Market Update Archives - Page 19 of 43 - Geoff Jarman Real Estate

APRIL 2023 METRO VANCOUVER HOUSING MARKET HIGHLIGHTS

Homebuyer Confidence Spurs Price Growth in Metro Vancouver Real Estate Market

Source: REBGV

With listing activity remaining below historical norms, home sales in Metro Vancouver¹ have mounted a surprising comeback, rising near levels seen last spring, before eight consecutive interest rate hikes eroded borrowing power and brought home sales activity down along with it.

April 2023 Metro Vancouver housing market. Source: REBGV — April 2023 Metro Vancouver housing market update. Source: REBGV

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,741² in April 2023, a 16.5 per cent decrease from the 3,281 sales recorded in April 2022, and 15.6 per cent below the 10-year seasonal average (3,249).

“The fact we are seeing prices rising and sales rebounding this spring tells us home buyers are returning with confidence after a challenging year for our market, with mortgage rates roughly doubling. The latest MLS HPI® data show home prices have increased about five per cent year-to-date, which already outpaces our forecast of one to two per cent by year-end. The year is far from over, however, and it remains to be seen if these price increases will be sustained into 2024.”
Andrew Lis, REBGV director of economics and data analytics

There were 4,307 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2023. This represents a 29.7 per cent decrease compared to the 6,128 homes listed in April 2022, and was 22 per cent below the 10-year seasonal average (5,525).

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,790, a 4.2 per cent decrease compared to April 2022 (9,176), and 20.9 per cent below the 10-year seasonal average (11,117).

April 2023 market update — Picture source: REBGV

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

“When we released our market forecast in January, we were one of the only organizations taking the contrarian view that prices were likely to appreciate in 2023,” Lis said.

“And what we’re seeing unfold so far this year is consistent with our prediction that near record-low inventory levels would create competitive conditions where almost any resurgence in demand would translate to price escalation, despite the elevated borrowing cost environment. At the crux of it, the issue remains a matter of far too little resale supply available relative to the pool of active buyers in our market.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,170,700. This represents a 7.4 per cent decrease over April 2022 and a 2.3 per cent increase compared to March 2023.

Sales of detached homes in April 2023 reached 808, a 16.3 per cent decrease from the 965 detached sales recorded in April 2022. The benchmark price for detached properties is $1,915,800. This represents an 8.8 per cent decrease from April 2022 and a 2.9 per cent increase compared to March 2023. Attached home sales in April 2023 totalled 500, a 13.5 per cent decrease compared to the 578 sales in April 2022. The benchmark price of an attached unit is $1,078,400. This represents a 6.1 per cent decrease from April 2022 and a 2.1 per cent increase compared to March 2023.

Sales of apartment homes reached 1,413 in April 2023, a 16.5 per cent decrease compared to the 1,693 sales in April 2022. The benchmark price of an apartment property is $752,300. This represents a 3.1 per cent decrease from April 2022 and a two per cent increase compared to March 2023.

* Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.

CLICK HERE – Full REBGV April 2023 Market Update

Vancouver BC – May 2, 2023

Have a look at the REBGV April 2023 Market Update Insights!

DOWNLOAD the REBGV April 2023 Market Update CLICK HERE
See the Monthly Market Stats CLICK HERE
For more market information from the Real Estate Board of Greater Vancouver CLICK HERE
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April 12, 2023: Bank of Canada Keeps Policy Rate Unchanged and Continues Quantitative Tightening Measures

The Bank of Canada has announced its decision to hold the target for the overnight rate at 4.5%, while keeping the Bank Rate and deposit rate at 4.75% and 4.5%, respectively.

Sources: Bank of Canada, Trading Economics

The Bank will also continue its policy of quantitative tightening.

While inflation in many countries is declining due to lower energy prices, tighter monetary policy, and normalized global supply chains, measures of core inflation in advanced economies suggest persistent price pressures, especially for services. Global economic growth has been stronger than anticipated, with growth in the United States and Europe surprising on the upside. However, the Bank expects the growth to weaken due to tighter monetary policy.

In Canada, the demand still exceeds supply, and the labor market remains tight. Economic growth in the first quarter looks to be stronger than expected, with a bounce in exports and solid consumption growth. However, the Bank expects consumption to moderate as more households renew their mortgages at higher rates, and restrictive monetary policy works its way through the economy. Overall, GDP growth is projected to be weak through the remainder of this year before strengthening gradually next year.

CPI inflation eased to 5.2% in February, and the Bank expects CPI inflation to fall quickly to around 3% in the middle of this year and then decline more gradually to the 2% target by the end of 2024. However, Governing Council remains prepared to raise the policy rate further if needed to return inflation to the 2% target.

Governing Council’s focus is on the evolution of core inflation, inflation expectations, and corporate pricing behavior to gauge the progress of CPI inflation back to target. In light of its outlook for growth and inflation, Governing Council has decided to maintain the policy rate at 4.5% and continue with quantitative tightening.

For more information on the Bank of Canada’s outlook for the economy and inflation, including risks to the projection, refer to the Monetary Policy Report (MPR) scheduled to be published on July 12, 2023.

The Bank of Canada held the target for its overnight rate unchanged — Picture source: Trading Economics

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Tags: Bank of Canada, quantitative tightening, global economic developments, inflation, economic growth, monetary policy, labor market, employment growth, unemployment rate, wages, productivity, CPI inflation, Governing Council, interest rate increases, price stability, economic outlook, inflation risks.