Strong sales push Metro Vancouver home prices past the rate hike in July.
The July Bank of Canada interest rate hike caught some people by surprise, but despite the news, home prices across all home types in Metro Vancouver rose again in July. Strong sales figures continue to push up against low levels of housing inventory across the region.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,455 in July 2023, a 28.9 per cent increase from the 1,904 sales recorded in July 2022. This was 15.6 per cent below the 10-year seasonal average (2,909).
“While sales remain about 15 per cent below the ten-year average, they are also up about 30 per cent year-over-year, which is not insignificant,” Andrew Lis, REBGV’s director of economics and data analytics said. “Looking under the hood of these figures, it’s easy to see why sales are posting such a large year-over-year percentage increase. Last July marked the point when the Bank of Canada announced their ‘super-sized’ increase to the policy rate of one full per cent, catching buyers and sellers off guard, and putting a chill on market activity at that time.”
Across all detached, attached and apartment property types, the sales-to-active listings ratio for July 2023 continue to remain above 12%, meaning that there is continued upward pressure on prices.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,210,700. This represents a 0.5 per cent increase over July 2022 and a 0.6 per cent increase compared to June 2023.
In South Surrey & White Rock specifically, we are seeing a strong market for condos and townhouses. Prices increased month-over-month by 6%, now sitting at an average price of $823,500. While still historically low, detached home inventory rose 12% in July, providing buyers with more choice in the market.
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Alex K. Liang: 604-817-5179 | Parm Pooni: 604-657-1742
