The Metro Vancouver real estate sales in February were 33% below the 10-year February average. Remember January’s sales were 42.9% below the 10-year average. So while the sales remain low, the activity is picking up relatively speaking. This is reflected in the stronger sales-to-active listings ratios and the corresponding month-over-month price increases in all three categories. Sales-to-active listings ratios are 16.8% for detached homes, 30.1% for townhomes and 25.8% for apartments. From the chart below you can see that it is a significant reversal from the recent trend. Townhomes had the biggest reversal in the sales-to-active listings ratio and translated into the biggest month-over-month price increase: 1.8%. This is followed by apartments at 1.6% and 0.7% for detached. New listings are 36.6% below last February’s, but the total number of homes listed has increased 16.7% from last February due to the low sales number.
While most institutions forecast a real estate price decrease in 2023, real estate is very location specific. And also, price point specific. So for buyers in the Metro Vancouver area the forecast for Canada from the Canadian Real Estate Association is basically irrelevant. The BC numbers are better but nothing beats talking to a realtor about the area you are interested in and the price point you are interested in. This newsletter can only provide a general trend in Metro Vancouver. The price trends for mid-priced condos in New West can be very different from detached houses in West Van.
Inflation numbers seem to be better in Canada, then the states. So far it looks like our numbers are headed in the right direction, which means it is possible that the rate hikes are behind us. And the only concern now is when the rate cuts will be coming. However, the opposite seems to be true in the states. Now there is uncertainty of whether they need to pick up the pace of rate hikes again. Maybe that is why mortgage applications have been falling for 3 straight weeks sitting at a 28 year low in the US while activities are picking up in Canada.
And finally, Vancouver is getting a 10.7% increase in property taxes. Definitely doesn’t feel good if you have to fork out your hard earn money, but nationally speaking Vancouver property taxes are not that high. I have included a comparison made before the tax hike.
Have a great month!
