Westside detached home sales and listing activity in March continues to trend below the long term averages.
Compared to the 10 year average, the westside supply was down 19% for detached homes, up 7% for apartments and up 4% for townhomes.
Compared to the 10 year average, the westside demand was down 26% for detached homes, 29% for apartments and 37% for townhomes.
Median home prices in March are down 9.6% for detached homes (from the peak Oct.2017), 5.1% for apartments (peak Jan.2018) and 13.8% (peak Feb.2022) for attached homes.
The Real Estate Board of Greater Vancouver (REBGV) says that residential property sales in the region decreased 42.5% to 2,535 in March from 4405 sales in March 2022. This is down 28.4% from the 10 year March sales average.
The Real Estate Board of Greater Vancouver (REBGV) reported that the benchmark price for all residential properties in Metro Vancouver is $1,143,900 which is a 9.5% decrease from March 2022, and a 1.8% increase from last month.
The total number of properties currently offered for sale on the MLS system in Metro Vancouver is 8617, up 8.1% compared to 7970 in March 2022 but that is still 17.3% below the 10 year seasonal average of 10,421 listings.
Prices this spring are already on track to out perform out 2023 forecast, which anticipated modest price increases of 1 - 2 % across all product types, said Andrew Lis, REBGV’s director of economics and data analytics. The surprise is that the price increases are occurring in the face of elevated borrowing costs, below average sales and slow listing activity that suggests sellers are waiting for more favourable market conditions.
Aggressive sellers, pricing sharply, are now getting lots of attention and offers over asking prices in some cases. Too many sellers are still over optimistic regarding market price and those listings languish because the buyers are fewer and further between
Notwithstanding the short supply and reduced demand, rates will still play a part in the pace of market activity and it is now more expensive and more difficult to get a mortgage both factors inclined to slow the market down.
Rates only started to increase in April 2022 and we are just now seeing a full year of their effect on the market. As those mortgage renewals come up and new borrowers have to qualify at the new higher rates, we will see how that effects our market and prices.
The consensus among many economists and forecasters is that the Bank of Canada is at or near the peak of interest rate increases which inclines many sellers to hold on until demand built on factors like population growth can start to push up prices again.
March was the month of peak activity in 2022 @ 122 sales and we are 24% below that @ 93 sales for March 2023 so I am hoping we will do better in April.🤞
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