The Vancouver housing market has been surprising everyone with an unexpected surge in home prices, despite below-average sales and new listing activity. In just one month, home prices in Vancouver have risen by an average of 1.8 per cent. This comes as a shock since the market's new listings have remained below historical averages, and borrowing costs have increased. However, this trend is likely to continue, and there are several reasons why.
Firstly, the resilience of the housing market in Vancouver is truly impressive. Even though residential home sales in March 2023 were a decrease of 42.5 per cent from the previous year and 28.4 per cent below the ten-year seasonal average, the sales have remained strong. This demonstrates that there is a lot of demand for homes in Vancouver, despite the current market conditions.
Secondly, the hottest markets in Vancouver are North Vancouver, Richmond, and Whistler, with prices up 4 per cent, 5.1 per cent, and 5 per cent, respectively. This indicates that there is a lot of activity in these areas, and people are willing to pay a premium to buy homes there. Additionally, even the condo market has seen its ups and downs, with the Sunshine Coast recording a 6.9 per cent increase in prices, while Richmond witnessed a 1.3 per cent decrease.
Thirdly, the sales-to-active listings ratio remains at 30.7 per cent, which means that there are more buyers than there are properties available. With only 4,317 detached, attached, and apartment properties newly listed for sale in March 2023, representing a 35.5 per cent decline compared to the previous year, and 22.3 per cent below the ten-year seasonal average of 5,553, the housing supply remains low.
Currently, the total number of homes listed for sale on the MLS system in Metro Vancouver is 8,617, an 8.1 per cent increase compared to March 2022, but 17.3 per cent below the ten-year seasonal average of 10,421. This indicates that there is a shortage of homes in the market, and this scarcity is driving up prices.
Fourthly, the Vancouver Board has reported that the spring market is already on track to outpace their modest 2023 forecast of a one to two-per cent price increase across all property types. This means that the market is performing better than expected, and this is a positive sign for anyone who is looking to sell their property.
Based on these factors, Jova Xu of Jovi Realty said it seems clear that sale prices are going to continue going up in Vancouver.
While property sellers may be awaiting more favourable market conditions, it seems that those conditions have arrived in Vancouver. If you are thinking of selling your home in Vancouver, now is the perfect time.
The market needs more supply, and the demand is high, making it a seller's market. With the sales of detached, apartment, and attached homes experiencing a significant decrease compared to March 2022, and the benchmark price for each category varies, it is an opportune time to sell your property.
In conclusion, the Vancouver housing market has seen an unexpected surge in home prices, despite below-average sales and new listing activity. This trend is likely to continue as there is a lot of demand for homes in Vancouver, especially in the hottest markets such as North Vancouver, Richmond, and Whistler.
With a shortage of homes in the market and the spring market outpacing forecasts, the sale prices are going to continue going up in Vancouver. Therefore, if you are thinking of selling your home in Vancouver, now is a perfect time to do so.
Alistair Vigier is the CEO of ClearwayLaw.com, an online legal marketplace that allows the public to leave ratings for every lawyer in Canada.