The Vancouver housing market has always been a topic of interest and debate, known for its stunning scenery and high real estate prices. In this comprehensive update, we’ll delve into the recent trends, figures, and key factors shaping the Greater Vancouver housing market as of August 2023. From average home prices to regional breakdowns and future predictions, we’ll cover it all.
Vancouver Housing Market Report 2023: Insights and Trends
The Vancouver housing market is experiencing shifts, with new listings impacting the dynamics and leaning towards a buyers’ market. WOWA Trusted and Transparent Market Report Summary for September 2023.
Key Market Metrics
- Average home price in Greater Vancouver: $1,297,738
- Yearly increase in average home price: 5.3%
- Monthly increase in average home price: 1.1%
- Benchmark price of homes in Metro Vancouver: $1,203,300
- Benchmark price increase over three years: 25%
Price Trends by Housing Type
- Detached home average price: $2.17M (3.1% YoY increase)
- Attached home average price: $1.23M (10.5% YoY increase)
- Condo apartment average price: $816k (8.8% YoY increase)
Market Status and Sales
Market Status: Buyer’s Market
This Month’s SNLR: 35% (An SNLR of 40% or less signals conditions that favour buyers.)
In September 2023, 1,926 Vancouver houses were sold. These sales include 572 detached homes, 988 apartments, and 352 attached homes.
Housing Market Overview
Looking at Metro Vancouver’s housing market, there were 11,382 active listings at the end of September 2023, up 9.2% compared to last year. The number of new listings this month is a 28% increase year-over-year. The sales-to-active listings ratio (SNLR) was 35% for September 2023, indicating a buyers’ market.
Factors Influencing the Market
Over the past three years, interest rate expectations have been the main driver of the Canadian housing market. Inflation has stabilized at around 4.1% annually, influencing mortgage rate forecasts for the coming years.
Regulation and Strata Insurance
Condo owners in Vancouver and B.C. have recently faced significant increases in their strata insurance rates. Recent regulatory amendments aim to protect strata unit owners and ensure transparency in insurance coverage.
Metro Vancouver Housing Market Forecast for 2023
The Metro Vancouver housing market witnessed a shift as it entered the fall season of 2023. The month-over-month price gains seen earlier in the year began to relent due to a seasonal decline in sales and a modest increase in inventory levels across the region.
In September 2023, 1,926 residential homes were sold, marking a 13.2% increase from the 1,701 sales recorded in September 2022. However, this was still 26.3% below the 10-year seasonal average of 2,614 sales, indicating a market that’s adjusting.
Andrew Lis, REBGV Director of Economics and Data Analytics, noted, “A key dynamic we’ve been watching this year has been the reluctance of some homeowners to list their homes given that mortgage rates are the highest they’ve been in over ten years. With fewer listings coming to the market earlier this year than usual, inventory levels remained very low, which led prices to increase throughout the spring and summer months.”
Market Dynamics: Inventory and Listings
In September 2023, there were 5,446 detached, attached, and apartment properties newly listed for sale on the MLS® in Metro Vancouver. This represented a notable 28.4% increase compared to the 4,243 homes listed in September 2022, potentially indicating a renewed interest among sellers to participate in the market.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver increased to 11,382, a 9.2% rise compared to September 2022, reflecting a more balanced market compared to earlier in the year.
Sales-to-Active Listings Ratio and Price Trends
The sales-to-active listings ratio for September 2023 across all property types was 17.7%. This ratio provides insights into market dynamics, with ratios below 12% indicating downward pressure on prices, and ratios surpassing 20% indicating upward pressure. This suggests more balanced market conditions in Metro Vancouver.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,203,300. This represents a 4.4% increase over September 2022 and a marginal 0.4% decrease compared to August 2023.
Property Type Analysis
In September 2023, sales of detached homes reached 572, a 7.5% increase from the previous year. The benchmark price for a detached home was $2,017,100, indicating a 5.8% increase from September 2022.
For apartment homes, there were 988 sales in September 2023, marking an 11.3% increase compared to the previous year. The benchmark price for an apartment home was $768,500, reflecting a 5.8% increase from September 2022.
In the case of attached homes, sales totalled 352 in September 2023, representing a significant 28.5% increase compared to the previous year. The benchmark price for an attached home was $1,098,400, indicating a 5.3% increase from September 2022.
With these insights and the observed market shifts, the Metro Vancouver housing market in 2023 is expected to display more balanced conditions, with sellers showing renewed interest and inventory levels recovering modestly. The dynamics of the market will continue to be influenced by factors such as mortgage rates and seasonal patterns.
Sources:
- https://wowa.ca/vancouver-housing-market
- https://www.rebgv.org/market-watch/monthly-market-report/september-2023.html