August 3, 2023 METRO VANCOUVER MARKET REMAINS FIRM WITH CONTINUING PRICE APPRECIATION AMIDST SUMMER SLOWDOWN

In July, the Metro Vancouver market remained firm, seeing typical seasonal declines in activity but recording continued price appreciation across all product forms. In particular, the condominium and townhome markets remain constrained and decidedly within seller’s market territory. 

HOUSING INVENTORY SURGE CONTINUES TO DRIVE UP HOME PRICES IN GREATER VANCOUVER 

Home prices in Greater Vancouver continued to rise in July 2023, driven by strong sales figures and low housing inventory. The Real Estate Board of Greater Vancouver (REBGV) reported 2,455 resales in July, a 28.9% increase from July of the previous year but still 15.6% below the 10-year monthly average.  

There was a total of 10,301 active listings at the end of July – 4.0% below July 2022 and 14.4% below the 10-year July average. Supply-demand conditions continue to play an outsized role in supporting real estate values – supplanting the downward pressure from higher interest rates.  

The benchmark prices for all residential product types showed slight increases in both year-over-year and month-over-month figures, reflecting the continued demand that has persisted into the summer. For reference, the sales-to-active listings ratio was 24.9% this past month, continuing the seller’s market experience since the beginning of the year. This is particularly true for townhomes and apartments, which had sales-to-listings ratios of 32.0% and 30.6%, respectively.  

In summary, Greater Vancouver showed modest growth in key areas, with upward pressure on home prices, particularly in detached homes and condominiums, indicating a steady market trend.  

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PRICE APPRECIATION CONTINUES IN FRASER VALLEY REAL ESTATE MARKET DESPITE SEASONAL SLOWDOWN

Following five months of consecutively increasing activity, the Fraser Valley resale market cooled in July, in line with typical seasonal swings in the summer months. Despite this, the region recorded price appreciation across all product types, extending the winning streak that began in January of this year. 

Overall, July saw 1,368 resales, marking a 29.3% drop in activity from the previous month. Even with this reduced activity, July 2023 sales activity was 37.8% stronger than the same month one year ago. Activity at these levels is just 15.0% below the 10-year average for July, indicating that we are closer to normalcy on the demand side, despite tight supply conditions. 

On the supply side, the FVREB received 2,855 new listings in July. Similar to sales activity, this reflected a drop (-16.6%) from the previous month but an increase (+19.7%) from July 2022.  

As interest rates have remained elevated, their effects have impacted different product types with varying degrees of severity. This has produced pronounced differences in the sales-to-listings ratio across product forms. As of July, the detached market is considered balanced with a ratio of 17%, while townhomes and apartments remain firmly in seller’s market territory with ratios of 45% and 36%, respectively.  

The above dynamics have supported month-over-month price appreciation of 1.1%, 0.6%, and 0.8% for detached, townhomes, and apartments, respectively.  

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VICTORIA'S REAL ESTATE MARKET SEES A BALANCED MARKET SHIFT AMIDST A SUMMER SEASON DECLINE 

Following typical seasonal trends observed in markets in the Lower Mainland, the VREB has seen a decline in resale activity, reflecting the market’s transition into the summer market.  

In July, there were 595 resales, a 16.7% increase from July 2022 but 15.6% fewer than the previous month. This is in parallel with positive gains in supply, suggesting a move towards more balanced market conditions as the season changes. Meanwhile, benchmark prices for properties are showing signs of recovery, yet they remain below where they were last year. Specifically, benchmark prices for condominiums in July stood at $578,000, a modest 0.7% increase month-over-month but a 3.7% decrease year-over-year, demonstrating the nuanced dynamics of the current market. 

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