and 2019 with 25,051 and 25,679 sales respectively in those years.  Like 2022 with the first six months having the majority of sales, 2023 was no different due to interest rate hikes having their way. In the last half of 2023 there were 11,720 sales compared to 10,348 in the last half of 2022. While it’s early to call it, there is a sense of momentum change. What’s needed to help that shift in the market is more listings. There will be real estate transactions in 2024, just how many will be a function of the number of listings that come on. Sellers, buyers are waiting for you!

With current sales, we are in a balanced market with 7 months supply of homes overall in Greater Vancouver, ticking up from 6 months supply in November. With such a low volume of sales, it’s not surprising to see this. Vancouver’s West Side and West Vancouver are showing numbers above 7 months which indicates a buyer’s market. While North Vancouver, Burnaby Coquitlam, Port Coquitlam, and Pitt Meadows continue to see the shortage of listings resulting in seller’s market conditions with less than 5 months supply.  

There were only 1,355 new listings in December after 3,440 new listings in November, 4,752 new listings in October, and 5,557 new listings in September, and slightly higher than the number of new listings in December last year at 1,240. For the year, there were 50,883 new listings in Greater Vancouver, which was below the 55,028 in 2022, and 63,711 in 2021. It was also lower than the two previous down years of 2018 and 2019 where there were 55,057 and 53,267 new listings respectively. 

The number of new listings in December dropped to 25% below the 10-year average after being close to or above the average in the last 3 months: 3% below the 10-year average in November, 5% above the average in October and 6% above the average in September. For the year, new listings were 11% below the 10-year average. With these few listings it’s not surprising to see prices climb 5% year-over-year in Greater Vancouver even amid sales that were 23% below the 10-year average. A resilient market indeed.

There were 8,802 active listings in Greater Vancouver at the end of December after November finished with 10,931, compared with 11,599 active listings at the end of October and 11,382 active listings at the end of September. After several listings expired at the end of December, January started with 7,828 active listings. Last year at the end of December there were 7,791 active listings and January 2023 started with 6,853. While we do have more listings to work with currently, there are less than the 10,907 at the end of 2018 and far below the 13,902 active listing at the end of 2012. The detached market overall remains in buyer’s market territory with 9 months supply of inventory but during the month of December the absorption rate was at 91%. Townhomes and condos continue to sit just above 5 months supply of listings on the border of a seller’s market with 106% of new townhome listings selling in December and 104% of condo new listings selling that month.  

We do not have a speculation problem; we have a holding problem. More and more real estate is held instead of sold. After 25 years, the number of listings should be higher, the number of transactions should be higher. With our population growing and demographics shifting to produce more buyers, discouraging homeowners from selling will do more harm than good. The proposed anti-flipping tax tabled by the B.C. NDP along with other demand side policies will produce less listings for buyers and put more pressure on prices to increase. Government needs to entice sellers to come to the market and until policy shifts in that direction, we’ll continue to have a holding problem and with limited supply.

Here’s a summary of the numbers:

Greater Vancouver: Month-over-month, the house price index is down 2.9% in the last quarter but up 5.0% year-over-year. 

Total Units Sold in December were 1,345 down from 1,702 (21%) in November 2023, down from 1,996 (33%) in October 2023, up from 1,303 (3%) in December 2022, down from 2,737 (51%) in December 2021, down from 3,157 (57%) in December 2020, down from 2,046 (34%) in December 2019, up from 1,094 (23%) in December 2018; Active Listings were at 8,802 at month end compared to 7,791 at that time last year and 10,931 at the end of November; New Listings in December were down 21% compared to November 2023, down 71% compared to October 2023, up 9% compared to December 2022, down 32% compared to December 2021, down 46% compared to December 2020, down 19% compared to December 2019 and up 7% compared to December 2018. Month’s supply of total residential listings is up to 7 month’s supply (balanced to buyer’s market conditions – detached homes up to 9 months supply, a buyer’s market) and sales to listings ratio of 99% compared to 49% in November 2023, 105% in December 2022 and 138% in December 2021. 

Vancouver Westside: The detached home price index was down 2.5% in the last quarter, but up 11.4% over last year – the highest in the region. A sign at how much equity and less reliant on mortgages Vancouver is. Overall, the benchmark home price index in Vancouver’s West Side was up 5.4% while on the East Side it was up 7.4%. West Side condos saw their benchmark price up 1.9% year-over-year – opportunity for some buyers in that market. 

Total Units Sold in December were 235 down from 315 (25%) in November 2023, down from 352 (33%) in October 2023, down from 244 (4%) in December 2022, down from 468 (50%) in December 2021, down from 486 (52%) in December 2020, down from 356 (34%) in December 2019, up from 190 (24%) in December 2018; Active Listings were at 1,998 at month end compared to 1,869 at that time last year and 2,432 at the end of November; New Listings in December were down 63% compared to November 2023, down 75% compared to October 2023, up 2% compared to December 2022, down 38% compared to December 2021, down 42% compared to December 2020, down 19% compared to December 2019 and down 5% compared to December 2018. Month’s supply of total residential listings is up to 9 month’s supply (buyer’s market conditions) and sales to listings ratio of 95% compared to 47% in November 2023, 100% in December 2022 and 118% in December 2021.

Vancouver East Side: The benchmark price index was down 3% in the last quarter but up 7.4% over last year – with detached homes posting a 10.3% year-over-year increase which was second highest in the region. 

Total Units Sold in December were 148 down from 175 (15%) in November 2023, down from 231 (36%) in October 2023, up from 122 (21%) in December 2022, down from 295 (50%) in December 2021, down from 348 (53%) in December 2020, down from 208 (29%) in December 2019, up from 113 (31%) in December 2018; Active Listings were at 977 at month end compared to 880 at that time last year and 1,238 at the end of November; New Listings in December were down 64% compared to November 2023, down 74% compared to October 2023, up 3% compared to December 2022, down 31% compared to December 2021, down 45% compared to December 2020, down 8% compared to December 2019 and up 11% compared to December 2018. Month’s supply of total residential listings is steady at 7 month’s supply (buyer’s market conditions) and sales to listings ratio of 100% compared to 43% in November 2023, 85% in December 2022 and 137% in December 2021.

North Vancouver: Again, one of the few seller’s markets for inventory in Metro Vancouver. The benchmark price index was down 1.7% in the last quarter and up 5.2% year-over-year.

Total Units Sold in December were 106 down from 157 (32%) in November 2023, down from 194 (45%) in October 2023, down from 107 (1%) in December 2022, down from 195 (46%) in December 2021, down from 250 (58%) in December 2020, down from 155 (32%) in December 2019, up from 99 (1%) in December 2018; Active Listings were at 392 at month end compared to 385 at that time last year and 560 at the end of November; New Listings in December were down 62% compared to November 2023, down 73% compared to October 2023, up 24% compared to December 2022, down 17% compared to December 2021, down 39% compared to December 2020, down 10% compared to December 2019 and up 27% compared to December 2018. Month’s supply of total residential listings is steady at 4 month’s supply (seller’s market conditions) and sales to listings ratio of 106% compared to 59% in November 2023, 132% in December 2022 and 163% in December 2021.

West Vancouver: West Vancouver saw the house price index drop 4.9% last quarter and posted a 0.9% decline year-over-year. One of the only areas in Greater Vancouver other than the Sunshine Coast and Bowen Island to decline in 2023.  

Total Units Sold in December were 41 down from 48 (15%) in November 2023, down from 53 (23%) in October 2023, up from 40 (3%) in December 2022, down from 62 (34%) in December 2021, down from 82 (50%) in December 2020, down from 46 (11%) in December 2019, up from 30 (37%) in December 2018; Active Listings were at 487 at month end compared to 448 at that time last year and 593 at the end of November; New Listings in December were down 62% compared to November 2023, down 68% compared to October 2023, up 15% compared to December 2022, up 8% compared to December 2021, down 19% compared to December 2020, down 10% compared to December 2019 and down 16% compared to December 2018. Month’s supply of total residential listings is steady at 12 month’s supply (buyer’s market conditions) and sales to listings ratio of 76% compared to 34% in November 2023, 85% in December 2022 and 124% in December 2021

Richmond: The benchmark price index declined 2.6% in the last quarter and was up 6% in 2023 with condos leading the way at 8.9%.

Total Units Sold in December were 169 down from 179 (6%) in November 2023, down from 217 (22%) in October 2023, down from 171 (1%) in December 2022, down from 387 (56%) in December 2021, down from 343 (51%) in December 2020, down from 281 (40%) in December 2019, up from 122 (39%) in December 2018; Active Listings were at 1,043 at month end compared to 919 at that time last year and 1,258 at the end of November; New Listings in December were down 60% compared to November 2023, down 66% compared to October 2023, down 6% compared to December 2022, up 41% compared to December 2021, down 46% compared to December 2020, down 36% compared to December 2019 and down 19% compared to December 2018. Month’s supply of total residential listings is down to 6 month’s supply (balanced market conditions) and sales to listings ratio of 104% compared to 44% in November 2023, 99% in December 2022 and 140% in December 2021.

Burnaby East: The benchmark price index declined 1.9% in the last quarter and was up 6% in 2023 with detached homes leading the way at 9.5%.

Total Units Sold in December were 18 up from 13 (39%) in November 2023, down from 21 (14%) in October 2023, up from 12 (50%) in December 2022, down from 32 (44%) in December 2021, down from 41 (56%) in December 2020, down from 24 (25%) in December 2019, up from 17 (6%) in December 2018; Active Listings were at 75 at month end compared to 76 at that time last year and 93 at the end of November; New Listings in December were down 60% compared to November 2023, down 75% compared to October 2023, down 14% compared to December 2022, down 45% compared to December 2021, down 37% compared to December 2020, down 43% compared to December 2019 and down 40% compared to December 2018. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 150% compared to 43% in November 2023, 86% in December 2022 and 145% in December 2021.

Burnaby North: The benchmark price index declined 2% in the last quarter and was up 3.3% in 2023 with detached homes leading the way at 9%.

Total Units Sold in December were 91 down from 119 (23%) in November 2023, down from 137 (34%) in October 2023, up from 78 (17%) in December 2022, down from 157 (42%) in December 2021, down from 171 (47%) in December 2020, down from 113 (19%) in December 2019, up from 50 (82%) in December 2018; Active Listings were at 417 at month end compared to 353 at that time last year and 549 at the end of November; New Listings in December were down 58% compared to November 2023, down 73% compared to October 2023, up 11% compared to December 2022, down 35% compared to December 2021, down 53% compared to December 2020, up 11% compared to December 2019 and down 2% compared to December 2018. Month’s supply of total residential listings is steady at 5 month’s supply (balanced market conditions) and sales to listings ratio of 117% compared to 64% in November 2023, 111% in December 2022 and 130% in December 2021.

Burnaby South: The benchmark price index declined 2.7% in the last quarter and was up 4% in 2023 with townhomes leading the way at 9.6%.

Total Units Sold in December were 79 down from 83 (5%) in November 2023, down from 120 (34%) in October 2023, down from 94 (16%) in December 2022, down from 186 (57%) in December 2021, down from 148 (57%) in December 2020, down from 132 (40%) in December 2019, up from 51 (55%) in December 2018; Active Listings were at 395 at month end compared to 344 at that time last year and 487 at the end of November; New Listings in December were down 55% compared to November 2023, down 67% compared to October 2023, up 27% compared to December 2022, down 44% compared to December 2021, down 48% compared to December 2020, down 4% compared to December 2019 and down 26% compared to December 2018. Month’s supply of total residential listings is down to 5 month’s supply (balanced market conditions) and sales to listings ratio of 105% compared to 50% in November 2023, 159% in December 2022 and 138% in December 2021. 

New Westminster: With an average price of $800,300, New Westminster continues to scream opportunity but with a slow listing month, that may not last long. The benchmark price index declined 3% in the last quarter and was up 5.3% in 2023 with both detached homes and condos leading the way at 6.6%.

Total Units Sold in December were 46 down from 65 (29%) in November 2023, down from 81 (43%) in October 2023, down from 53 (7%) in December 2022, down from139 (67%) in December 2021, down from 151 (69%) in December 2020, down from 77 (40%) in December 2019, down from 58 (21%) in December 2018; Active Listings were at 240 at month end compared to 219 at that time last year and 302 at the end of November; New Listings in December were down 70% compared to November 2023, down 74% compared to October 2023, up 35% compared to December 2022, down 54% compared to December 2021, down 58% compared to December 2020, down 23% compared to December 2019 and down 15% compared to December 2018. Month’s supply of total residential listings is steady at 5 month’s supply (balanced market conditions) and sales to listings ratio of 118% compared to 50% in November 2023, 183% in December 2022 and 164% in December 2021.

Coquitlam: The benchmark price index declined 2.3% in the last quarter and was up 3.4% in 2023 with detached homes leading the way at 6.4%.

Total Units Sold in December were 119 down from 159 (25%) in November 2023, down from 167 (29%) in October 2023, up from 81 (47%) in December 2022, down from 216 (45%) in December 2021, down from 309 (61%) in December 2020, down from 197 (40%) in December 2019, up from 89 (34%) in December 2018; Active Listings were at 527 at month end compared to 452 at that time last year and 721 at the end of November; New Listings in December were down 70% compared to November 2023, down 79% compared to October 2023, up 13% compared to December 2022, down 44% compared to December 2021, down 59% compared to December 2020, down 37% compared to December 2019 and down 37% compared to December 2018. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 138% compared to 55% in November 2023, 107% in December 2022 and 140% in December 2021.

Port Moody: The benchmark price index declined 0.6% in the last quarter and was up 3.8% in 2023 with townhomes leading the way at 8.3%.

Total Units Sold in December were 25 down from 40 (37%) in November 2023, down from 51 (51%) in October 2023, down from 41 (39%) in December 2022, down from 52 (52%) in December 2021, down from 78 (68%) in December 2020, down from 37 (32%) in December 2019, up from 29 (14%) in December 2018; Active Listings were at 128 at month end compared to 155 at that time last year and 166 at the end of November; New Listings in December were down 63% compared to November 2023, down 62% compared to October 2023, down 24% compared to December 2022, down 18% compared to December 2021, down 37% compared to December 2020, up 14% compared to December 2019 and up 100% compared to December 2018. Month’s supply of total residential listings is up to 5 month’s supply (balanced market conditions) and sales to listings ratio of 78% compared to 47% in November 2023, 98% in December 2022 and 133% in December 2021.

Port Coquitlam: The benchmark price index declined 2.5% in the last quarter and was up 5.4% in 2023 with detached homes leading the way at 7.9%.

Another one of the few municipalities with seller’s market conditions. Total Units Sold in December were 36 down from 55 (34%) in November 2023, down from 54 (33%) in October 2023, down from 37 (3%) in December 2022, down from 107 (66%) in December 2021, down from 105 (66%) in December 2020, down from 84 (57%) in December 2019, down from 51 (29%) in December 2018; Active Listings were at 154 at month end compared to 140 at that time last year and 183 at the end of November; New Listings in December were down 57% compared to November 2023, down 66% compared to October 2023, down 11% compared to December 2022, down 41% compared to December 2021, down 62% compared to December 2020, down 32% compared to December 2019 and down 2% compared to December 2018. Month’s supply of total residential listings is up to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 92% compared to 61% in November 2023, 84% in December 2022 and 162% in December 2021.

Pitt Meadows: The benchmark price index declined 4.5% in the last quarter and was up 4.4% in 2023 with condos leading the way at 7.1%.

Total Units Sold in December were 19 down from 21 (9%) in November 2023, down from 21 (9%) in October 2023, down from 23 (17%) in December 2022, down from 33 (42%) in December 2021, down from 26 (27%) in December 2020, down from 27 (30%) in December 2019, up from 11 (27%) in December 2018; Active Listings were at 59 at month end compared to 54 at that time last year and 83 at the end of November; New Listings in December were down 56% compared to November 2023, down 70% compared to October 2023, up 16% compared to December 2022, down 50% compared to December 2021, down 30% compared to December 2020, up 8% compared to December 2019 and down 18% compared to December 2018. Month’s supply of total residential listings is down to 3 month’s supply (seller’s market conditions) and sales to listings ratio of 135% compared to 53% in November 2023, 191% in December 2022 and 117% in December 2021. 

Maple Ridge: The benchmark price index declined 3.8% in the last quarter and was up 5.5% in 2023 with detached homes leading the way at 6.7%.

Total Units Sold in December were 100 down from 103 (3%) in November 2023, down from 110 (9%) in October 2023, up from 78 (28%) in December 2022, down from 159 (37%) in December 2021, down from 214 (53%) in December 2020, down from 130 (23%) in December 2019, up from 73 (37%) in December 2018; Active Listings were at 579 at month end compared to 442 at that time last year and 718 at the end of November; New Listings in December were down 49% compared to November 2023, down 69% compared to October 2023, up 56% compared to December 2022, down 6% compared to December 2021, down 38% compared to December 2020, down 3% compared to December 2019 and up 44% compared to December 2018. Month’s supply of total residential listings is down to 6 month’s supply (balanced market conditions) and sales to listings ratio of 98% compared to 51% in November 2023, 120% in December 2022 and 145% in December 2021. 

Ladner: The benchmark price index declined 4.8% in the last quarter and was up 5.9% in 2023 with townhomes leading the way at 9.4%.

Total Units Sold in December were 12 down from 21 (43%) in November 2023, down from 24 (50%) in October 2023, up from 9 (33%) in December 2022, down from 21 (43%) in December 2021, down from 34 (65%) in December 2020, down from 20 (40%) in December 2019, down from 23 (48%) in December 2018; Active Listings were at 86 at month end compared to 72 at that time last year and 104 at the end of November; New Listings in December were down 46% compared to November 2023, down 68% compared to October 2023, the same compared to December 2022, up 17% compared to December 2021, down 53% compared to December 2020, down 53% compared to December 2019 and the same compared to December 2018. Month’s supply of total residential listings is up to 7 month’s supply (balanced market conditions) and sales to listings ratio of 86% compared to 81% in November 2023, 64% in December 2022 and 175% in December 2021. 

Tsawwassen: The benchmark price index declined 3.4% in the last quarter and was up 6.4% in 2023 with detached homes leading the way at 8.8%.

Total Units Sold in December were 21 up from 20 (5%) in November 2023, down from 27 (22%) in October 2023, down from 23 (9%) in December 2022, down from 43 (51%) in December 2021, down from 74 (72%) in December 2020, down from 26 (19%) in December 2019, up from 13 (38%) in December 2018; Active Listings were at 152 at month end compared to 130 at that time last year and 180 at the end of November; New Listings in December were down 60% compared to November 2023, down 76% compared to October 2023, down 10% compared to December 2022, down 10% compared to December 2021, down 58% compared to December 2020, down 5% compared to December 2019 and up 39% compared to December 2018. Month’s supply of total residential listings is down to 7 month’s supply (balanced market conditions) and sales to listings ratio of 117% compared to 44% in November 2023, 115% in December 2022 and 215% in December 2021. 

Fraser Valley: Sales in December were down 7% from November but up 19% from December 2022. New listings were down 56% from November but up 16% from December 2022. While the average price was down 2.5% month-over-month, it is up 4% from December 2022. Active listings were down 30% to 3,992 from 5,726 last month but up 4% from December 2022. “Back-to-back mid-year interest rate hikes slowed the market despite strong sales and new listings in the spring,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “This left the market in overall balance for the latter half of the year, albeit at low levels of activity. We anticipate 2024 will bring increased optimism on behalf of buyers and sellers as the Bank of Canada is expected to lower interest rates before mid-year.” 

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

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What is coming to the Housing Market in 2024?

The B.C. Provincial Government passed legislation this fall that will have the following impact on housing in 2024 throughout the province. Their goal is to provide more housing, provide new homes faster and keep prices from rising at the rates they have over the last decades. We have a housing affordability crisis in British Columbia, and more so in Metro Vancouver and other metropolitan regions of the province. This is an ambitious plan and requires all stakeholders to align. 

If you need help navigating these changes or have questions on how this affects you, talk to one of our Dexter Realty agents.

Short Term Rental Accommodation Restrictions: 

On October 26, 2023, the B.C. government passed the Short-Term Rental Accommodations Act. This gives local governments stronger tools to enforce short-term rental bylaws, return short-term rental units to the long-term rental housing market and establish a new Provincial role in regulating short-term rentals. B.C. has made regulations which will restrict short-term rentals to principal residences and either a secondary suite or an accessory dwelling unit (ADU) in many B.C. communities, starting May 1, 2024. 

  • The principal resident requirement applies across B.C. in municipalities with a population of 10,000 and over, as well as smaller neighbouring communities.

  • The maximum municipal ticketing fine that a local government may set has increased from $1,000 to $3,000 per infraction, per day

  • The Act will not apply to reserve lands, Nisga’a Lands or the Treaty Lands of a Treaty First Nation, hotels/motels, and a vehicle such as an RV

https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/short-term-rental-legislation 

Expansion of the Speculation and Vacancy Tax to the following areas:

The Speculation and Vacancy Tax was introduced in 2018 in British Columbia and is an annual tax based on how owners use residential properties in areas in B.C. affected most by the current housing shortage crisis. For any homes which attract the tax that are not exempt, the tax based on assessed value is 2% for foreign owners and satellite families and 0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family. There are exemptions which an owner can apply for, which can be found on the provincial government website regarding the Speculation and Vacancy Tax. Each owner on the title must complete their own declaration regardless of whether the property is exempt or not if the property is in the affected area, and these declarations must be done by March 31. Any tax owing would be due on the first business day of the following July.

The following areas were added to the Speculation and Vacancy Tax for 2024. You can use this interactive map to see if your property would be in an area that would require a declaration as a taxable area. https://map-spec-tax-areas.apps.gov.bc.ca/ 

  • Vernon, Coldstream;

  • Penticton, Summerland;

  • Lake Country, Peachland;

  • Courtenay, Comox, Cumberland;

  • Parksville, Qualicum Beach;

  • Salmon Arm; and

  • Kamloops.

For more information on the Speculation and Vacancy Tax please go to this link: https://www2.gov.bc.ca/gov/content/taxes/speculation-vacancy-tax 

Homes For People Action Plan

The B.C. government has introduced new housing legislation to deliver more small-scale, multi-unit housing for people, including townhomes, triplexes, and laneway homes, and to fix outdated zoning rules to help build more homes faster. Also, they will require municipalities to update bylaws to allow for secondary suites. Through Bill 44 and Bill 46, their goal is to provide homes for the “missing middle” and improve the speed at which they come to the market. Municipalities will have until June 30, 2024, to update their zoning bylaws to meet the legislative requirements. They will also be required to update their housing needs report to understand current housing needs over the next 20 years.  

  • Permit secondary suites in single-family dwellings or additional dwelling units

  • A pilot program will provide a forgivable loan of up to $40,000 to people to convert a portion of their home into a secondary suite to rent out at below-market rates.

  • Permit three to four units on lots currently zoned for single-family or duplex use, depending on lot size.

  • Permit six units permitted on larger lots currently zoned for single-family or duplex use and close to transit stops with frequent service.

  • Eliminating the need for public hearings for OCP-compliant projects

  • Structure for Development Cost Charges

This link provides information on these legislative changes and a provincial policy manual on how this will apply to communities.

https://www2.gov.bc.ca/gov/content/housing-tenancy/local-governments-and-housing/housing-initiatives#transit-oriented-development-areas

Transit Orientated Development 

This legislation is an approach to land use planning that locates high-density, mixed-use development within walking distance from frequent transit services. The goal is to provide more housing where it is best suited and to create complete, livable, and sustainable communities by building these homes near transit and services. 

  • The new legislation will require some municipalities to designate Transit-Oriented Development Areas (TOD Areas) near transit hubs. These TOD Areas are defined as areas within 800 metres of a rapid transit station (e.g., SkyTrain station) and 400 metres of a bus exchange and West Coast Express that the Province has listed in regulations.

  • Ensure minimum levels of density, size, and dimension established by the Province in regulations are allowed in TOD Areas. These will vary by municipality and may vary within the TOD Area. Local governments can approve densities that exceed the provincial regulations at their discretion.

  • Remove restrictive parking minimums for off-street residential and allow parking volumes to be set by the market need and demand.

  • There have been 52 areas designated to take immediate effect, and by June 30, 2024, local governments must list the transit stations designated for Transit Orientated Development.

This link provides information on Transit Orientated Development along with the areas designated for this and the policy manual for this legislation.

https://www2.gov.bc.ca/gov/content/housing-tenancy/local-governments-and-housing/housing-initiatives#transit-oriented-development-areas

It is important to understand that while this legislation has been passed, there are still decisions that municipalities need to make and implement for the legislation to be fully understood and put into practice. The framework has been created, now the structure inside it will come in the months ahead.

Please reach out if we can assist further with information or how these changes may impact your real estate decisions. Our Dexter agents are ready to help!

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Sales and Listing Report for Nov 2023

Highlights of Dexter’s November 2023 Report

  • New Westminster’s average price is the lowest in the region

  • Interest rates are coming down… soon.

  • 2023 will have the lowest annual number of new listings since 2002

  • West Vancouver House Price Index down 3.7% month-over-month

  • BC NDP quickly pass a number of bills to boost supply and curb speculation 

The numbers don’t paint a pretty picture. Month-over-month decline in sales, below the 10-year average, and low absorption rates mean fewer new listings are being bought. But there is an optimistic tone to the real estate market and one that will likely see the tilt towards more activity come after the Bank of Canada rate announcement on December 6th. The end of the rate increases has come and the tone to quicker and sooner rate decreases is upon us. The announcement by Canada’s Central Bank is more about tone than actual change in rates and judging by the commentary in markets and by economists, it's time to start the move downward. 


December is always one of the slowest months for sales. The holiday season and the hangover after always impacts buyers and sellers. It’s more about decorating homes for the occasions than staging them for buyers. We’ve passed the high point in total listings, and the march to the end of the year will see less and less to choose from. But we’re still 13.4 percent higher than last year at this time. Whether January produces enough new listings to continue the price declines we’ve already seen in the last few months remains to be seen. But as we’ve said, buyers, your time is now. 

November felt more like the 12 Housing Announcements for Christmas with provincial and federal governments putting forward policy after policy on how to create affordability and build more homes. From programs to help buyers save, to density in neighbourhoods and around transit to eliminating short-term rentals in many regions across British Columbia. Nary a stone was left unturned when it came to putting policy forward in November. Will it work? That’s the big question. Will it produce 130,000 homes over the next 10 years in British Columbia and reduce prices by 14% as claimed by the BC NDP? Without modelling, it’s just a wish and one that the NDP has made for Christmas with the numerous bills passed in the legislature at the end of November. 

Below 2,000 we continue to go as there were 1,702 properties of all types sold in Greater Vancouver in November after seeing 1,996 sales in October. A similar trend to last year through the fall, although this year’s numbers have been higher. There were 1,625 sales in Greater Vancouver in November 2022 – so it is not all bad in the market especially when we look at 2018 when there were 1,633 sales in November. Total sales for 2023 in Greater Vancouver will likely finish just over 26,000 – down from the 29,227 in 2022. Although this would still be higher than the total sales for the years of 2018 and 2019 at 25,051 and 25,679 respectively. But alas, sales in November were 35% below the 10-year average, compared to 31% below the 10-year average in October.


There is optimism in the real estate market. Perhaps the lack of rate increases by the Bank of Canada through the fall gave some buyers and sellers reason to break free of the stalemate. There’s a noticeable uptick in activity for some listings and it’s resulting in sales for some longer-standing listings. 


With current sales, we are in a balanced market with 6 months supply of homes overall in Greater Vancouver while some areas are experiencing less inventory and positioned more in a seller’s market based on total inventory. North Vancouver and Port Moody are sitting with 3 3-month supply, while Burnaby North and South, New Westminster and Port Coquitlam were left with 4 4-month supply. Coquitlam has seen quick growth in inventory in the last 2 months, going from 599 active listings in August to 778 at the end of October. This growth is mainly in the condo and townhouse sectors but still sits with 4 4-month supply. 

There were 3,440 new listings in November after 4,752 new listings in October, compared with 5,557 new listings in September, and slightly higher than the number of new listings in November last year at 3,141. By the end of 2023 though, there will likely be 51,500 total new listings for the year which would be the lowest annual new listing count going back to 2002.

The number of new listings in November had declined to 3% above the 10-year average, compared with October with the count being 5% above the 10-year average and September with 6% above the 10-year average. We are seeing more new listings in comparison to sales levels which is helping keep active listing counts higher than the last two years, meaning more opportunity for buyers and with a slower pace of sales, the opportunity to negotiate and have time for due diligence.  

There were 10,931 active listings at month end in Greater Vancouver compared with 11,599 active listings at the end of November and 11,382 active listings at the end of September. With absorption rates much lower than is typical for November, listings are staying on the market longer and the traditional decline in active listings we are seeing in the later part of the year has been much slower. While all areas saw a decline in active listings overall, in some areas there was an increase in condo inventory month-over-month. The detached market overall remains in buyer’s market territory with 8 months supply of inventory but during the month of November the absorption rate was the highest at 52% compared to townhomes and condos, in part to lesser growth in new listings. Townhomes and condos sit just above 5 months supply of listings, bordering on a balanced market after being in seller’s market territory for some time.


Here’s a summary of the numbers:


Greater Vancouver: Month-over-month, the house price index is down 1% and only up 4.9% year-over-year. Total Units Sold in November were 1,702, down from 1,996 (15%) in October 2023, down from 1,926 (12%) in September 2023, up from 1,625 (5%) in November 2022, down from 3,492 (51%) in November 2021, down from 3,131 (46%) in November 2020, down from 2,546 (33%) in November 2019; Active Listings were at 10,931 at month end compared to 9,633 at that time last year and 11,599 at the end of October; New Listings in November were down 28% compared to October 2023, down 38% compared to September 2023, up 10% compared to November 2022, down 15% compared to November 2021, down 17% compared to November 2020 and up 12% compared to November 2019. Month’s supply of total residential listings is steady at 6 month’s supply (balanced market conditions – detached homes at 8 months supply, a buyer’s market) and sales to listings ratio of 49% compared to 42% in October 2023, 52% in November 2022 and 87% in November 2021. 

Vancouver Westside: The detached home price index was up 0.9% last month, and up 9.8% over last year – the highest in the region. Total Units Sold in November were 315, down from 352 (10%) in October 2023, down from 338 (7%) in September 2023, up from 306 (%3) in November 2022, down from 647 (51%) in November 2021, down from 470 (33%) in November 2020, down from 406 (22%) in November 2019. Detached and townhouses sales were up year-over-year while condo sales were flat compared to last year. Active Listings were at 2,432 at month end compared to 2,300 at that time last year and 2,629 at the end of October – detached active listings down year-over-year – an anomaly in the market. New Listings in November were down 32% compared to October 2023, down 41% compared to September 2023, down 10% compared to November 2022, down 22% compared to November 2021, down 16% compared to November 2020 and up 19% compared to November 2019. Month’s supply of total residential listings is up to 8 month’s supply (buyer’s market conditions) and sales to listings ratio of 47% compared to 35% in October 2023, 41% in November 2022 and 75% in November 2021.

Vancouver East Side: The house price index was up 8.9% over last year – a trend for Vancouver overall that will continue as the supply of detached homes declines due to densification. Total Units Sold in November were 175, down from 231 (24%) in October 2023, down from 192 (9%) in September 2023, up from 167 (5%) in November 2022, down from 385 (54%) in November 2021, down from 364 (52%) in November 2020, down from 310 (43%) in November 2019; Active Listings were at 1,238 at month end compared to 1,045 at that time last year and 1,265 at the end of October (townhouse active listing counts were up compared to October); New Listings in November were down 28% compared to October 2023, down 35% compared to September 2023, up 23% compared to November 2022 (townhouses were up 46%), down 19% compared to November 2021, down 14% compared to November 2020 and up 20% compared to November 2019. Month’s supply of total residential listings is up to 7 month’s supply (balanced market conditions) and sales to listings ratio of 43% compared to 41% in October 2023, 50% in November 2022 and 76% in November 2021.

North Vancouver: One of the few seller’s markets for inventory in Metro Vancouver. Total Units Sold in November were 157, down from 194 (19%) in October 2023, down from 169 (7%) in September 2023, up from 149 (5%) in November 2022, down from 247 (36%) in November 2021, down from 264 (40%) in November 2020, down from 217 (28%) in November 2019; Active Listings were at 560 at month end compared to 529 at that time last year and 621 at the end of October; New Listings in November were down 28% compared to October 2023, down 44% compared to September 2023, up 3% compared to November 2022, down 7% compared to November 2021, down 20% compared to November 2020 and up 17% compared to November 2019. Month’s supply of total residential listings is up to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 59% compared to 52% in October 2023, 57% in November 2022 and 87% in November 2021.

West Vancouver: West Vancouver saw the house price index drop by 3.7% last month, strangely driven by a 3.8% decline in the condo house price index. Detached sales in November were 33 compared to 16 in November 2022, with the overall average price jumping to the highest figure since May 2022. Total Units Sold in November were 48, down from 53 (9%) in October 2023, down from 53 (9%) in September 2023, up from 28 (71%) in November 2022, down from 81 (41%) in November 2021, down from 90 (47%) in November 2020, down from 66 (27%) in November 2019; Active Listings were at 593 at month end compared to 561 at that time last year and 609 at the end of October; New Listings in November were down 16% compared to October 2023, down 44% compared to September 2023, up 25% compared to November 2022, up 22% compared to November 2021, down 25% compared to November 2020 and up 21% compared to November 2019. Month’s supply of total residential listings is up to 12 month’s supply (buyer’s market conditions) and sales to listings ratio of 34% compared to 32% in October 2023, 25% in November 2022 and 70% in November 2021.

Richmond: Strength in the detached market saw the house price index rise 0.3% last month. Total Units Sold in November were 179, down from 217 (17%) in October 2023, down from 256 (30%) in September 2023, down from 210 (15%) in November 2022 (detached sales were up year-over-year), down from 481 (63%) in November 2021, down from 335 (47%) in November 2020, down from 273 (34%) in November 2019; Active Listings were at 1,258 at month end compared to 1,108 at that time last year and 1,268 at the end of October (condo active listings were up month-over-month); New Listings in November were down 16% compared to October 2023, down 32% compared to September 2023, up 36% compared to November 2022, down 21% compared to November 2021, down 23% compared to November 2020 and up 5% compared to November 2019. Month’s supply of total residential listings is up to 7 month’s supply (balanced market conditions) and sales to listings ratio of 44% compared to 45% in October 2023, 70% in November 2022 and 94% in November 2021.

Burnaby East: Total Units Sold in November were 13, down from 21 (38%) in October 2023, down from 18 (28%) in September 2023, down from 14 (7%) in November 2022, down from 33 (61%) in November 2021, down from 37 (65%) in November 2020, down from 33 (61%) in November 2019; Active Listings were at 93 at month end compared to 88 at that time last year and 105 at the end of October (condo active listing count up month-over-month and year-over-year); New Listings in November were down 37% compared to October 2023, down 39% compared to September 2023, down 19% compared to November 2022, down 23% compared to November 2021, down 21% compared to November 2020 and down 19% compared to November 2019. Month’s supply of total residential listings is up to 7 month’s supply (balanced market conditions) and sales to listings ratio of 43% (detached at 86%) compared to 44% in October 2023, 38% in November 2022 and 85% in November 2021. The house price index was down 2.2% last month only up 4.6% since last year.

Burnaby North: Total Units Sold in November were 119, down from 137 (13%) in October 2023, up from 113 (5%) in September 2023, up from 92 (29%) in November 2022, down from 185 (36%) in November 2021, down from 156 (24%) in November 2020, down from 137 (13%) in November 2019; Active Listings were at 549 at month end compared to 416 at that time last year and 598 at the end of October; New Listings in November were down 36% compared to October 2023, down 39% compared to September 2023, up 16% compared to November 2022, down 15% compared to November 2021, down 24% compared to November 2020 and up 42% compared to November 2019. Month’s supply of total residential listings is up to 5 month’s supply (balanced market conditions) and sales to listings ratio of 64% (90% for townhomes) compared to 47% in October 2023, 57% in November 2022 and 84% in November 2021. The house price index was down 1.8% year-over-year.

Burnaby South: Total Units Sold in November were 83, down from 120 (31%) in October 2023, down from 126 (34%) in September 2023, down from 118 (30%) in November 2022, down from 225 (63%) in November 2021, down from 159 (48%) in November 2020, down from 167 (50%) in November 2019; Active Listings were at 487 at month end compared to 425 at that time last year and 515 at the end of October; New Listings in November were down 27% compared to October 2023, down 40% compared to September 2023, down 5% compared to November 2022, down 26% compared to November 2021, down 19% compared to November 2020 and down 5% compared to November 2019. Month’s supply of total residential listings is up to 6 month’s supply (balanced market conditions) and sales to listings ratio of 50% compared to 53% in October 2023, 68% in November 2022 and 100% in November 2021. The house price index was down 1.4% year-over-year.

New Westminster: With an average price of $775,593, New Westminster continues to offer the best value in the region. And the house price index at $828,200 is only $7,400 above the Sunshine Coast. Total Units Sold in November were 65, down from 81 (20%) in October 2023, down from 72 (10%) in September 2023, the same as 65 in November 2022, down from 177 (63%) in November 2021, down from 137 (53%) in November 2020, down from 123 (47%) in November 2019; Active Listings were at 302 at month end compared to 292 at that time last year and 305 at the end of October; New Listings in November were down 14% compared to October 2023, down 24% compared to September 2023, up 2% compared to November 2022, down 27% compared to November 2021, down 22% compared to November 2020 and up 35% compared to November 2019. Month’s supply of total residential listings is up to 5 month’s supply (balanced market conditions) and sales to listings ratio of 50% compared to 53% in October 2023, 51% in November 2022 and 99% in November 2021.

Coquitlam:
The house price index is only up 2.7% year-over-year, more inventory is helping keep prices in check. Total Units Sold in November were 159, down from 167 (5%) in October 2023, down from 170 (%) 6in September 2023, up from 134 (19%) in November 2022, down from 289 (45%) in November 2021, down from 260 (39%) in November 2020, down from 210 (24%) in November 2019; Active Listings were at 721 at month end compared to 582 at that time last year and 778 at the end of October; New Listings in November were down 29% compared to October 2023, down 35% compared to September 2023, up 17% compared to November 2022, down 10% compared to November 2021, down 23% compared to November 2020 and up 34% compared to November 2019. Month’s supply of total residential listings is steady at 5 month’s supply (detached in a buyer’s market and townhomes and condos a seller’s market) and sales to listings ratio of 55% compared to 41% in October 2023, 54% in November 2022 and 89% in November 2021.

Port Moody: This is an inventory starved market, hopefully proposed development along St.Johns Steet will help. Even with low inventory, the house price index is down 1.2% from last month. Total Units Sold in November were 40, down from 51 (12%) in October 2023, down from 44 (9%) in September 2023, up from 33 (21%) in November 2022 – condo sales were up 72% year-over-year, down from 61 (34%) in November 2021, down from 67 (40%) in November 2020, down from 43 (7%) in November 2019; Active Listings were at 166 at month end compared to 194 at that time last year and 170 at the end of October; New Listings in November were up 1% compared to October 2023, down 17% compared to September 2023, up 2% compared to November 2022, up 18% compared to November 2021, up 1% compared to November 2020 and up 79% compared to November 2019. Month’s supply of total residential listings is up to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 47% compared to 60% in October 2023, 38% in November 2022 and 84% in November 2021.

Port Coquitlam: Another one of the few municipalities with seller’s market conditions. Total Units Sold in November were 55, up from 54 (2%) in October 2023, down from 65 (15%) in September 2023, up from 39 (13%) in November 2022 – townhouse sales were up 142% year-over-year, down from 127 (57%) in November 2021, down from 102 (56%) in November 2020, down from 90 (39%) in November 2019; Active Listings were at 183 at month end compared to 183 at that time last year and 201 at the end of October; New Listings in November were down 21% compared to October 2023, down 35% compared to September 2023, down 1% compared to November 2022, down 21% compared to November 2021, down 24% compared to November 2020 and down 27% compared to November 2019. Month’s supply of total residential listings is down to 3 month’s supply (seller’s market conditions) and sales to listings ratio of 61% (113% for townhouses) compared to 47% in October 2023, 43% in November 2022 and 111% in November 2021. The house price index is down 0.7% from last month but up 6.2% from last year. 

Pitt Meadows: Total Units Sold in November were 21, the same as 21 in October 2023, down from 24 (12%) in September 2023, down from 22 (4%) in November 2022, down from 32 (34%) in November 2021, down from 46 (54%) in November 2020, down from 24 (12%) in November 2019; Active Listings were at 83 at month end compared to 82 at that time last year and 91 at the end of October; New Listings in November were down 17% compared to October 2023, down 28% compared to September 2023, up 39% compared to November 2022, down 11% compared to November 2021, up 3% compared to November 2020 and up 105% compared to November 2019. Month’s supply of total residential listings is down to 4 month’s supply (seller’s market conditions) and sales to listings ratio of 53% compared to 44% in October 2023, 78% in November 2022 and 72% in November 2021. The house price index was down 0.8% last month but up 5.7% since last year. 

Maple Ridge: Total Units Sold in November were 103, down from 110 (6%) in October 2023, down from 108 (5%) in September 2023, up from 94 (10%) in November 2022, down from 198 (48%) in November 2021, down from 176 (41%) in November 2020, down from 169 (39%) in November 2019; Active Listings were at 718 at month end compared to 543 at that time last year and 774 at the end of October; New Listings in November were down 39% compared to October 2023, down 44% compared to September 2023, up 4% compared to November 2022, down 8% compared to November 2021, down 2% compared to November 2020 and down 6% compared to November 2019. Month’s supply of total residential listings is steady at 7 month’s supply (balanced market conditions) and sales to listings ratio of 51% compared to 33% in October 2023, 49% in November 2022 and 90% in November 2021. The house price index was down 1.7% last month but up 4.3% since last year.

Ladner: Total Units Sold in November were 21, down from 24 (12%) in October 2023, down from 26 (19%) in September 2023, up from 16 (31%) in November 2022, down from 41 (49%) in November 2021, down from 47 (55%) in November 2020, down from 42 (50%) in November 2019; Active Listings were at 104 at month end compared to 83 at that time last year and 119 at the end of October; New Listings in November were down 41% compared to October 2023, down 60% compared to September 2023, up 13% compared to November 2022, down 35% compared to November 2021, down 32% compared to November 2020 and down 49% compared to November 2019. Month’s supply of total residential listings is steady at 5 month’s supply (balanced market conditions) and sales to listings ratio of 81% (100% for townhomes and condos) compared to 55% in October 2023, 70% in November 2022 and 103% in November 2021. The house price index was down 2.0% last month, but up 6.4% since last year.

Tsawwassen: Total Units Sold in November were 20, down from 27 (26%) in October 2023, down from 42 (52%) in September 2023, down from 31 (35%) in November 2022, down from 52 (61%) in November 2021, down from 55 (64%) in November 2020, down from 36 (44%) in November 2019; Active Listings were at 180 at month end compared to 150 at that time last year and 188 at the end of October; New Listings in November were down 40% compared to October 2023, down 39% compared to September 2023, up 50% compared to November 2022, down 8% compared to November 2021, down 42% compared to November 2020 and up 2% compared to November 2019. Month’s supply of total residential listings is up to 9 month’s supply (buyer’s market conditions) and sales to listings ratio of 44% compared to 36% in October 2023, 103% in November 2022 and 106% in November 2021. Tsawwassen showed a 0.9% increase in the house price index last month, up 6.3% since last year.

Fraser Valley: Sales in November were down 8.1% from October but up 6.2% from November 2022. New listings were down 19.9% from October but up 19.2% from November 2022. While the average price was unchanged month-over-month, it is up 10.4% from November 2022. Active listings were down 5% from last month but up 17% from November 2022. “As we head into the holiday season, buyers and sellers are busy with other priorities and will most likely continue to wait on the sidelines,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “We anticipate this holding pattern, defined by slow sales and declining new listings, will continue through the winter months until we see some downward movement in interest rates.”

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

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Sales and Listing Report for Oct 2023

Highlights of Dexter’s October 2023 Report

  • Economists now predict interest rates will fall by 2.5%

  • Median home prices are down this year in virtually every Metro market

  • Priciest detached markets lead the sales curve in Metro Vancouver

  • Province mandates 2-4 housing units on every detached house lot

  • Buyer’s market conditions now dominate suburban housing markets

Sometimes you just wonder about the short memories of Metro Vancouver home buyers and sellers. How many times have people been moaning about a tick-up in mortgage rates, about a perceived lack of homes, about too many investors and the lack of affordability. About world events hurtling us to a recession.

Plenty, so it sounds as familiar today as it did in say 2000, or in the misty past of four weeks ago when headlines and pundits were all about a housing shortage, soaring interest rates and rising home prices. 

Yet, if one looks at the Metro Vancouver market this October of 2023, it is the most welcoming environment in years for both buyers and sellers.  But many appear blinded by the brilliance of what is in plain sight. Is it time for a reality check?

Housing shortage?  The Canadian Press headline this week is “Housing supply outpacing demand in Vancouver market.” This is because there are now 11,599 homes for sale in Greater Vancouver, up 12.6% from a year ago and above the 10-year average. The Fraser Valley has another 6,580 active listings, 17% higher than in October 2022. That is a total of more than 18,000 residential properties for sale, yet total October sales in the entire region were less than 3,000. Message: there is a terrific selection of homes for sale right across the Lower Mainland.

Soaring interest rates? The Bank of Canada did not increase interest rates at the October setting and now there is growing belief that rates will be coming down, perhaps as early in Q2 2024.  Economists, including those at Desjardins. “We’re not going back to zero. But I could see rates falling to about 2.5% in terms of the Bank of Canada’s policy rate,” Desjardins told Bloomberg News. Among the reasons is that many people who took out mortgages during the 2020-21 boom will renewing next year and the Bank of Canada is feeling the pressure. 


Rising home prices? The median price of a detached house over the first 10 months of this year is down in nearly every market except Vancouver, West Vancouver and Surrey. The median – when half the prices are above and half below the line – provides a clear trendline. For clarity the Real Estate Board of Greater Vancouver uses median prices to show year-over-year and month-over-month trends in its internal sales and listing reports. This shows that, since October 2022, detached house prices are down $126,500 in both Burnaby and South Delta; down $168,000 in Port Moody, $50,000 lower in Richmond and down $100,000 in North Vancouver. 

For buyers this is great time to be shopping for a home, with lower prices, a huge selection and stable and soon to be falling mortgage rates. Buyers are very price sensitive  and there is a feeling of being able to negotiate and having the upper hand on sellers. While some areas may appear to be in a seller’s market, buyers don’t believe it and are trying to get the deals they have long been hoping for. This will continue into 2024 until the first interest rate declines start. Buyers, your time is now.

Sellers, especially those in top-tier markets of Vancouver and West Vancouver, or with prime listings anywhere, are attracting traffic and there have been some multiple offers.  In many markets, including North Vancouver, Burnaby South, Port Moody, New Westminster and Ladner, the sales-to-new-listing ratio is higher than 50% and competing bids are not unheard of in the current market.

There is also a wild card in the housing mix now. The B.C. Housing Ministry has confirmed that every detached housing lot in the province (except Vancouver, which has a similar density plan) will now be allowed to add three to four new housing units. But it is up to the discretion of the host municipality whether these new units are rentals or strata units, or a combination of both. (Most members of the Union of B.C. Municipalities appear to be leaning towards rentals.) Investors should ascertain what type of housing will be allowed under the local upzoning, but the new rules will certainly increase the demand for single-detached properties and land assemblies right across the province.

One thing is likely certain: five, 10 or even one year from now, many will be looking back to the autumn of 2023 and saying, ”I should have bought then.”     

Regional Reports for Metro Vancouver October 2023 

Greater Vancouver: Total residential sales just missed the 2,000 mark, reaching 1,996 in October, which was up 4% from a month earlier and also up 4% from October of 2022. We are seeing a balanced market with total listings of 11,599, up from 10,305 a year ago. The sales-to-new-listing ratio is running at 42%, down from 47% in October 2022 but reflective of a solid market. By property type, the sales ratio to total active listings is 12.9 per cent for detached houses, 20.9 per cent for attached, and 21.5 per cent for apartments. The benchmark price for all residential properties is currently $1,196,500, a 4.4% increase over October 2022 and a 0.6% decrease compared to September 2023. The benchmark price for a detached home is $2,001,400.This is a 5.8% increase from October 2022 and a 0.8% decrease compared to September 2023. The benchmark price of an apartment home is $770,200, up 6.4% from October 2022. The townhouse benchmark price is $1,100,500, up 6% from last October. All strata prices were up 0.2% compared to September 2023.

Vancouver Westside: It is the higher end of the housing ladder that is holding firm on the Westside. Despite a median price of $3.36 million more detached houses – 71 – sold in October than in a month or a year earlier and were the second highest of any Greater Vancouver market. The sales-to-listing ratio for detached houses, at 45% was the highest for any sector on the Westside. At the same time, when the most expensive new condo tower – Curv - began pre-selling in the West End, 100 condos sold despite starting prices at more than $2,000 per square foot.  Even with total condo sales down from September, October condo transactions averaged 8 per day at a median price of $844,800. Two-bedroom condos are the tougher sale in this current market. This is flagged as a buyer’s market due to a higher supply, but with a 35% sales ratio despite an increase in active listings to 2,629 properties.

Vancouver East Side: Townhouse and duplex sales almost doubled in October compared to September, with the benchmark townhouse price up 10% year-over-year to $1,118,500. Detached house sales, at 78, were the highest in Greater Vancouver with a median price of $2,045,000. Total units sold in October were 231 up 20% from both September 2023 and October 2022. The supply of total residential listings is down to 5-month’s supply and the sales-to -listings ratio of 41% compares to 31% in September 2023 and 44% in October 2022. This is technically a balanced market, but it feels like a seller’s advantage at times.

North Vancouver: With total transactions of 194, October marked the highest monthly sales since June 2023 and slightly higher (up 0.5%) from October 2022. Condos led the sales pace, with 98 transactions at median of $826,500, while 59 detached house sold at a median of $2,050,000 – a price $50,000 lower than a year ago. Active listings were at 621 at month end compared to 614 at that time last year and 627 at the end of September, but new listings in October were down 22% compared to September. This is a seller’s market with total residential listings down to a 3 month’s supply and sales to listings ratio of 52% compared to 35% in September 2023.

West Vancouver:  Evan at a median price of $3,650,000, detached house sales led the West Vancouver market, with 27 sales, tied with the same month a year earlier, though condos posted the strongest uptake, with 60% of the new listings selling at a median of $1,320,000, by far the highest price of any B.C. market. Total active listings were 609 at month end compared to 589 at that time last year and 626 at the end of September , though new listings in October were down 33% compared to September 2023. This is a buyer’s market, despite the premium prices, with an 11-month supply of listings and a sales ratio of 32%, highest for an October in two years.

Richmond: This is a buyer’s market due to the healthy six-month supply of 1,268 active listings, but sellers are still attracting buyers, as total monthly transactions are steady at 217,  the benchmark price 5.6% higher than in October 2022 and the sales-to-listing ratio is running at 45%, up from 43% in September 2023. A glitch is in the condo market, especially in new projects, where an October sales downturn is related both to higher lending rates and new  provincial legislation banning many short-term rentals. Still, benchmark condo prices remain 10% higher than a year ago, at $736,400. Benchmark detached house prices, at $2,155,600, have not budged in six months.

Burnaby East: This is the only balanced market in Burnaby, with 21 total sales in October and active listings at 105 at month end, resulting in a 5-month supply of listings and new listings selling at ratio of 45%. Benchmark prices are also balanced, with the composite up 1% from September 2023 at $1,192,600, the highest in Burnaby.

Burnaby North: A seller’s market in October saw total sales jump 21% from a month earlier to 137 transactions as new listings dropped 4% and the sales-to-listing ratio firmed at 47%, nearly equal to October 2023. With a total 4-month supply of active listings and benchmark prices up across all sectors, sellers are excited. Higher demand is expected for detached houses as the provincial zoning for two to four new housing units on detached lots rolls out. The Burnaby mayor fears speculation will drive house prices – already up 7.2% from a year ago in North Burnaby to $2,070,000 – even higher. 

Burnaby South: With the highest benchmark detached house prices in Burnaby, at $2,199,700 in October, and total sales at 120, nearly even with a year ago, this is a seller’s market. There were just 515 active listings at months end and new listings were down 19% from September. With a just a 4-month supply and the sales ratio at healthy 53%, this is could be the hottest Burnaby market this autumn. 

New Westminster: Detached house buyers are apparently discovering that New Westminster prices, now benchmarked at $1,550,700, are about $200K to $500K lower than in neighbouring Burnaby or Coquitlam and just 3.2% higher than a year ago. The higher detached sales in October– at 16 nearly double that in October 2022 – could also reflect investors looking to assemble lots because the Royal City is keen on the new provincial higher-density regulations. Note that the townhouse benchmark price is $963,700, so adding 2 strata units to a detached lot should prove profitable. All in all, this is a seller’s market with a tight 4-month supply of total listings and a sales-to-listing ratio at 53%.

Coquitlam: Total sales in October were down 2%, to 170 transactions, from September 2023 and new listings dipped 8% month-over-month in an active but balanced Coquitlam market. Prices are firm, with detached benchmarks virtually unchanged in three months at $1,796,500. It is ditto for townhouses, at $1,062,000; and condo apartments, where the $723,300 benchmark was up just 1% from six months ago. Total residential listings are up to 5 month’s supply and the sales-to-listings ratio of 41% compares to 38% in September 2023 and 58% in October 2022. 

Port Moody: With the highest home benchmark price in the TriCities, at $1,139,900 in October, this is a seller’s market with a strong overall sales-to-listing ratio of 60% and just a 3-month supply of listings. Total sales in October, at 51, were up 16% from September 2023 and 16% higher than a year earlier. Supply of new homes will begin to increase in 2024 as two large single-family and multi-family projects start to take shape.

Port Coquitlam: While total transactions dipped down 17% from September to 54 sales in October, this small city remains a seller’s market, with a total sales-to-listing ratio of 47% . With a benchmark price of $954,500 and condo apartments at $631,000, these are the lowest in the TriCities, which keeps Port Coquitlam popular with buyers, who now have more than 200 active listings to choose from.  

Pitt Meadows: With a benchmark home price of $925,800, Pitt Meadows has been an affordable market that has attracted a lot of development in the past three years. However, this will be a challenge soon as the city plans to boost community amenity contributions (CACs) for new housing, as most larger centres already have. The proposed increases, to be decided Nov. 7, 2023, are: single-family houses, from $4,500 to $5,200; Townhouses up $600 to $4,600; and condo apartments up $500 to $3,500 per unit. The CACs are on top of development cost charges from the city and Metro Vancouver. This is a seller’s market, with just 91 active listings and a sales ratio of 44% in both October and September.  There were only 6 condo listings and 20 townhouses listings as of the end of October. 

Maple Ridge: Total sales in October were 110 up from 108 in September 2023 and up from 99 in October 2022. This is now a buyer’s market with a steady 7-month supply of total listings, 747, at month’s end and a sales ratio of 33%. The detached house price index has tracked down 2.1% over the past three months to $1,280,100 and townhouse benchmarks are unchanged since August at $771,300, with condo prices dipping to $531,600, the lowest in Greater Vancouver.

Ladner: Talk about a balanced market: Ladner’s 24 total sales in October were the same as in October 2022 and the sales-to-listing ratio was 50%. Active listings were at 119 at month end compared to 117 at the end of September. The composite benchmark home price is $1,116,200, nearly unchanged (down 1.8%) from three months ago. We have long wondered how Ladner has missed the boat on developing its downtown waterfront, which could be a terrific residential and retail opportunity.

TsawwassenWestern Investor, a popular real estate publication, has named South Delta, primarily Tsawwassen, as one of the top 5 towns for real estate investing in 2024, citing the go-ahead for the giant Roberts Bank port and the new Massey Tunnel project. However, October sales, at just 27, were down 36% from a month earlier and 4% lower than a year ago, so the hype may be premature. This is a buyer’s market right now, with a 7-month supply of listings (188), a sale-to-listing ratio of 36% and the benchmark home price unchanged from a year ago at $1,128,900. It could be the time to get in early. 

Surrey: The average detached house price in Surrey increased 9.5% year-over-year to $1,690,000 in October and shot up 9.8% to just over $2 million in South Surrey-White Rock, and total detached sales increased 12.4% from October 2022 to 145 transactions. Detached sales in the city are outperforming the strata sector, as the lower-priced products are more sensitive to interest rates. “What we’re seeing in the Fraser Valley and indeed across the province is the impact of sustained high interest rates,” said Narinder Bains, chair of the Fraser Valley Real Estate Board. “We anticipate the trend will continue until we start to see some downward movement in the [Bank of Canada] rate.”

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

Read

Sales and Listing Report for Sep 2023

The waiting game in the Metro Vancouver housing market continues but more sellers are joining in and some are becoming impatient. One month a trend does not make. But we certainly saw more listings come on the market in Metro Vancouver in September – more so in the first half. As September moved on through the second half of September, fewer listings came on than in the first half and perhaps this was a cloud burst of new listings and not a constant shower. Much like the rain in September that came in fits and starts, while we have more inventory, it’s still far short of what’s needed.

The wild card is the direction of interest rates and, to an extent, that of the provincial economy. In any case, the pot on the table is getting larger as September saw 5,564 new listings pushed into play, the highest number since May 2023 and nearly 30% higher than in September 2022. Meanwhile, 1,926 properties were sold this September, almost as low as September of 2022, with just 1,701 transactions last year.  Today, with 11,382 active listings in Greater Vancouver and another 6,532 in the Fraser Valley – and the sales-to-listing ratio falling – we believe some sellers will tire of waiting. The question is just how many.

We can expect some asking prices to come down, especially in the detached-house sector. Arguably this has already happened.

Let’s look at the environment through a potential detached house seller’s lens. The unpopular Bank of Canada shouldn’t raise interest rates again at its October sitting. I doubt even the Governor of the BOC knows for sure what to do. Let’s hope they don’t fall for the increase in jobs reported today in Canada and base a rate increase on that number. The B.C. Finance Minister just released an economic outlook that forecasts provincial GDP growth shrinking to 0.4 percent next year. Consumer confidence is fragile.  If the rate does increase, even by a modest 0.25 percent as it did in August, it would further drag down detached house sales that are already lagging. In September, the sales-to-active listing ratio for detached houses in Greater Vancouver fell to 12.6%, signalling a buyer’s market. The benchmark detached house price fell 0.1% from a month earlier and it hasn’t budged in three months.
 
Those eager to sell a detached house may decide to drop their asking price now because the demand for homes benchmarked at more than $2 million will shrink even further. On the bellwether Westside of Vancouver, for example, the average sale price of a detached house was $403,000 lower in September than in January 2023. This doesn’t mean prices fell by that much, but that the composition of sales was such that more homes for less money sold than in January. With the cost of borrowing, lower price points are more attractive.

Some owners have taken measures to hang onto their houses: 33.3% of Canadian mortgage holders now have amortization periods that exceed 30 years, some surpassing 40 years. A handful can’t hang on.

Buyers, therefore, should continue to search through the expanded listings of detached houses and prepare to be aggressive when making offers. There could be some true bargains out there as owners and investors grapple with higher mortgage rates and flatline prices. Right now, in most detached markets, buyers have the advantage. 

For wily investors with deep pockets, the new blanket zoning of Vancouver residential lots for up to six housing units, including strata corporations, could also represent an opportunity. Warning: the city expects to allow only about 150 such applications annually.

However, those hoping that a surge in new home supply, as being pushed by both the province and the federal government, will lead to lower home costs could be disappointed.

In October Metro Vancouver, which represents 21 municipalities, plans to increase development cost charges (DCCs) on new residential construction to pay for water and sewage upgrades. The increases would occur every January over the next three years beginning in 2025. For the City of Vancouver and parts of Burnaby, DCCs on a single-detached home would increase 240 percent from $10,027 to $34,133. Townhomes will also see a significant increase – up 256 percent to $30,861 by 2027. New condo apartment fees will increase 235 percent, to $20,906, during the same period. Depending on the sub-region location, the proposed combined total DCCs rate increases to $24,106 per single-family lot, $22,182 per townhouse unit, and $14,657 per apartment unit. These charges would only apply to market housing, the kind most people want.

Summary of the regional numbers for September 2023

Greater Vancouver: The composite residential benchmark price hit $1,203,300 in September, which was a 0.4% decrease compared to the $1,208,400 in August, which was a decrease from the $1,210,700 benchmark in July. By property type, the benchmark price is now $2,017,100 for single-detached homes, $1,098,400 for townhouses, and $768,500 for condominiums, with all three representing decreases between 0.1% and 0.5% from August. All sectors are seeing sales increases of between 5.3% and 5.8% when compared to September 2022. Total units sold in September were 1,926, down from 2,296 (16%) in August, down 21% from July 2023 and down 35% in June 2023, but up from 13% compared to September 2022, but 18% lower than in pre-pandemic September 2019. Active Listings were at 11,382 at month-end compared to 10,424 at that time last year and 10,082 at the end of August. New Listings in September were up 38% compared to August 2023. The inventory of total residential listings is up to 6 month’s supply (balanced market conditions) and a sales-to-new-listings ratio of 35% compared to 57% in August 2023 and 39% in September 2022. The sales-to-active listings, though is 13%.
 
Vancouver Westside: This is considered the premier housing market in B.C., if not in Canada, but September held some surprises. With 1,155 new listings, the sales ratio is 29%, the lowest level since January 2023, and the number of active listings, at 3,225 at month’s end, was the highest since July of 2021. With just 338 sales in September, the sales ratio to active listings was just 13%, which is in a buyer’s market. The benchmark detached house price in September was $3,553,600, up 1% from a month earlier and 8% higher than a year ago. Townhouses are benchmarked at $1,457,900, down 2.7% from August 2023, while condos are benchmarked at $1,331,600, nearly unchanged for the past two months. This is a buyer’s market in all sectors with a 7-month supply and low absorption. The Westside is prime for purchase with the largest selection in almost two years.
 
Vancouver East Side: Detached house benchmark prices are up 10% from six months ago but have flatlined recently, up just 1% since the second quarter and down 0.8% from August to $1,898,100. More detached houses sold (68) on the East Side in September than in any other market except Richmond (74). With Vancouver’s recent density changes for single-family lots, we expect East Side detached sales to increase. Total home sales in September were 192, down 23% from August and lower than in June and July 2023. Active Listings were at 1,157 at month-end compared to 1,088 at that time last year and 1,013 at the end of August. The supply of total residential listings is up to 6 months and sales to listings ratio of 31% compared to 66% in August 2023 and 40% in September 2022. This is a balanced market leaning towards a buyer’s advantage.
 
North Vancouver: There is some evidence that condo apartment sales are waning but certainly not in North Vancouver, where they represent half of all sales in September. The 84 condo sales followed 85 transactions in August, compared with 57 in September 2022. The benchmark condo price has paused, however, at $811,900, over the past three months. This may reflect a surge in condo listings, with 213 added in September, nearly double that of a month before. The result is the sales-to-listing ratio fell to 39%, down from 74% a month earlier, and opening a buyer opportunity. North Vancouver's total residential property sales in September were 169 up from 160 in August, and up 33% compared to September 2022. Total new listings were up 86% compared to August 2023 and 111% higher than in September 202. Aside from condos, this is considered a seller’s market, with a tight supply continuing in the townhouse and detached house sector.
 
West Vancouver: The provincial government is pushing West Vancouver to bring more than 1,400 new housing units to the market and wants 60% of them to be rentals, half at below-market rents. Patience will be needed. Only 2,885 homes have been built in the exclusive community over the past 10 years and half of these were detached houses that now sell at a median price of $3 million. Condo apartments benchmarked at $1,331,600 in September and the 3 townhouses that sold this month were priced at more than $1.4 million each. Some reprieve for those seeking affordable housing is that West Vancouver is now a buyer’s market with a 12-month supply of total listings (626) and a sales-to-listing ratio at a low 21% in September.
 
Richmond: More detached houses sold – 74 – in Richmond than in any other Greater Vancouver market in September, perhaps partially due to price increases pausing over the past three months at a benchmark of $2,179,100. There was also a greater selection as 179 new listings were added, up from 150 a month earlier. The sales-to-new-listing ratio for detached houses is 41% and it averages 43% for strata units. Though total residential sales in September were the lowest in three months, at 256, Richmond is considered a balanced market with a 5-month supply, and the benchmark price has held steady since the second quarter at $1,184,700.
 
Burnaby East: Total sales reached just 18 transactions in September, the lowest level since May and most benchmark prices have followed suit with detached houses down nearly 6% over the past three months to $1,861600 and condo prices down 0.5% to $796,200. Townhouse benchmarks, though, are up 7% in the same period to $913,900, reflecting the low inventory. Total residential listings are up to 5 month’s supply and sales to listings ratio of 37% compared to 82% in August 2023 and 63% in September 2022 in this balanced market.

Burnaby North: The home of the Amazing Brentwood and related high-rise towers has a strong condo sector, but prices have stabilized recently, with the condo benchmark September price at $746,000, virtually unchanged (- 1%) from three months ago. Detached houses are trading at $2,048,900, down 0.1% from August 2023. Total sales in September were 113, down compared to August and 34% below June of this year. Active listings were 561 at month-end compared to 431 at that time last year and 495 at the end of August, due to an 8% rise in new listings month-over-month in September. This is a balanced, market with a 5-month supply of listings and sales-to-listing ratio of 37%.
 
Burnaby South: The most expensive Burnaby sub-market, the benchmark detached house price in September dipped 2.3% from August to $2,197,100 in September, reflecting an overall 5% sales decline, month-over-month. The benchmark was down 1% from August but remains 6% higher than a year ago. With total sales of 126 in September and active listings reaching 518 after a 31% surge in new listings in September from August, this is seller’s market. There is just 4-months’ worth of inventory and the sales-to-listing ratio is a strong 45%.
 
New Westminster: Total sales have been tracking down since June and settled at 72 in September, still up from 67 transactions in September 2022. Townhouse benchmark prices increased 1.3% from August, to $971,900, with condo apartment prices up 0.4% to $661,900. Detached-house benchmarks dropped 3.1% from August to $1,538,000 but remain up 3.4% from a year ago.

A total of 72 properties sold in September and active listings slipped down slightly to 298 at month end, despite an 11% increase in new listings compared to a month earlier. This remains a seller’s marker with just a 4-month supply of inventory and a sales-to-listing ratio at a healthy 42%.
 
Coquitlam: Coquitlam is becoming one of the better markets in Metro, with September new listings up 49% from August 2023 and sales up 19% from a year earlier, with 170 transactions in September.

The sales-to-listing ratio is running at 38%, but this is considered a seller’s market due to a tight 4-month supply of listings, which totalled 697 at month’s end. The benchmark price has held steady for three months at $1,112,900 and the detached-house benchmark is also stable, up 2.3% from a year ago at $1,789,300 as of September.
 
Port Moody: Port Moody finally has new strata projects underway, welcome because the total inventory of listings in September was 185, down from 187 a year ago, while sales totalled 43 units. New listings increased 30% from August, however, and the sales-to-listing ratio is 43% in this seller’s market. Even with just a 4-month supply of inventory, the benchmark composite home price in September was down about 1% from three months earlier, at $1,125,600, but still the highest in the Tri-Cities market.
 
Port Coquitlam: With a composite benchmark of $958,600, Port Coquitlam is one of the more affordable sub-markets in Metro and prices have been slowly declining over the past three months, as in most areas. Detached house benchmarks were down 2.1% from August at $1,408,000.  Total residential sales in September were down 4% from a month earlier at 65 transactions in this seller’s market.

There is a mere 3-month supply of listings – a total of 191 – and the sales-to-listing ratio of 47% is among the strongest in the region.
 
Pitt Meadows: With just two dozen sales in September, typical for Pitt Meadows, this is still considered a seller’s market because of the lack of listings – just 86 – and a sales success ratio of 45%.

The composite benchmark price is $958,600, down 0.2% over the past three months, but still 4.4% higher than in September 2022.
 
Maple Ridge: With 108 total sales in September, transactions have been tracking down for a year, dropping 10% from August, 24% compared to July and down 5% from September 2022. Prices have held firm, however, with the composite benchmark still 4% higher than a year ago at $999,600 and the detached house benchmark 5% higher on the year at $1,297,200. This is a balanced market leaning towards a buyer’s advantage, with a sales ratio of 31% and a 6-month supply of total listings.
 
Ladner: Total units sold in September were 26, up from 24 in August, the same as July 2023, and up from 20 in September 2022. A quiet market, with the composite benchmark price at $1,178,700, unchanged from August and up 7.8% from a year earlier. The action was in a 91% surge in new listings from August, bringing the total inventory to 117, but still only a 5-month supply in this mostly seller’s market, where the sales-to-listing ratio is running at 40%.
 
Tsawwassen: Plans are afoot to transform the aging Tsawwassen Town Centre Mall into a mixed-use development with hundreds of new strata homes. South Delta in general is on the cusp of growth with the approval of the Roberts Bank superport and work starting next year on the Massey Tunnel replacement. This could by why housing sales in September, at 42, were up 50% from August and 100% higher than in September of 2022, the biggest year-over-year increase in Metro Vancouver.

The benchmark detached house price jumped 3% from August to $1,594,500 and strata prices also edged up. New listings in September were up 37% compared to August 2023 and the sales-to-listings ratio hit 57% compared to 52% in August in this strong seller’s market.
 
Surrey: Detached house sales in Surrey in September were up 36% from a year earlier, but have been declining recently, dropping 3% from August 2023 to 170 transactions, while the benchmark price dipped 0.2% month-over-month to $1,671,900. Townhouse sales also reached 170 in September, but the benchmark price, at $883,500, was up 0.2% from August and 6% higher than a year earlier, based on 139 sales in September, down 27% from a month earlier, the benchmark condo price is $539,500, down 1% from August but 4% higher than year earlier. This reflects what is happening across the Fraser Valley. “With inventory levels continuing on a slow and steady rise, together with slow sales, what we are seeing is a more balanced market,” said Narinder Bains, chair of the Fraser Valley Real Estate Board.

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

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Sales and Listing Report for Aug 2023

Highlights of Aug Dexter Report

  • Bank of Canada holds prime rate at 5% but keeps door open to further hikes

  • Median price of a West Side detached house up $1 million in past year

  • Total new listings have been falling, month-over-month, since May

  • East Vancouver is leading all markets in detached house sales 

  • South Delta detached houses are moving to a buyer’s market 

It is a sad commentary on the Greater Vancouver housing market when buy and sell decisions hinge more on minuscule interest rate moves than on the pragmatic needs of consumers.  But that is what is happening. Two more consecutive Bank of Canada rate hikes in June and July – at 0.25% each – were enough to drive August housing sales down to the lowest level in six months and stall a rally in new listings, which fell 16% from a month earlier.

The Bank of Canada held the prime rate at 5% at its September 6 setting, but any confidence was dashed as the Bank warned that it would not hesitate to jack rates higher if the economy – and the housing market – began to heat up again.

The best advice for buyers is simply to take today’s higher lending rates into the equation and do the best to negate them. It is clear the Bank of Canada is failing, failing to admit it overshot on rate increases over the past year and trying to maintain the illusion it knows what it is doing.

Those considering purchasing a home between now and the next Bank of Canada scheduled rate hike announcement on October 25th should secure a pre-approved 120-day mortgage and talk to a mortgage professional about the best rate and term. 

However, buyers and sellers should not be blinded by interest rate fluctuations. It is likely, considering the economic damage already done, and political pressure, that Bank of Canada rates will not increase again this year. Instead, buyers should concentrate on property values and sellers on matching their price to the market.

Buyers cannot ignore the investment dynamics this year. In the past six months, as both sales and listings fell, prices have continued to increase. The August 2023 benchmark price, at $1,208,400, is $65,000 higher than in March of this year. The benchmark detached house price was up $156,000 to $2,018,500 in the same period and the typical condo apartment price increased by nearly $40,000 while townhouse benchmark prices have risen 5% since March to $1,103,900. But August benchmark prices across Greater Vancouver were down 0.2% from July 2023 and strata prices have barely budged in three months. 

A key reason for a lack of new listings is universally higher prices that have frozen sellers in place and lower rates they currently have on mortgages. A look at the 20 Greater Vancouver markets shows that the August benchmark price varies very little from Bowen Island ($1.41 million) to the Westside of Vancouver ($1.34 million) or from East Burnaby ($1.19 million) to Ladner ($1.17 million). The potential of pocketing a healthy dividend when moving within the region is diminished, persuading many potential sellers to stay put. 

It currently feels like a market waiting for an excuse to buy mixed with a reluctance to sell.

Growing pent up buyer demand may be the best way to explain the status of the market. But without any increase in listings, it makes it difficult for that pent up demand to release. And there’s little to suggest we’ll see any increase in supply. 

Banks are working with homeowners to keep mortgages funded – one option is allowing 30-year amortizations - and many with lower rate mortgages are unwilling to dive into the high interest rate pool and make a move. Expect that when the mortgage climate changes to more favourable buyer conditions, sales levels will increase in a significant way. The number of new listings in August was 6% below the 10-year average and has been falling, month-over-month, since May. This has kept it a seller’s market with only a 4-month supply of listings available – even with the low sales levels. This is going to keep the overall inventory of listings at two thirds the level they should be to get to balance or to favour buyers.

The bottom line is that September, often a bellwether month for sales, could ring in a traditional market rally, especially with no further increase in lending rates. This is the time for buyers and sellers to take advantage of the upturn.

If you are considering a sale, it is better to list now before fall competition increases. For those looking to buy, the current price stability offers a short-time opportunity.

Regional market data for August 2023

Greater Vancouver: There were a total of 2,296 sales in August, down 6% from July and 23% fewer than in June 2023, but up 21% from August of 2022. Active listings were 10,082 at the end of August, compared to 10,099 at that time last year and 10,301 at the end of July. New listings in August were down 16% compared to July 2023, but up 19% compared to August 2022. Despite a rally over the past six months, overall prices have stabilized. The composite home price in August, at $1,208,400, was up just 2.5% from August 2022, though 27.6% higher than in August of 2020. With a tight supply and a sales-to-listing ratio of 57% in August, Greater Vancouver remains in a seller’s market. 

Fraser Valley: The Fraser Valley Real Estate Board recorded 1,273 sales in August 2023, a decrease of 6.9% compared to July. Sales were up 25.2% compared to August 2022. New listings dropped to 2,622 in August, down 8.2% from July, but 28.2% above August 2022. Active listings have been rising since last December and grew again in August by 1.5%, from July, to 6,291, just 7% off the 10-year average. The overall benchmark home price in August was $978,066 and all sector prices were nearly unchanged (down 0.6%) from July 2023 but up slightly from August 2022. The biggest year-over-year price move was condo apartments, up 2.5% from August 2022, to $553,500.

Vancouver Westside: There was a price shocker in this trendsetting market in August. Only 141 detached houses were listed for sale and 69 of them sold for a median price of $4,070,000, almost exactly $1 million more when compared to August 2022. We believe this is an unprecedented one-year median price increase anywhere at any time in Canada. To say detached demand is high is an understatement. Strata action was more muted, with townhouse and condo apartment sales and median prices nearly level with July 2023. Condo medians, at $820,875, were nearly the same as in August 2022.

Total August sales were 433, down 1% from July 2023, and up 18% from August 2022. New listings in August were down 20% compared to July 2023, but up 13% compared to August 2022. The inventory of total residential listings is steady at 5-month supply, creating a balanced market with an August sales-to-listings ratio of 53%. 

Vancouver East Side: More detached houses sold on the East Side in August than in any other market in Greater Vancouver. The 80 detached transactions were also much higher than in August 22, when 57 houses sold. Prices are the key. At a benchmark of $1,913,500, East Vancouver detached prices are $1.6 million less than on the neighbouring Westside and about $100,000 below the Greater Vancouver benchmark. Some of the sales impetus could be from investors trying to assemble East Vancouver detached lots in anticipation of the higher-density zoning expected this fall, which would allow up to six housing units on detached lots. Total August sales reached 250, down from 286 (13%) in July 2023, but up from 196 in August 2022. Active listings were at 1,013 at month end, though new listings in August were down 25% compared to July 2023. This is a seller’s market with a tight supply and a sales-to-listing ratio at 66%, the highest since August 2021.

North Vancouver: The strata market is strong in North Vancouver, with a sales-to-new listing ratio of 74% and sales up sharply from both a month and a year earlier, even as sales of detached houses fell. There were 85 condo apartment sales in August, at a benchmark price of $817,400, up 0.4% from July 2023. There were 38 townhouse sales, at a benchmark of $1,312,100, but this price was down nearly 3% from a month earlier. Detached house prices, benchmarked at $2,268,000, have not budged in three months, but remain 2.4% higher than a year ago. The supply of total residential listings is steady at a tight 3-month supply, confirming this as a seller’s market. 

West Vancouver: August sales were up month-over-month driven by the detached segment – not hearing that very often these days, especially in West Vancouver. It was the highest detached absorption rate since April for the community. Total sales were 57 in August and detached transactions accounted for 34 sales, at a benchmark price of $3,273,900, a price up 10% from six months ago, but still 2.4% below August 2022.

New listings in August were down 20% compared to July 2023 and down 3% compared to August 2022. This is a buyer’s market, with a 10-month supply of listings and a 39% sales-to-listing ratio. 

Richmond: Richmond prices have flatlined over the past three months, though they remain about 4% higher than a year ago, with the benchmark price at $1,187,900.

Listings are down, as are new home starts. As of August 1, only 273 new condos had started, for example, down from 378 at the same time last year, and total listings were down to 1,162 at month’s end, about 200 units lower than a month earlier. We estimate there is only a 4-month supply in this seller’s market, with a sales-to-listing ratio at 64%, up from 54% a month earlier.

Burnaby East: This is a seller’s market but with few sellers and even fewer buyers, with just 31 sales in August from a total inventory of 83 homes for sale. There is only a 3-month supply on the market and the sales ratio is running at 82%, the highest in at least two years. The benchmark home price in August was $1,195,100, down 0.7% from a month earlier, but up nearly 7% from August 2022.

Burnaby North: Total sales in August reached 139, down 13% from July 2023 but up 16% from August of last year. We may see an increase in sales of detached houses right across Burnaby this year as the City prepares to allow laneway homes on detached lots. The laneway houses can be up to 1,500 square feet but they are also restricted to long-term rentals. The benchmark price of a Burnaby North detached house is $2,047,100, up 10% from six months ago but unchanged from July 2023. New listings in August were down 11% compared to July 2023, but up 36% compared to August 2022. Total residential listings reflect a 4-month supply, and the sales-to-listings ratio is 54% in this seller’s market,

Burnaby South: While total sales are up from last year, they have been tracking down for three months, with the 133 transactions in August down 24% since June and 4% below July 2023. Prices dipped 0.3% from July to a composite benchmark of $1,138,100. New listings in August were down 10% compared to July 2023, but up 26% compared to August 2022. Residential listings are steady at 3 month’s supply, but the detached market is flirting with a buyer’s market. The overall sales-to-listings ratio is 62% compared to 59% in July 2023, and 73% in August 2022.   

New Westminster: The Royal City was recently named the most livable city in the Lower Mainland and Number 3 in B.C., but after a surge in July sales, it posted one of the biggest declines in month-over-month sales in August. Total August sales, at 87, were down 27% from July 2023 but up from 77 transactions a year earlier. New listings dropped 16% from July, but total active listings are steady at 299 units. This includes a welcome increase in townhouse listings, which are now at a 5-month supply. Prices are holding firm, with townhomes benchmarked at $959,600, up 3% from a year ago; condo apartments also up 3% at $659,200; and detached houses at $1,587,300, unchanged from July 2023 but 9% higher than a year earlier. New West remains a seller’s market with a sales-to-listing ratio of 56%.

Coquitlam: With the imminent start of the massive Fraser Mills development and other condo projects, Coquitlam will be seeing higher starts by next year, but new supply so far in 2023 has plunged. Only 795 new homes have started, compared to 1,923 in the first seven months of 2022. Meanwhile, new listings in August were down 28% compared to a month earlier and total active listings, at 599, are down from 636 in July 2023. All sector prices are unchanged from July 2023, with the benchmark price up a mere 1.2% from a year earlier. With just a 3-month supply of listings and a sales ratio of 69%, this is a seller’s market despite the flatline prices. 

Port Moody: Another strata/rental project in Port Moody has stalled at the design approval stage in a city that has had challenges getting new projects to market. The latest is a proposed six-storey, 60-unit project on St. John’s with 30 strata condos. New listings in August were down 31% from both July 2023 and August 2022 and there are only 167 active listings, lowest in a year. Still, with recent approvals, 306 new apartments have started so far in 2023, compared to just 5 a year ago, so there is progress on supply. Total sales in August were down 31% from July with 58 transactions. Condo benchmark prices are steady at $729,600 and detached houses at $2,076,500, are down 2.8% from August 2022, one of the few year-over-year declines in detached values. This is a balanced market with a total sales-to-listing ratio at 75%, compared to 43% a year ago and a healthy 6-month supply of detached listings. 

Port Coquitlam: A total of 60 properties sold in August, down 5% from July and off 11% from August 2002. New listings are tracking down and total active listings at the end of August were 169, compared to 172 a month earlier. With a sales-to-listing ratio of 60%, this is a healthy seller’s market and worth a look at by buyers. The benchmark home price was unchanged from July at $971,400, the lowest price in the Tri-Cities.

Pitt Meadows: Aside from Squamish and the Sunshine Coast, Pitt Meadows posted the biggest month-over-month detached house price drop in August, with the benchmark price down 2.8% from July 2023, to $1,317,800. Total units sold in August were 23, down 4% from July 2023 but up 35% from August 2022 so the detached price slide is a bit of a puzzle. The supply of total residential listings is steady at 3 month’s supply, while the sales-to-listings ratio of 60% confirms this as a seller’s market. 

Maple Ridge: Total sales in August were 119, down 17% from July 2023, but up from 113 transactions in August 2022, New listings in August were down 4% compared to July 2023 and up 17% compared to August 2022. The total supply of residential listings is up to 5-month supply (balanced market conditions), with a sales-to-listings ratio of 43% compared to 50% in July 2023. The benchmark price, at $1,005,700 has held steady (up 1.5%) since August of last year.

Ladner: While detached house listings are now at 6-month supply and in a balanced market condition, the strata sector is a different story with a shortage of both townhouses and condo apartments. Total new listings August were down 43% compared to July 2023. Despite the shortfall, prices are stable: the townhouse benchmark in August was $988,000, unchanged from July, while the condo benchmark was up 2%, month-over-month, to $731,900. Detached prices were unchanged from July, at $1,446,000, up 2% from a year ago. This is a seller’s market with a sales-to-listing ratio of 73% and a tight inventory. 

Tsawwassen: Detached houses are now in a buyer’s market with a 9-month supply and August benchmark prices are down 3% from a year ago to $1,547,800. Opportunity awaits detached buyers here. Townhomes are maintaining sales levels while there were more condo sales than new listings in August. There were just 28 sales in all during August, down 15% from July 2023. Active Listings were at 162 at month end compared to 179 at that time last year and 161 at the end of July. With a 6 month supply of total residential listings and sales success ratio of 52%, this is a balanced market.

Surrey: B.C.’s second-biggest city posted mixed results in August, with detached sales and prices flatlining from a month earlier and sales of strata units falling from July 2023. Detached sales reached 175, unchanged from a month earlier, while the benchmark price was down 0.5% month-over-month to $1,675,900. Townhouse sales fell 13%, month-to-month, to 189 transactions and the benchmark price was down 1.3% to $881,600. Condo apartment sales were down 7.6% from July at 207 units and the benchmark price was off 1% to $548,200. 

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

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Sales and Listing Report for July 2023

Highlights of July Dexter Report

  • Home prices are virtually unchanged in the past year.

  • Total sales in Greater Vancouver are up nearly 30% from July 2022

  • Wily buyers take advantage of a summer sales slump

  • There are now 16,400 properties for sale across Metro Vancouver

  • Vancouver density plan invites higher taxes for owners

On July 25 the City of Vancouver recommended a massive rezoning of single-family neighbourhoods to create more of what is known as the “missing middle” housing. The province wants to make such ideological-driven rezoning mandatory in every city in British Columbia with legislation promised to come this fall.

The Vancouver concept would allow four to six homes to be built on most RS-zoned lots, or 60 percent of the city’s buildable land, according to the ‘senior green building planner’ for Vancouver. It also restricts the size of any new detached house. The policy, though, has forgotten the major player in the plan: detached house owners, many of whom want no part of it.

The City of Victoria passed a similar rezoning plan in January of this year. Seven months later not a single application has come forward from a detached house owner willing to turn their private land into a multi-unit rental complex.

Many detached house owners are not willing to risk their financial future and peace of mind by jumping on board a plan that they fear, rightly, will transform their quiet communities and expose them to the federal capital gains tax that could grab up to 50% of their real estate equity for investment properties.

Consider this. The average price of a Vancouver Westside detached house in July was nearly $4.3 million. If sold as a paid-for private residence, the capital gains tax would be zero. But, if the owner divided the house into four rentals and lived in one unit and then sold the property for the same price, the owner would be responsible for capital gains tax as the owner of the income-producing property.

As well, under Vancouver’s missing middle plan, the detached house owner could only produce a “below-market rental unit” or a secure rental unit (which means forever); or pay a “set-rate bonus payment” for the increased density as a market rental. There is no definition of what the bonus payment would be, but currently, in the Cambie area, it averages $135 per square foot for the extra space in a new development.

The house owner would also be subject to the GST on any new construction; would be required to build any new homes under Vancouver’s expensive and confusing “passive house” energy regulations; and would be subject to higher property taxes and utility costs yet would only be allowed to increase rents by 2% per year under provincial regulations. Private detached house owners are somehow, miraculously, expected to deliver what seasoned developers, city planners and other bureaucrats cannot: low-cost rentals in Vancouver.

The City of Vancouver will present its missing middle plan to public hearings in September. Expect a lot of discussion. 

Prices are not skyrocketing. 

There is a lot of media noise being tossed around about “skyrocketing” Greater Vancouver home prices. While true the Benchmark Price is up about 10% from January to July 2023, to $1,210,700, prices are just 0.5% higher compared to a year ago and in a dozen Greater Vancouver communities – including Burnaby North, Coquitlam, Tsawwassen and West Vancouver – composite prices are lower now than in July 2022. On the bellwether Westside of Vancouver, the July benchmark detached house price, at $3,458,000, was up just 1% from a year ago.

The benchmark condo price this July is $771,600, up 2.7% from last year, but condo prices in East Vancouver, Burnaby North and Burnaby East, arguably the most active condo markets in Greater Vancouver, are up less than 1% from July of last year, which should help convince more buyers to take advantage of the summer slowdown to get into the Greater Vancouver market now.

After peaking in May, sales have declined month by month since buyers have now faced two straight increases in the Bank of Canada rate. Greater Vancouver's total sales in July, at 2,455, were down from 2,988 in June to the lowest level since March. In the Fraser Valley, July sales fell nearly 30% from June 2023 and benchmark prices are up an average of 1% from a year ago. But even with the decline in sales transactions, buyers still want to buy, and many sellers are not desperate to sell.

As the summer continues, there will be more opportunities than we’ve seen over the last four months for buyers. With many people away or taking a break from the market, it’s the prime time to be a buyer. Inventories have increased, giving more options, especially in some areas.

The increase in the Bank of Canada rate and fixed rates bumping up over the last month or so have pulled some buyers from the market. Those with 60 to 90-day rate holds are trying to buy before those rate holds expire while others are content to wait out the increases in borrowing costs. With travel and the many local events returning occupying many people’s time, real estate is losing some of the attention it normally would get. Of course, the lack of resale inventory continues to challenge the market and while we wouldn’t expect to see it increase during the summer months, the number of new listings dropped while absorption rates remained close to the levels we’ve seen this year, and in some areas increased. July saw 4,757 new listings after June produced 5,466 new listings after there were 5,776 new listings in May. Year over year, new listings were higher with 4,067 new listings produced last July which is helping would-be buyers in the market.

Don’t expect the higher interest rates to result in more listings. Sales of residential land to developers have fallen 80% in the past year, largely due to rising financing costs, which will stunt delivery of new strata homes into next year, at least. As well, the Financial Consumer Agency of Canada and the Federal Government have issued guidelines for Canadian banks to help homeowners facing significant increases in mortgage costs. Measures such as waiving penalties to break mortgages and increasing amortization periods to lower payments are on the table. 

Banks do not want to own homes, so don’t expect increased rates to lead to a major rise in mortgage foreclosures or distressed sales. 

Instead, serious buyers should be ignoring summer temptations and shopping through the 10,301 active listings now on the market. Buyers can take advantage of a shallow slump and good selection to secure a property now.

Regional numbers for July 2023 

Greater Vancouver: Total transactions reached 2,455 in July 2023, a 28.9% increase from the 1,904 sales recorded in July 2022. This was 15.6% below the 10-year seasonal average and the lowest level in five months. Total inventory at month end, 10,a301 properties, has moved to a 4-month supply, with detached up to 6 months and into balanced market territory. Townhouses and condos are still at a 3-month supply, though price is key for buyers right now. Looking at year-over-year, sales-to-listings ratios are up while condos remained the same. Overall, the 52% absorption in July is showing strength considering the increase in fixed and variable-rate mortgages. The Benchmark Price for all residential properties is currently $1,210,700. This represents a 0.5 per cent increase over July 2022 and a 0.6 per cent increase compared to June 2023.

Fraser Valley: July new listings, at 2,855, were down 16.6% compared to June 2023 but 19.7% higher than July 2022 levels, and virtually on par with the 10-year average. Active listings climbed by 4.3% over June, bringing the total inventory for sale to 6,199 properties. Sales totalled 1,368 in July, a decrease of 29.3% from June 2023, but still 37.8% above July 2022. Benchmark detached and townhouse prices were down about 2% from a year ago, with detached at $1,543,300, townhouses at $850,300 , while condo apartment prices increased 0.8% year-to-year at $555,500.

Vancouver Westside: Total sales in July, at 438, were down 17% from a month earlier and 19% higher than July 2022. Despite a 10% surge in benchmark detached house prices since January, prices are up just 1% from a year ago at $3,458,000. Competition is fierce for anything under $3 million. In Kitsilano earlier this week there were only 8 detached homes listed below $3 million, and just 4 in Point Grey, with multiple offers being seen. Active listings were 2,366 at month end compared to 2,453 at that time last year and 2,249 at the end of June. New listings in July were down 7% compared to June 2023. Condo apartments dominated July sales with 325 transactions, and benchmarked at $866,300, up 4% from a year ago. The supply of total residential listings is up to 5-month supply and sales to listings ratio is 43% in this balanced market.

Vancouver East Side: The East Side story in July included a 12% dip in sales from a month earlier and a 21% decline from May 2023, with 286 transactions. Detached house prices flatlined from June 2023, at $1,897,200, but are up 3.7% from a year ago. Condo prices are just 0.5% higher than in July 2022, at $717,700. Active Listings were at 1,082 at month end compared to 1,191 at that time last year and 1,082 at the end of June. New listings in July were down 18% compared to June 2023. This is a seller’s market with just a 4-month supply and sales-to-listing ratio of 57%. 

North Vancouver: North Van remains a strong seller’s market, especially in the condo sector, which has only a 2-month supply of inventory and a 68% sales-to-listing ratio. The benchmark condo price is $814,400, which has not moved much (up 2%) in a year, despite the robust sales. A total of 185 properties sold in July and sales have tracking down since May. Active listings were at 530 at month end compared to 573 at that time last year and 553 at the end of June; New Listings in July were down 21% compared to June 2023.

West Vancouver: Total sales were 47 in July as the summer siesta affected even the most prestigious market in Metro. This is a buyer’s market with more than 600 active listings and sales ratio in the mid-20% range and a 13-month supply of properties for sale. The Benchmark Price is a north of $2.6 million and the typical detached house sold in July for $3,241,000, down 4.2% from a year earlier.

Richmond: Richmond should be benefitting from Canada’s immigration surge but there is a disconnect in Ottawa: there is a foreign homebuyer ban for two year and no one in charge apparently realized that 500,000 newcomers may need a place to live. There is little relief in sight: when the federal cabinet was shuffled the former immigration minister became the new housing minister. Richmond, the most multi-ethnic enclave in B.C., has seen housing sales drop 26% over the past two months to 294 in July and new listings were down 15% from a month earlier. This remains a seller’s market, though, with just a 3-month supply, a sales ratio of 53% and the Benchmark Price up 2.6% year-over-year to $1,118,300.

Burnaby East: Sales in July, at 47, were lower than even three years ago and new listings dropped sharply 39% from June 2023. Still, with a sales-to-listing ratio of 64% from a limited supply, this qualifies as a seller’s market. Condos are the market maker here, as in most of Burnaby, but the benchmark condo price is frozen, rising just 0.7% over the last 12 months to $803,700 in July.

Burnaby North: Total sales in July were 160, down from 170 in June 2023, but, up from 29% compared to July 2022. Active Listings were at 481 at month-end compared to 475 at that time last year and 440 at the end of June. A seller’s market with a 3-month supply and a sales ratio of 55%, detached houses are the only sector posting year-over-year price gains, with detached prices up 2.4% to just over $2 million. Townhouse prices, by comparison, are down 2.7% year-over-year and condo benchmarks have flatlined at $747,000. The sales ratio is 55% but this more a reflection of supply than demand.

Burnaby South: Total sales wilted 40% over the past two months and July was far from hot with transactions at 139, lower even than in July of 2019 but up 10% from July 2022. The Benchmark Price inched up 1.1% from June 2023 to $1,135,000. There is a tight supply of 457 properties for sale and the sales ratio is running at 59%, the lowest July pace in three years.

New Westminster: The secret is out as buyers have found that the Royal City is one of the best-priced markets in Metro Vancouver. Detached sales, at 119, are up from June 2023 and up 127% year-over-year with a 97% absorption rate. The condo market saw a growth in new listing in July compared to June but, like townhomes, remain in a seller’s market with 2-month supply. The Benchmark Price in New Westminster is $846,400, up 2% from a year ago.

Coquitlam: Sales in July, at 223, were down 16% from a month earlier and 21% from May, but up 57% year-over-year in this seller’s market. The big mover is townhouses, with sales up 157% year-over-year and active listings down from June. The townhouse benchmark is $1,061,900, down nearly 2% from a year ago and it dropped a further 1% in July compared to a month earlier. Detached house prices are holding firm at $1,795,400, as is the overall sales-to-listing ratio of 55%,

Port Moody: Two big residential developments have apparently been approved, including the three-tower Westport Village on the former Andres Wine site, which has been in 18 years in planning. It will supply hundreds of new housing units, eventually, to a market with just a 2-month supply of listings. With total sales of 85 in July, down from one and two months earlier, and a sales ratio of 77%, this is a strong seller’s market. The Benchmark Price is down 6.5% from a year ago at $1,121,500.

Port Coquitlam: Buyers scrambling for more affordability can’t find enough supply in the lowest-priced TriCities market where the Benchmark Price in July was $975,800. Condos are down to a one-month supply. The lack of inventory, just 172 total active listings, has stunted sales, which dropped to 73 in July, the lowest level for that month in at least four years, despite a sales-to-listing-ration of 60%.

Pitt Meadows: The sales-to-listing ratio was 52% in this seller’s market where buyers are chasing too-few listings. With new listings falling, there were only 74 properties on the market at the end of July after 24 sales in the month. Despite a price rally this year, the benchmark detached house price is just 2.4% higher than a year earlier, at $1,355,900. Townhouse prices are down 1.8%, year-over-year, to $836,6000.

Maple Ridge: Total sales have been tracking down since May, but reached 143 transactions in July, up 32% from July 2022. At $739,600, Maple Ridge has the lowest priced townhouses in Metro Vancouver. The benchmark detached house is down 2.4% from a year ago, at $1,307,400. With 622 active listings and a sales success ratio of 50%, this is a seller’s market with stable pricing.

Ladner: There were 22 fresh townhome listings in July compared to just 7 in June 2023, as the benchmark price increased 4.1% from a year earlier to $987,500.
Detached sales suffered from higher lending rates, though as sales dropped to 14 from 23 transactions in June 2023 even as the benchmark price jumped 16% so far this year to $1,50,2000. Prices are still slightly below a year earlier. There are 102 total active listings and a sales ratio of 45% in this seller’s market.

Tsawwassen: Buyers aren’t the problem in Tsawwassen, with an overall sales ratio of 58% and condominium absorption up to 69% from 63% in June. The problem is supply with new listings dropping 9% from June 2023, and just 161 active listings available. The Benchmark Price is down about 2% across the board compared to a year earlier, to $1,222,000, with detached houses at $1,550,600, despite price increase since February. This is considered a balanced market.

Surrey:
Detached house sales fell 34% in July from a year earlier but were up 30% from June in a perplexing rally considering recent interest rate hikes. Detached prices, however, have barely moved, up 1.1% from July 2022 to $1,683,300. Townhouse and condo sales are down double-digits from a year ago, at, respectively, $893,000 and $555,000 in July. The Fraser Valley Real Estate chairman summed up the Valley market well: “Summer is typically a slower period for the real estate sector and the higher interest rates are contributing to the market slowdown,” said Narinder Bains “We’re seeing less traffic as buyers and sellers put a pause on decisions and we expect this trend to continue until the fall cycle.”

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

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Sales and Listing Report for June 2023

Highlights of the Dexter Mid-Year 2023 Report

  • Overall housing sales were 194% higher in June compared to January

  • Composite home benchmark price is up 8% from the start of the year

  • Record high prices are being seen in suburban markets

  • Investors pile in as condo prices are nearing record highs

  • Vancouver’s benchmark home price is now higher than New York City

  • Fraser Valley housing sales are up 51.1% from June 2022

The first six months of 2023 proved a thrill ride for Metro Vancouver home buyers and sellers, who switched reins at least three times and still managed to post a surprising pace of real estate transactions, with June sales up 194% from January 2023.

As sales and prices increased, 5,466 new listings joined the action. There were 9,990 properties for sale as June ended, the highest increase month-over-month since earlier in 2022. It was still not enough to satisfy June demand as nearly 3,000 homes were sold. We are still seeing multiple offers at a pace indicative of a true seller’s market. Despite back-to-back months of higher listings, the low inventory keeps buyers competing in most markets, even detached houses in some areas.

In June, the Bank of Canada threw up another interest rate hike to slow the market, but buyers rode right over it. June’s 2,988 total home sales surpassed June 2022 and both sales and prices blew past projections.

“The market continues to outperform expectations across all segments,” said Andrew Lis, REBGV’s director of economics and data analytics. 

As they say, what a ride.

Condominium buyers, some of them investors, snapped up 1,573 apartments in June to lead the property trifecta: that was more sales than all the detached and townhome sales combined in the month. As Lis noted, “The benchmark price of a condo apartment is almost cresting the peak reached in 2022, while sales of apartments are now above the region’s 10-year seasonal average.”

Data from the Canadian Housing Statistics Program (CHSP) shows that 45.6% of Vancouver condos are owned by investors who hold at least three condo apartments. In some Fraser Valley markets, it is even higher. 

The surprise, though, is not that so many people own multiple condos, but that more don’t. You don’t need to be a statistician to figure out why buyers are drawn to condominiums.  In Greater Vancouver, the benchmark price of a condo apartment increased by $47,000 during the first six months of this year, to $767,000. In Abbotsford, which led the province with multiple owners accounting for nearly 70% of the condo investment market, the average apartment price in June was $16,000 higher than in January 2023.

With the highest rental rates in the country – a one-bedroom condo rents in Metro Vancouver for an average of $2,700 a month and can easily top $3,000 – investors with enough equity can achieve positive cash flow as they watch the condo appreciate. Thanks to new provincial regulations, virtually all condos are now rental allowable units since the province outlawed strata rental restrictions, except for a strata still being able to have an age restriction of 55-plus.  Even in those, an older tenant can still be welcomed.

Condominiums of course remain the most affordable option as first-time buyers deal with higher mortgage rates and a mortgage stress test rate of 5.25%. The detached-house benchmark is now $1,991,300 and is rising by nearly 2% per month. Scarce townhouses sold in June at a benchmark of $1,098,000, up 9% compared to the first of the year.

The Bank of Canada’s nine interest rate hikes were meant to stall housing sales, and they certainly did. In June 2023, the latest rate hike helped drive detached house sales down 19% from a month earlier, but the median price had already increased about $180,000 compared to January.

To add fuel to the inflationary fire, retail spending in B.C. is now running at a near-record high of $8.9 billion a month. 

This all points to another Bank of Canada rate hike on July 12. While inflation hit a low in the recent report in June, today’s jobs number for Canada gives the Bank of Canada fuel to increase their rate. They really shouldn’t, but quite possibly will. Further adding costs to Canadians at a time when it can least be afforded. Can this market withstand a 5% or 5.50% prime rate and a mortgage rate above 7%? We are about to find out as this fast-paced real estate year heads into the second half.

Regional market numbers: 

Greater Vancouver: There was only a three-month supply of total listings on the market in June and a benchmark price of $1,203,000, which was up 8.5% from the start of the year. (As a reality check, the comparable benchmark price in New York City is US$829,000, or $1.12 million Canadian.) Townhomes continue to be the least available home in the market, and that will continue to be that theme for years to come. In the first quarter of this year, only 112 new townhouses started construction.  It is not a priority of city planners and there is no creativity to densify with townhouses, be it a strata or the rare freehold row homes. With the price of land so high in Vancouver, the cost of construction at record levels and municipal development fees increasing, developers are forced to build to the maximum density allowed to reach any relative level of affordability. Active listings flirted with 10,000 during the month but finished at 9,990. June’s overall sales-to-listing ratio was 55%, down from 59% in May but still showed strength considering the bump up in fixed and variable rates.
 
Fraser Valley: June housing sales rocketed past all projections, soaring 51.1% from June 2022 to 1,953 transactions, which was also up 13% from May 2023. But new listings were down 3% from May and off 2.8% from a year earlier." Prices continue to trend upward, with lack of supply and high demand for housing,” noted Narinder Bains, chair of the Fraser Valley Real Estate Board. While prices were down marginally from June 2022, they continue to increase this year. The June detached house benchmark was $1,526,600, up 2.3% from May; townhouse prices increased the same amount to $845,400; and the condo apartment benchmark was up 1.8% month-over-month at $552,200.

Vancouver Westside: Just 75 detached houses sold in June, down from 109 in May but up from 71 in June 2022, while the benchmark price was $3,418,700, 9.9% higher than in January and 2.4% above May 2023, but down 3.2% from June 2022. Townhomes and condos are still in seller’s market conditions. There were only 130 new listings for townhomes in May and 62 of them sold, for a 48% sales success ratio at a benchmark price of $1,497,000, a record price that is 2.7% higher than in June 2022 and nearly $180,000 higher than in January 2023. Condos dominated sales, with 390 transactions, a sales-to-listing ratio of 50% and a benchmark price of $856,000, also a record high, and up nearly 7% from the start of the year.

Vancouver East: The June benchmark price of a detached house in Vancouver East, at $1,879,700 was 31% higher than pre-pandemic 2019 and 9.6% higher than in January 2023. That is an increase of more than $180,000 in six months. The detached sales ratio is running at 43%, signaling a moderate seller’s market. Townhomes are deep into a seller’s market, with a sales-to-listing ratio of 61% and a benchmark price up nearly 8% from six months earlier, at $1,108,900. Good news for buyers is that townhome prices have remained nearly unchanged from three months ago. The June benchmark condo price, however, set a record in June of $856,000, up 1.2% from a year ago and 7% higher than in January 2023. In the first half, 696 condos were sold in Vancouver East, compared to 1,058 in the same period last year. Currently, the sales-to-listing ratio is 58% in this seller’s arena.

North Vancouver: With just a 2-month supply of total listings, and a sales-to-listing ratio of 68%, this is a strong seller’s market. New listings were down in all property types compared to May while the benchmark home price is the second highest in the region, at $1,409,100, a price up 8.6% from six months ago, though still 2% below June 2022. 

West Vancouver: If they can handle the prices, buyers are in control of West Vancouver’s detached-house sector, where the median price in June was $3,418,000, up more than $500,000 from a month earlier, though sales dipped to 28 transactions, down from 41 in May 2023. There is a 15-month supply of houses, with sales at the lowest level in five months. Townhome listings are disappearing: 5 new listings in June and 6 sales. The June benchmark condo price was $1,339,700, a record high, even with a relatively low sales ratio of 37%.

Richmond: With a lack of listings and a sales ratio of 57% across the board, Richmond is a seller’s market that is testing a new record high for prices. The benchmark price in June was $1,185,500, nearly matched with June of 2022 and 9% higher than in January 2023. In June, 95 detached houses sold at a benchmark of $2,182,000, up 10% from six months ago. Condo sales reached 192 units, even a month earlier, but the benchmark price was down 1% ,month-to-month at $739,800.

Burnaby East: A severe shortage of listings combined with a 73% sales-to-listing ratio is driving all prices higher. June detached house sales doubled from May 2023 even as benchmark prices hit a record high of $1,912,200 – and that was still the lowest detached price in Burnaby for the month. Mark this a seller’s market on steroids with the composite home price up 9% from the first of the year, and the strata market averaging an 83% sales success ratio with just a 2-month supply of listings.

Burnaby North: Despite the Amazing Brentwood, Gilmore and Lougheed building booms over the past few years, there is still a shortage of strata homes for sale. Townhomes, for instance, are seeing a 93% sales-to-listing ratio and June benchmark townhouse price was $903,500, up 6.7% from January 2023. Condo apartments sold at a benchmark of $753,800, the highest price on record. Still strata prices are far below detached houses, which reached $2,039,400 in June, up 2.9% from a month earlier. 

Burnaby South: This is also a seller’s market, with just a 3-month supply of listings based on current sales level. The overall sales-to-listing ratio is a robust 61%, led by condos, where 70% of new listings sold in June at a benchmark price of $812,100. A crack in the seller’s advantage is the detached house sector, with a more modest 39% sales success ratio, but the detached benchmark is $2,213,200, up 9.5% so far this year.

New Westminster: Multiple bids are now common in New Westminster, with both detached and townhomes selling for more than the list price. Not a surprise with just a 2-month supply of total listings and a total of only 40 new non-rental housing starts so far this year in the entire municipality. The benchmark townhome price in June was $945,100, up 7.2% from January 2023, while condos are selling at a record benchmark of $653,400. Detached houses were also at a record high in June of $1,570,600, up 11.6% (yes, more than $158,000) from benchmark at the start of 2023.

Coquitlam: One must wonder if supply is the answer to affordability when one looks at Coquitlam, which has been characterized by construction cranes for years. There was only a 2-month supply of strata homes on the June market and prices skyrocketed. The condo benchmark is now at an all-time high of $737,500 and is rising by 1.3% per month this year, with a sales ratio of 70%. The overall sales-to-listing ratio is 61%, which is eating into the tight supply. Detached-house benchmarks hit a record high of $1,787,000 in June and there is just a 3-month supply of houses listed. 

Port Moody: 100% of the condos listed for sale sold in June, to give an idea of the tight supply in a market blessed with SkyTrain service but cursed with a low housing starts for years. Big new strata projects are in play but still two years away from completion. June total sales were higher than in June 2021, which was the former market peak. Townhomes are selling at just over $1 million, and the benchmark condo apartment price is $728,000, 7.2% higher than in January. June saw 21 detached houses sell at a benchmark of $2,035,000, up 1.4% from May 2023 but 7% below June 2022. 

Port Coquitlam: There is a 2-month supply overall with a 65% absorption rate, but only a 1-month supply of townhomes and condos with sales ratios of 78% and 73%, respectively. The June benchmark home price, at $967,900 is up 9.2% from the first of the year, and down just 1.3% from June 2022. This is a tight seller’s market.

Pitt Meadows: This market was very popular during the COVID period and has come back into fashion this year. In June, the detached sales-to-listing ratio was 100% and the benchmark price for a detached house has soared 13.8% so far this year – the highest increase in Metro Vancouver – to $1,319,000. There were only 12 active townhouse listings and 14 condo active listings at month end.

Maple Ridge: With the composite home price rising 9.4% since January to reach $997,900, the overall market has just a 3-month supply with strata listings down to only a 2-month inventory. New listings are taking up a sales ratio of 56% in this seller’s market.

Ladner: Ladner saw the first price drop in the townhome benchmark price when it dipped a mere 0.2% from May to June’s $971,700, a price up 13.5% from January to mark the highest six-month townhouse price rise in the Metro region. There were just 11 active townhome listings at the end of June, and just 7 total condo listings. Meanwhile, the detached house benchmark was $1,422,900, up 10% from January and 14.2% higher than at the end of the first quarter. This is a seller’s market with price momentum and a sales-to-listing ratio of 62%.

Tsawwassen: This is a more balanced market in the detached-house sector, with about a 5-month supply of listings. The benchmark detached price in June was $1,596,700, up 10.8% since January at sales-to-listing ratio of 62%. Townhouse benchmarks are at $999,600, up 10.3% compared to January, and the condo benchmark in June was $690,700, 7% higher than when this year started. Strata listings are at a 3-month supply, based on current sales.

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

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Summary of Government Regulations & Dates
Government Regulations & Dates City of Vancouver Empty Homes Tax:
  • The City of Vancouver Empty Homes Tax is 3% for any homes deemed empty in 2023.

  • Declaration Due Date is February 2.

  • All homeowners must complete a declaration and confirm exemptions, if applicable.

  • Clauses required in CPS to protect the buyer.

  • More information: City of Vancouver Empty Homes Tax

B.C. Speculation and Vacancy Tax:
  • The BC Speculation and Vacancy Tax is 0.5% for Canadian Citizens or Permanent Residents and 2% for foreign owners and satellite families.

  • Declaration Due Date is March 31.

  • All owners on title must complete a declaration, even if they are spouses.

  • Areas covered include the Capital Regional District (Victoria and surrounding areas), Metro Vancouver Regional District (including Lions Bay and Squamish), Langley, Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo, and Lantzville (use the link to confirm areas).

  • No clauses needed in CPS to protect the buyer.

  • More information: B.C. Speculation and Vacancy Tax

Canadian Underused Housing Tax:
  • Starting in 2023 for the 2022 tax year, there is an annual 1% tax on the taxable value of a vacant or underused residential property that is directly or indirectly owned by a non-resident non-Canadian.

  • CRA filing is required by April 30th.

  • Excluded Owners (Canadian Citizens and permanent residents of Canada) do not have to file, but some exceptions may trigger a requirement to file.

  • This tax applies to all of Canada.

  • No clauses needed in CPS to protect the buyer.

  • More information: Canadian Underused Housing Tax

B.C. 3-Day Home Buyer Rescission Period:
  • Effective January 3, 2023.

  • Affects residential properties other than leasehold, auction, court order, presale.

  • Provides a buyer with a 3-day rescission period starting the day after acceptance, excluding Saturdays, Sundays, and holidays.

  • If a buyer rescinds, they are required to pay the seller a 0.25% penalty, which can be paid from any deposits held in the brokerage trust account or pursued by the seller if no deposits were given.

  • The rescission period cannot be waived.

  • The Contract of Purchase and Sale must contain the exact rescission amount based on the purchase price, the contact for sending rescission notice, the final acceptance date, and the last date rescission can happen.

  • Rescission can be done using the required form by registered mail, fax, or email with a read receipt.

  • More information: B.C. 3-Day Home Buyer Rescission Period

B.C. Foreign Buyer Tax:
  • The tax is 20% for foreign nationals, foreign corporations, or taxable trustees.

  • Applies to the Capital Regional District (Victoria, Saanich, and surrounding areas, Gulf Islands), Fraser Valley Regional District (through to Hope), Metro Vancouver (to Lions Bay), Central Okanagan, and District of Nanaimo.

  • Contact the provincial government for clarification at 1-888-841-0090 or attenq@gov.bc.ca

Canada 2-Year Foreign Buyer Ban:
  • Starting January 1, 2023, non-Canadian citizens and non-permanent residents are prohibited from purchasing residential property in Canada for two years, whether directly or indirectly (meaning buyers not on the contract but acting as a beneficial owner are also prohibited).

  • Agreements signed before January 1, 2023, are not subject to the prohibition.

  • The ban applies to properties in either a "census agglomeration" or a "census metropolitan area," with certain exemptions such as Whistler. You can refer to the following link for more information: link

  • The prohibition applies to residential properties and buildings with up to three dwelling units (multi-family rental buildings). Vacant land is exempt as of March 27, 2023.

  • The ban applies to individuals and corporations with a non-Canadian ownership interest of 3% or more.

  • Some exemptions may apply, and it is advisable to consult the legislation and seek legal advice to determine if they are applicable.

  • Violation of the Act can result in a $10,000 penalty for all parties involved, including the buyer, seller, lawyer/notary, real estate agent and brokerages, lenders, etc. Additionally, a court order may be issued to sell the property, with any profit going to the government.

  • A property may be exempt from the Foreign Buyer Ban but could still be subject to the Foreign Buyer Tax.

  • Buyers should sign the Certificate and Consent of Purchaser form to confirm their eligibility to purchase.

  • The Canada Mortgage and Housing Corporation (CMHC) provides comprehensive information on the ban, including a feature to look up an address and determine if it is exempt. You can find more information at the following link: link

Anti-Flipping Rule:
  • The anti-flipping rule is applicable nationwide and is based on Canada Revenue Agency (CRA) filing requirements.

  • Any individual who sells a property within a period of less than 12 months would be considered to be flipping the property and subject to full taxation on their profits as business income.

  • Some exemptions exist, and it is advisable to seek advice from an accountant to understand the specific details and implications.

  • Assignments are currently exempt – that could change.

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