Higher borrowing costs have begun to permeate the Metro Vancouver housing market in predictable ways, but a predicted major slowdown hasn’t occurred.
That’s according to the Real Estate Board of Greater Vancouver (REBGV) in its market report for last month, noting that price gains and sales have also cooled along the typical summer seasonal pattern.
“It’s been an interesting spring and summer market, to say the least” said Andrew Lis, REBGV’s Director of Economics and Data Analytics, in a news release this week.
“Borrowing costs are fluctuating around the highest levels we’ve seen in over ten years, yet Metro Vancouver’s housing market bucked many pundits’ predictions of a major slowdown, instead posting relatively strong sales numbers and year-to-date price gains north of eight per cent, regardless of home type,” said Lis.
According to the REBGV, detached, attached and apartment properties newly listed for sale on the Multiple Listing Service (MLS) in Metro Vancouver in August 2023 saw an 18.1 per cent increase compared to August 2022. However, it was 5.3 per cent below the 10-year seasonal average.
The total number of homes listed for sale on the MLS system saw a 0.2 per cent decrease compared to August 2022, but home sales were up 21.4 per cent.
“It’s a bit of a tortoise and hare story this year, with sales starting the year slowly while prices increased due to low inventory levels,” Lis said. “As fall approaches, sales have caught up with the price gains, but both metrics are now slowing to a pace that is more in-line with historical seasonal patterns, and with what one might expect given that borrowing costs are where they are.”
The REBGV notes that the benchmark price for a detached single-family house in Ladner this August was $1,446,000, almost unchanged from the previous month, while up two percent from August 2022. Over the previous six months, the benchmark price rose 16.9 per cent, the highest in the REBGV’s region.
The benchmark price for a detached single-family house in Tsawwassen last month was $1,574,800, also almost unchanged from the previous month, while down 3.1 per cent compared to August 2022.
The benchmark price for a Tsawwassen house, though, still managed to increase 15.9 per cent over the past six months, making it the second highest in the region after Ladner.
The benchmark price this August for a townhouse in Ladner and Tsawwassen was $988,000 and $1,004,800 respectively. The benchmark price for a condo in Ladner and Tsawwassen was $731,900 and $702,300 respectively.
Ladner and Tsawwassen townhomes and condos all saw year-to-year increases from August 2022.
Meanwhile, the Fraser Valley Real Estate Board (FVRB) says a combination of seasonal trends and cautious anticipation of the next rate announcement saw the Fraser Valley real estate market slow in August as sales fell slightly for the second month, after reaching a 15-month high this June.
According to the FVRB, the benchmark price for a detached single-family house in North Delta last month was $1,407,700, down 1.5 per cent from this July, while up 4.7 per cent from August 2022.
The benchmark price for a North Delta townhouse and condo this August was $962,300 and $611,500 respectively, also both up from August 2022.
