It is too early to call this a shift in the market as we transition into fall but if this were like the start of a Canucks game, we’d be paying close attention as sales are being significantly outpaced by new listings so far in September.

But like with the Canucks, we are optimistic that this burst of new listings will lead to sales as buyers finally get to see some opportunity of choice creeping back in. We’re halfway through the first period, I mean month, so there is plenty of market to go in the fall. But for the first time in a while, opportunity is knocking for buyers.  And the Bank of Canada did their part, keeping its rate the same. Now we’ll see what the US Fed does next week with its rate. Indications are it will remain the same, which could help set the stage for a plateau of interest rates and begin the conversation of when they will start to edge down. 

Let’s start with listings. That’s really the story so far in September and could very well be the story of this fall market. At mid-month in Greater Vancouver, there have been 2,982 new listings, which is higher than the 2,331 new listings at mid-August and above the 2,741 new listings at the mid-point of July. It’s higher than September last year at mid-month when 2,244 new listings had come out and even higher than the mid-point of the busy September 2021 market where 2,891 new listings had come out with much higher sales.  Although last year, we saw a surge in new listings to start the month and that number in the last half slowed. That may change this year and we could see the first over 6,000 new listings months since early 2022. And without the same pace of sales, we’ll see the highest growth in active listings in the last few years. There will be over 11,000 active listings in Greater Vancouver for the first time since June 2021.

At the mid-point of September, there were 896 sales in Greater Vancouver, a decline from 1,198 sales at the mid-point of August and a decline from the 1,295 sales at the mid-point of July. But at the mid-point of September last year, there were 843 sales. A similar start compared to September last year but far off the 1,477 sales in September 2021. Interest rate increases have had their way with the market and buyers are reacting as a result. September always starts slow though as everyone transitions to work and school from a summer of travel and fun, so we should expect the second half of the month to produce more sales. Hitting 2,000 sales in September isn’t likely though, so we’ll probably see the sub 2,000 sales activity creep back for the first time since February of this year. But as more buyers see the opportunity of more choice coming back to the market with the change to take advantage of potentially less competition and an ability to negotiate, sales numbers could increase. As we said earlier, if we had more listings, we’d have more sales. It’s still early, and we’ve still got time to see the numbers of sales increase with the spectre of more listings.

Sales to listings ratios dropped significantly so far, to be expected with such a dramatic increase in new listings and fall in sales. So far in September, the absorption rate of new listings is only at 29% compared to 51% at the mid-point of August and 38% at the mid-point of September last year. We’ve seen an average of 55% so far this year since January, so this is something to watch as the month ends. As expected, detached had the lowest uptake on new listings as 25% of those that came on selling so far, while townhomes were a little higher at 29% and condos at 32%. As has been the case since interest rates climbed, lower price points have seen stronger buyer demand. Not surprising and this will continue through the fall.

Some areas to watch in September: Vancouver East has seen a sluggish start to the month, even when compared to last year in September. North Vancouver has seen as many new listings so far as there were in all of August, while sales are on pace to be far ahead of September last year – more listings, more sales. West Vancouver is similarly seeing as many listings so far as all of August and sitting with a 12% absorption rate. Listings are coming fast on the North Shore! Richmond is showing stronger absorption rates compared to most of Greater Vancouver, especially with townhouses. New Westminster is showing very slow growth in listings, especially townhouses where there are a third of the number of new listings so far compared to August at mid-month. Ladner and Tsawwassen are both showing the most sales a mid-month so far compared to the last 3and 4 months respectively. Perhaps the start of a shift back out to the suburbs? In Ladner so far there have been more townhouse sales than new listings and in Tsawwassen, there have been more detached sales at mid-month compared to all of August.

There will be much to watch as the remainder of September develops. Supply is the issue and both the City of Vancouver with their approval of all RS Zones now allowing multiplexes and the Federal Government eliminating GST on new rental projects recognizing this. While helpful, it’s not enough.

The City of Vancouver cited 500 applications in the queue for the new multiplex in single-family zones with an expectation of 150 to 200 a year – out of over 60,000 single-family lots available. A drop in the bucket. The needle may not move far with this, but it’s a start to recognizing that eliminating restrictions and taxes is what’s needed. Perhaps that will lead to less restrictions on the market. Any kind of control stifles growth, that’s what needs to be understood by all levels of government. 

Here’s a summary of the numbers:

Greater Vancouver 

876 units sold so far in September 2023 compared to

1,198 units sold at mid-month in August 2023 

1,295 units sold at mid-month in July 2023 

843 units sold at mid-month in September 2022

1,477 units sold at mid-month in September 2021

2,982 new listings so far in September 2023 compared to 

2,331 new listings at mid-month in August 2023 

2,741 new listings at mid-month in July 2023 

2,244 new listings at mid-month in September 2022

2,897 new listings at mid-month in September 2021

Total active listings are at 10,831 compared to 10,099 at mid-month in September 2022, and 10,327 at mid-month in August 2023.

Sales to listings ratio is at 29% compared to 38% at mid-month in September 2022 and 51% at mid-month in August 2023.

Vancouver West 

164 units sold so far in September 2023 compared to

227 units sold at mid-month in August 2023 

229 units sold at mid-month in July 2023 

150 units sold at mid-month in September 2022

254 units sold at mid-month in September 2021

604 new listings so far in September 2023 compared to 

480 new listings at mid-month in August 2023 

609 new listings at mid-month in July 2023 

494 new listings at mid-month in September 2022

730 new listings at mid-month in September 2021

Total active listings are at 2,411 compared to 2,291 at mid-month in September 2022, and 2,354 at mid-month in August 2023.

Sales to listings ratio is at 27% compared to 30% at mid-month in September 2022 and 47% at mid-month in August 2023.

Vancouver East

78 units sold so far in September 2023 compared to

120 units sold at mid-month in August 2023 

151 units sold at mid-month in July 2023 

77 units sold at mid-month in September 2022

162 units sold at mid-month in September 2021

337 new listings so far in September 2023 compared to 

239 new listings at mid-month in August 2023 

310 new listings at mid-month in July 2023 

228 new listings at mid-month in September 2022

361 new listings at mid-month in September 2021

Total active listings are at 1,137 compared to 1,102 at mid-month in September 2022, and 1,081 at mid-month in August 2023.

Sales to listings ratio is at 23% compared to 34% at mid-month in September 2022 and 50% at mid-month in August 2023.

North Vancouver

72 units sold so far in September 2023 compared to

100 units sold at mid-month in August 2023 

88 units sold at mid-month in July 2023 

47 units sold at mid-month in September 2022

87 units sold at mid-month in September 2021

258 new listings so far in September 2023 compared to 

140 new listings at mid-month in August 2023 

184 new listings at mid-month in July 2023 

206 new listings at mid-month in September 2022

Total active listings are at 580 compared to 597 at mid-month in September 2022, and 510 at mid-month in August 2023.

Sales to listings ratio is at 28% compared to 23% at mid-month in September 2022 and 71% at mid-month in August 2023.

West Vancouver 

19 units sold so far in September 2023 compared to

30 units sold at mid-month in August 2023 

25 units sold at mid-month in July 2023 

26 units sold at mid-month in September 2022

33 units sold at mid-month in September 2021

154 new listings so far in September 2023 compared to 

84 new listings at mid-month in August 2023 

101 new listings at mid-month in July 2023 

118 new listings at mid-month in September 2022

115 new listings at mid-month in September 2021

Total active listings are at 613 compared to 576 at mid-month in September 2022, and 594 at mid-month in August 2023.

Sales to listings ratio is at 12% compared to 22% at mid-month in September 2022 and 36% at mid-month in August 2023.

Richmond

112 units sold so far in September 2023 compared to

150 units sold at mid-month in August 2023 

160 units sold at mid-month in July 2023 

117 units sold at mid-month in September 2022

317 units sold at mid-month in September 2021

334 new listings so far in September 2023 compared to 

291 new listings at mid-month in August 2023 

286 new listings at mid-month in July 2023 

236 new listings at mid-month in September 2022

317 new listings at mid-month in September 2021

Total active listings are at 1,248 compared to 1,234 at mid-month in September 2022, and 1,211 at mid-month in August 2023.

Sales to listings ratio is at 34% compared to 50% at mid-month in September 2022 and 52% at mid-month in August 2023.

Burnaby East 

10 units sold so far in September 2023 compared to

12 units sold at mid-month in August 2023 

14 units sold at mid-month in July 2023 

10 units sold at mid-month in September 2022

22 units sold at mid-month in September 2021

32 new listings so far in September 2023 compared to 

25 new listings at mid-month in August 2023 

23 new listings at mid-month in July 2023 

16 new listings at mid-month in September 2022

27 new listings at mid-month in September 2021

Total active listings are at 97 compared to 71 at mid-month in September 2022, and 92 at mid-month in August 2023.

Sales to listings ratio is at 31% compared to 63% at mid-month in September 2022 and 48% at mid-month in August 2023.

Burnaby North 

58 units sold so far in September 2023 compared to

75 units sold at mid-month in August 2023 

81 units sold at mid-month in July 2023 

60 units sold at mid-month in September 2022

72 units sold at mid-month in September 2021

146 new listings so far in September 2023 compared to 

123 new listings at mid-month in August 2023 

168 new listings at mid-month in July 2023 

111 new listings at mid-month in September 2022

167 new listings at mid-month in September 2021

Total active listings are at 508 compared to 435 at mid-month in September 2022, and 465 at mid-month in August 2023.

Sales to listings ratio is at 40% compared to 54% at mid-month in September 2022 and 61% at mid-month in August 2023.

Burnaby South 

53 units sold so far in September 2023 compared to

66 units sold at mid-month in August 2023 

66 units sold at mid-month in July 2023 

53 units sold at mid-month in September 2022

106 units sold at mid-month in September 2021

147 new listings so far in September 2023 compared to 

126 new listings at mid-month in August 2023 

141 new listings at mid-month in July 2023 

83 new listings at mid-month in September 2022

154 new listings at mid-month in September 2021

Total active listings are at 493 compared to 408 at mid-month in September 2022, and 462 at mid-month in August 2023.

Sales to listings ratio is at 36% compared to 64% at mid-month in September 2022 and 52% at mid-month in August 2023.

New Westminster 

33 units sold so far in September 2023 compared to

55 units sold at mid-month in August 2023 

69 units sold at mid-month in July 2023 

25 units sold at mid-month in September 2022

56 units sold at mid-month in September 2021

96 new listings so far in September 2023 compared to 

96 new listings at mid-month in August 2023 

112 new listings at mid-month in July 2023 

96 new listings at mid-month in September 2022

123 new listings at mid-month in September 2021

Total active listings are at 306 compared to 300 at mid-month in September 2022, and 304 at mid-month in August 2023.

Sales to listings ratio is at 34% compared to 26% at mid-month in September 2022 and 57% at mid-month in August 2023.

Coquitlam 

84 units sold so far in September 2023 compared to

117 units sold at mid-month in August 2023 

119 units sold at mid-month in July 2023 

66 units sold at mid-month in September 2022

117 units sold at mid-month in September 2021

234 new listings so far in September 2023 compared to 

170 new listings at mid-month in August 2023 

229 new listings at mid-month in July 2023 

168 new listings at mid-month in September 2022

189 new listings at mid-month in September 2021

Total active listings are at 660 compared to 634 at mid-month in September 2022, and 611 at mid-month in August 2023.

Sales to listings ratio is at 36% compared to 39% at mid-month in September 2022 and 69% at mid-month in August 2023.

Port Moody

18 units sold so far in September 2023 compared to

32 units sold at mid-month in August 2023 

51 units sold at mid-month in July 2023 

31 units sold at mid-month in September 2022

36 units sold at mid-month in September 2021

52 new listings so far in September 2023 compared to 

49 new listings at mid-month in August 2023 

65 new listings at mid-month in July 2023 

57 new listings at mid-month in September 2022

57 new listings at mid-month in September 2021

Total active listings are at 185 compared to 196 at mid-month in September 2022, and 176 at mid-month in August 2023.

Sales to listings ratio is at 35% compared to 54% at mid-month in September 2022 and 65% at mid-month in August 2023.

Port Coquitlam 

25 units sold so far in September 2023 compared to

36 units sold at mid-month in August 2023 

43 units sold at mid-month in July 2023 

28 units sold at mid-month in September 2022

43 units sold at mid-month in September 2021

83 new listings so far in September 2023 compared to 

67 new listings at mid-month in August 2023 

71 new listings at mid-month in July 2023 

66 new listings at mid-month in September 2022

76 new listings at mid-month in September 2021

Total active listings are at 198 compared to 176 at mid-month in September 2022, and 178 at mid-month in August 2023.

Sales to listings ratio is at 30% compared to 42% at mid-month in September 2022 and 54% at mid-month in August 2023.

Ladner 

13 units sold so far in September 2023 compared to

11 units sold at mid-month in August 2023 

8 units sold at mid-month in July 2023 

10 units sold at mid-month in September 2022

20 units sold at mid-month in September 2021

30 new listings so far in September 2023 compared to 

17 new listings at mid-month in August 2023 

23 new listings at mid-month in July 2023 

20 new listings at mid-month in September 2022

23 new listings at mid-month in September 2021

Total active listings are at 101 compared to 95 at mid-month in September 2022, and 102 at mid-month in August 2023.

Sales to listings ratio is at 43% compared to 50% at mid-month in September 2022 and 65% at mid-month in August 2023.

Tsawwassen

23 units sold so far in September 2023 compared to

16 units sold at mid-month in August 2023 

19 units sold at mid-month in July 2023 

6 units sold at mid-month in September 2022

28 units sold at mid-month in September 2021

39 new listings so far in September 2023 compared to 

36 new listings at mid-month in August 2023 

34 new listings at mid-month in July 2023 

32 new listings at mid-month in September 2022

28 new listings at mid-month in September 2021

Total active listings are at 165 compared to 183 at mid-month in September 2022, and 163 at mid-month in August 2023.

Sales to listings ratio is at 59% compared to 19% at mid-month in September 2022 and 44% at mid-month in August 2023.

Highlights of the Dexter Report August 2023

• Bank of Canada holds prime rate at 5% but keeps door open to further hikes

• Median price of a West Side detached house up $1 million in past year

• Total new listings have been falling, month-over-month, since May

• East Vancouver is leading all markets in detached house sales 

• South Delta detached houses are moving to a buyer’s market 

It is a sad commentary on the Greater Vancouver housing market when buy and sell decisions hinge more on minuscule interest rate moves than on the pragmatic needs of consumers. But that is what is happening. Two more consecutive Bank of Canada rate hikes in June and July – at 0.25% each – were enough to drive August housing sales down to the lowest level in six months and stall a rally in new listings, which fell 16% from a month earlier.

The Bank of Canada held the prime rate at 5% at its September 6 setting, but any confidence was dashed as the Bank warned that it would not hesitate to jack rates higher if the economy – and the housing market – began to heat up again.

The best advice for buyers is simply to take today’s higher lending rates into the equation and do the best to negate them. It is clear the Bank of Canada is failing, failing to admit it overshot on rate increases over the past year and trying to maintain the illusion it knows what it is doing.

Those considering purchasing a home between now and the next Bank of Canada scheduled rate hike announcement on October 25th should secure a pre-approved 120-day mortgage and talk to a mortgage professional about the best rate and term. 

However, buyers and sellers should not be blinded by interest rate fluctuations. It is likely, considering the economic damage already done, and political pressure, that Bank of Canada rates will not increase again this year. Instead, buyers should concentrate on property values and sellers on matching their price to the market.

Buyers cannot ignore the investment dynamics this year. In the past six months, as both sales and listings fell, prices have continued to increase. The August 2023 benchmark price, at $1,208,400, is $65,000 higher than in March of this year. The benchmark detached house price was up $156,000 to $2,018,500 in the same period and the typical condo apartment price increased by nearly
$40,000 while townhouse benchmark prices have risen 5% since March to $1,103,900.

But August benchmark prices across Greater Vancouver were down 0.2% from July 2023 and strata prices have barely budged in three months. 

A key reason for a lack of new listings is universally higher prices that have frozen sellers in place and lower rates they currently have on mortgages. A look at the 20 Greater Vancouver markets shows that the August benchmark price varies very little from Bowen Island ($1.41 million) to the Westside of Vancouver ($1.34 million) or from East Burnaby ($1.19 million) to Ladner ($1.17 million). The potential of pocketing a healthy dividend when moving within the region is diminished, persuading many potential sellers to stay put. 

It currently feels like a market waiting for an excuse to buy mixed with a reluctance to sell. Growing pent up buyer demand may be the best way to explain the status of the market. But without any increase in listings, it makes it difficult for that pent up demand to release. And there’s little to suggest we’ll see any increase in supply. 

Banks are working with homeowners to keep mortgages funded – one option is allowing 30-year amortizations - and many with lower rate mortgages are unwilling to dive into the high interest rate pool and make a move. Expect that when the mortgage climate changes to more favourable buyer conditions, sales levels will increase in a significant way. The number of new listings in August was 6% below the 10-year average and has been falling, month-over-month, since May. This has kept it a seller’s market with only a 4-month supply of listings available – even with the low sales levels. This is going to keep the overall inventory of listings at two thirds the level they should be to get to balance or to favour buyers.

The bottom line is that September, often a bellwether month for sales, could ring in a traditional market rally, especially with no further increase in lending rates. This is the time for buyers and sellers to take advantage of the upturn.

If you are considering a sale, it is better to list now before fall competition increases. For those looking to buy, the current price stability offers a short-time opportunity.

Regional market data for August 2023

Greater Vancouver: There were a total of 2,296 sales in August, down 6% from July and 23% fewer than in June 2023, but up 21% from August of 2022. Active listings were 10,082 at the end of August, compared to 10,099 at that time last year and 10,301 at the end of July. New listings in August were down 16% compared to July 2023, but up 19% compared to August 2022. Despite a rally over the past six months, overall prices have stabilized. The composite home price in August, at $1,208,400, was up just 2.5% from August 2022, though 27.6% higher than in August of 2020. With a tight supply and a sales-to-listing ratio of 57% in August, Greater Vancouver remains in a seller’s market.

Fraser Valley: The Fraser Valley Real Estate Board recorded 1,273 sales in August 2023, a decrease of 6.9% compared to July. Sales were up 25.2% compared to August 2022. New listings dropped to 2,622 in August, down 8.2% from July, but 28.2% above August 2022. Active listings have been rising since last December and grew again in August by 1.5%, from July, to 6,291, just 7% off the 10-year average. The overall benchmark home price in August was $978,066 and all sector prices were nearly unchanged (down 0.6%) from July 2023 but up slightly from August 2022. The biggest year-over-year price move was condo apartments, up 2.5% from August 2022, to $553,500.

Vancouver Westside: There was a price shocker in this trendsetting market in August. Only 141 detached houses were listed for sale and 69 of them sold for a median price of $4,070,000, almost exactly $1 million more when compared to August 2022. We believe this is an unprecedented one-year median price increase anywhere at any time in Canada. To say detached demand is high is an understatement. Strata action was more muted, with townhouse and condo apartment sales and median prices nearly level with July 2023. Condo medians, at $820,875, were nearly the same as in August 2022. Total August sales were 433, down 1% from July 2023, and up 18% from August 2022. New listings in August were down 20% compared to July 2023, but up 13% compared to August 2022. The inventory of total residential listings is steady at 5-month supply, creating a balanced market with an August sales-to-listings ratio of 53%. 

Vancouver East Side: More detached houses sold on the East Side in August than in any other market in Greater Vancouver. The 80 detached transactions were also much higher than in August 22, when 57 houses sold. Prices are the key. At a benchmark of $1,913,500, East Vancouver detached prices are $1.6 million less than on the neighbouring Westside and about $100,000 below the Greater Vancouver benchmark. Some of the sales impetus could be from investors trying to assemble East Vancouver detached lots in anticipation of the higher-density zoning expected this fall, which would allow up to six housing units on detached lots. Total August sales reached 250, down from 286 (13%) in July 2023, but up from 196 in August 2022. Active listings were at 1,013 at month end, though new listings in August were down 25% compared to July 2023. This is a seller’s market with a tight supply and a sales-to-listing ratio at 66%, the highest since August 2021.

North Vancouver: The strata market is strong in North Vancouver, with a sales-to-new listing ratio of 74% and sales up sharply from both a month and a year earlier, even as sales of detached houses fell. There were 85 condo apartment sales in August, at a benchmark price of $817,400, up 0.4% from July 2023. There were 38 townhouse sales, at a benchmark of $1,312,100, but this price was down nearly 3% from a month earlier. Detached house prices, benchmarked at $2,268,000, have not budged in three months, but remain 2.4% higher than a year ago. The supply of total residential listings is steady at a tight 3-month supply, confirming this as a seller’s market.

West Vancouver: August sales were up month-over-month driven by the detached segment – not hearing that very often these days, especially in West Vancouver. It was the highest detached absorption rate since April for the community. Total sales were 57 in August and detached transactions accounted for 34 sales, at a benchmark price of $3,273,900, a price up 10% from six months ago, but still 2.4% below August 2022. New listings in August were down 20% compared to July 2023 and down 3% compared to August 2022. This is a buyer’s market, with a 10-month supply of listings and a 39% sales-to-listing ratio.

Richmond: Richmond prices have flatlined over the past three months, though they remain about 4% higher than a year ago, with the benchmark price at $1,187,900. Listings are down, as are new home starts. As of August 1, only 273 new condos had started, for example, down from 378 at the same time last year, and total listings were down to 1,162 at month’s end, about 200 units lower than a month earlier. We estimate there is only a 4-month supply in this seller’s market, with a sales-to-listing ratio at 64%, up from 54% a month earlier.

Burnaby East: This is a seller’s market but with few sellers and even fewer buyers, with just 31 sales in August from a total inventory of 83 homes for sale. There is only a 3-month supply on the market and the sales ratio is running at 82%, the highest in at least two years. The benchmark home price in August was $1,195,100, down 0.7% from a month earlier, but up nearly 7% from August 2022.

Burnaby North: Total sales in August reached 139, down 13% from July 2023 but up 16% from August of last year. We may see an increase in sales of detached houses right across Burnaby this year as the City prepares to allow laneway homes on detached lots. The laneway houses can be up to 1,500 square feet but they are also restricted to long-term rentals. The benchmark price of a Burnaby North detached house is $2,047,100, up 10% from six months ago but unchanged from July 2023. New listings in August were down 11% compared to July 2023, but up 36% compared to August 2022. Total residential listings reflect a 4-month supply, and the sales-to-listings ratio is 54% in this seller’s market,

Burnaby South: While total sales are up from last year, they have been tracking down for three months, with the 133 transactions in August down 24% since June and 4% below July 2023. Prices dipped 0.3% from July to a composite benchmark of $1,138,100. New listings in August were down 10% compared to July 2023, but up 26% compared to August 2022. Residential listings are steady at 3 month’s supply, but the detached market is flirting with a buyer’s market. The overall sales-to-listings ratio is 62% compared to 59% in July 2023, and 73% in August 2022. 

New Westminster: The Royal City was recently named the most livable city in the Lower Mainland and Number 3 in B.C., but after a surge in July sales, it posted one of the biggest declines in month-over-month sales in August. Total August sales, at 87, were down 27% from July 2023 but up from 77 transactions a year earlier. New listings dropped 16% from July, but total active listings are steady at 299 units. This includes a welcome increase in townhouse listings, which are now at a 5-month supply. Prices are holding firm, with townhomes benchmarked at $959,600, up 3% from a year ago; condo apartments also up 3% at $659,200; and detached houses at $1,587,300, unchanged from July 2023 but 9% higher than a year earlier. New West remains a seller’s market with a sales-to-listing ratio of 56%.

Coquitlam: With the imminent start of the massive Fraser Mills development and other condo projects, Coquitlam will be seeing higher starts by next year, but new supply so far in 2023 has plunged. Only 795 new homes have started, compared to 1,923 in the first seven months of 2022. Meanwhile, new listings in August were down 28% compared to a month earlier and total active listings, at 599, are down from 636 in July 2023. All sector prices are unchanged from July 2023, with the benchmark price up a mere 1.2% from a year earlier. With just a 3-month supply of listings and a sales ratio of 69%, this is a seller’s market despite the flatline prices.

Port Moody: Another strata/rental project in Port Moody has stalled at the design approval stage in a city that has had challenges getting new projects to market. The latest is a proposed six-storey, 60-unit project on St. John’s with 30 strata condos. New listings in August were down 31% from both July 2023 and August 2022 and there are only 167 active listings, lowest in a year. Still, with recent approvals, 306 new apartments have started so far in 2023, compared to just 5 a year ago, so there is progress on supply. Total sales in August were down 31% from July with 58 transactions. Condo benchmark prices are steady at $729,600 and detached houses at $2,076,500, are down 2.8% from August 2022, one of the few year-over-year declines in detached values. This is a balanced market with a total sales-to-listing ratio at 75%, compared to 43% a year ago and a healthy 6-month supply of detached listings. 

Port Coquitlam: A total of 60 properties sold in August, down 5% from July and off 11% from August 2002. New listings are tracking down and total active listings at the end of August were 169, compared to 172 a month earlier. With a sales-to-listing ratio of 60%, this is a healthy seller’s market and worth a look at by buyers. The benchmark home price was unchanged from July at $971,400, the lowest price in the Tri-Cities.

Pitt Meadows: Aside from Squamish and the Sunshine Coast, Pitt Meadows posted the biggest month-over-month detached house price drop in August, with the benchmark price down 2.8% from July 2023, to $1,317,800. Total units sold in August were 23, down 4% from July 2023 but up 35% from August 2022 so the detached price slide is a bit of a puzzle. The supply of total residential listings is steady at 3 month’s supply, while the sales-to-listings ratio of 60% confirms this as a seller’s market. 

Maple Ridge: Total sales in August were 119, down 17% from July 2023, but up from 113 transactions in August 2022, New listings in August were down 4% compared to July 2023 and up 17% compared to August 2022. The total supply of residential listings is up to 5-month supply (balanced market conditions), with a sales-to-listings ratio of 43% compared to 50% in July 2023. The benchmark price, at $1,005,700 has held steady (up 1.5%) since August of last year.

Ladner: While detached house listings are now at 6-month supply and in a balanced market condition, the strata sector is a different story with a shortage of both townhouses and condo apartments. Total new listings August were down 43% compared to July 2023. Despite the shortfall, prices are stable: the townhouse benchmark in August was $988,000, unchanged from July, while the condo benchmark was up 2%, month-over-month, to $731,900. Detached prices were unchanged from July, at $1,446,000, up 2% from a year ago. This is a seller’s market with a sales-to-listing ratio of 73% and a tight inventory. 

Tsawwassen: Detached houses are now in a buyer’s market with a 9-month supply and August benchmark prices are down 3% from a year ago to $1,547,800. Opportunity awaits detached buyers here. Townhomes are maintaining sales levels while there were more condo sales than new listings in August. There were just 28 sales in all during August, down 15% from July 2023. Active Listings were at 162 at month end compared to 179 at that time last year and 161 at the end of July. With a 6 month supply of total residential listings and sales success ratio of 52%, this is a balanced market.

Surrey: B.C.’s second-biggest city posted mixed results in August, with detached sales and prices flatlining from a month earlier and sales of strata units falling from July 2023. Detached sales reached 175, unchanged from a month earlier, while the benchmark price was down 0.5% month-over-month to $1,675,900. Townhouse sales fell 13%, month-to-month, to 189 transactions and the benchmark price was down 1.3% to $881,600. Condo apartment sales were down 7.6% from July at 207 units and the benchmark price was off 1% to $548,200.

Highlights of the July Dexter Report 

• Home prices are virtually unchanged in the past year

• Total sales in Greater Vancouver are up nearly 30% from July 2022

• Wily buyers take advantage of a summer sales slump 

• There are now 16,400 properties for sale across Metro Vancouver

• Vancouver density plan invites higher taxes for owners     

On July 25 the City of Vancouver recommended a massive rezoning of single-family neighbourhoods to create more of what is known as the “missing middle” housing. The province wants to make such ideological-driven rezoning mandatory in every city in British Columbia with legislation promised to come this fall.

The Vancouver concept would allow four to six homes to be built on most RS-zoned lots, or 60 percent of the city’s buildable land, according to the ‘senior green building planner’ for Vancouver. It also restricts the size of any new detached house. The policy, though, has forgotten the major player in the plan: detached house owners, many of whom want no part of it.

The City of Victoria passed a similar rezoning plan in January of this year. Seven months later not a single application has come forward from a detached house owner willing to turn their private land into a multi-unit rental complex.

Many detached house owners are not willing to risk their financial future and peace of mind by jumping on board a plan that they fear, rightly, will transform their quiet communities and expose them to the federal capital gains tax that could grab up to 50% of their real estate equity for investment properties.

Consider this. The average price of a Vancouver Westside detached house in July was nearly $4.3 million. If sold as a paid-for private residence, the capital gains tax would be zero. But, if the owner divided the house into four rentals and lived in one unit and then sold the property for the same price, the owner would be responsible for capital gains tax as the owner of the income-producing property.

As well, under Vancouver’s missing middle plan, the detached house owner could only produce a “below-market rental unit” or a secure rental unit (which means forever); or pay a “set-rate bonus payment” for the increased density as a market rental. There is no definition of what the bonus payment would be, but currently, in the Cambie area, it averages $135 per square foot for the extra space in a new development.

The house owner would also be subject to the GST on any new construction; would be required to build any new homes under Vancouver’s expensive and confusing “passive house” energy regulations; and would be subject to higher property taxes and utility costs yet would only be allowed to increase rents by 2% per year under provincial regulations. Private detached house owners are somehow, miraculously, expected to deliver what seasoned developers, city planners and other bureaucrats cannot: low-cost rentals in Vancouver.

The City of Vancouver will present its missing middle plan to public hearings in September. Expect a lot of discussion. 

Prices are not skyrocketing. 

There is a lot of media noise being tossed around about “skyrocketing” Greater Vancouver home prices. While true the Benchmark Price is up about 10% from January to July 2023, to $1,210,700, prices are just 0.5% higher compared to a year ago and in a dozen Greater Vancouver communities – including Burnaby North, Coquitlam, Tsawwassen and West Vancouver – composite prices are lower now than in July 2022. On the bellwether Westside of Vancouver, the July benchmark detached house price, at $3,458,000, was up just 1% from a year ago.

The benchmark condo price this July is $771,600, up 2.7% from last year, but condo prices in East Vancouver, Burnaby North and Burnaby East, arguably the most active condo markets in Greater Vancouver, are up less than 1% from July of last year, which should help convince more buyers to take advantage of the summer slowdown to get into the Greater Vancouver market now.

After peaking in May, sales have declined month by month since buyers have now faced two straight increases in the Bank of Canada rate. Greater Vancouver's total sales in July, at 2,455, were down from 2,988 in June to the lowest level since March. In the Fraser Valley, July sales fell nearly 30% from June 2023 and benchmark prices are up an average of 1% from a year ago. But even with the decline in sales transactions, buyers still want to buy, and many sellers are not desperate to sell.

As the summer continues, there will be more opportunities than we’ve seen over the last four months for buyers. With many people away or taking a break from the market, it’s the prime time to be a buyer. Inventories have increased, giving more options, especially in some areas.

The increase in the Bank of Canada rate and fixed rates bumping up over the last month or so have pulled some buyers from the market. Those with 60 to 90-day rate holds are trying to buy before those rate holds expire while others are content to wait out the increases in borrowing costs. With travel and the many local events returning occupying many people’s time, real estate is losing some of the attention it normally would get. Of course, the lack of resale inventory continues to challenge the market and while we wouldn’t expect to see it increase during the summer months, the number of new listings dropped while absorption rates remained close to the levels we’ve seen this year, and in some areas increased. July saw 4,757 new listings after June produced 5,466 new listings after there were 5,776 new listings in May. Year over year, new listings were higher with 4,067 new listings produced last July which is helping would-be buyers in the market.

Don’t expect the higher interest rates to result in more listings. Sales of residential land to developers have fallen 80% in the past year, largely due to rising financing costs, which will stunt delivery of new strata homes into next year, at least. As well, the Financial Consumer Agency of Canada and the Federal Government have issued guidelines for Canadian banks to help homeowners facing significant increases in mortgage costs. Measures such as waiving penalties to break mortgages and increasing amortization periods to lower payments are on the table. 

Banks do not want to own homes, so don’t expect increased rates to lead to a major rise in mortgage foreclosures or distressed sales. 

Instead, serious buyers should be ignoring summer temptations and shopping through the 10,301 active listings now on the market. Buyers can take advantage of a shallow slump and good selection to secure a property now.

Regional numbers for July 2023 

Greater Vancouver: Total transactions reached 2,455 in July 2023, a 28.9% increase from the 1,904 sales recorded in July 2022. This was 15.6% below the 10-year seasonal average and the lowest level in five months. Total inventory at month end, 10,a301 properties, has moved to a 4-month supply, with detached up to 6 months and into balanced market territory. Townhouses and condos are still at a 3-month supply, though price is key for buyers right now. Looking at year-over-year, sales-to-listings ratios are up while condos remained the same. Overall, the 52% absorption in July is showing strength considering the increase in fixed and variable-rate mortgages. The Benchmark Price for all residential properties 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.

Fraser Valley: July new listings, at 2,855, were down 16.6% compared to June 2023 but 19.7% higher than July 2022 levels, and virtually on par with the 10-year average. Active listings climbed by 4.3% over June, bringing the total inventory for sale to 6,199 properties. Sales totalled 1,368 in July, a decrease of 29.3% from June 2023, but still 37.8% above July 2022. Benchmark detached and townhouse prices were down about 2% from a year ago, with detached at $1,543,300, townhouses at $850,300 , while condo apartment prices increased 0.8% year-to-year at $555,500.

Vancouver Westside: Total sales in July, at 438, were down 17% from a month earlier and 19% higher than July 2022. Despite a 10% surge in benchmark detached house prices since January, prices are up just 1% from a year ago at $3,458,000. Competition is fierce for anything under $3 million. In Kitsilano earlier this week there were only 8 detached homes listed below $3 million, and just 4 in Point Grey, with multiple offers being seen. Active listings were 2,366 at month end compared to 2,453 at that time last year and 2,249 at the end of June. New listings in July were down 7% compared to June 2023. Condo apartments dominated July sales with 325 transactions, and benchmarked at $866,300, up 4% from a year ago. The supply of total residential listings is up to 5-month supply and sales to listings ratio is 43% in this balanced market.

Vancouver East Side: The East Side story in July included a 12% dip in sales from a month earlier and a 21% decline from May 2023, with 286 transactions. Detached house prices flatlined from June 2023, at $1,897,200, but are up 3.7% from a year ago. Condo prices are just 0.5% higher than in July 2022, at $717,700. Active Listings were at 1,082 at month end compared to 1,191 at that time last year and 1,082 at the end of June. New listings in July were down 18% compared to June 2023. This is a seller’s market with just a 4-month supply and sales-to-listing ratio of 57%. 

North Vancouver: North Van remains a strong seller’s market, especially in the condo sector, which has only a 2-month supply of inventory and a 68% sales-to-listing ratio. The benchmark condo price is $814,400, which has not moved much (up 2%) in a year, despite the robust sales. A total of 185 properties sold in July and sales have tracking down since May. Active listings were at 530 at month end compared to 573 at that time last year and 553 at the end of June; New Listings in July were down 21% compared to June 2023.

West Vancouver: Total sales were 47 in July as the summer siesta affected even the most prestigious market in Metro. This is a buyer’s market with more than 600 active listings and sales ratio in the mid-20% range and a 13-month supply of properties for sale. The Benchmark Price is a north of $2.6 million and the typical detached house sold in July for $3,241,000, down 4.2% from a year earlier.

Richmond: Richmond should be benefitting from Canada’s immigration surge but there is a disconnect in Ottawa: there is a foreign homebuyer ban for two year and no one in charge apparently realized that 500,000 newcomers may need a place to live. There is little relief in sight: when the federal cabinet was shuffled the former immigration minister became the new housing minister. Richmond, the most multi-ethnic enclave in B.C., has seen housing sales drop 26% over the past two months to 294 in July and new listings were down 15% from a month earlier. This remains a seller’s market, though, with just a 3-month supply, a sales ratio of 53% and the Benchmark Price up 2.6% year-over-year to $1,118,300.

Burnaby East: Sales in July, at 47, were lower than even three years ago and new listings dropped sharply 39% from June 2023. Still, with a sales-to-listing ratio of 64% from a limited supply, this qualifies as a seller’s market. Condos are the market maker here, as in most of Burnaby, but the benchmark condo price is frozen, rising just 0.7% over the last 12 months to $803,700 in July.

Burnaby North: Total sales in July were 160, down from 170 in June 2023, but, up from 29% compared to July 2022. Active Listings were at 481 at month end compared to 475 at that time last year and 440 at the end of June. A seller’s market with a 3-month supply and a sales ratio of 55%, detached houses are the only sector posting year-over-year price gains, with detached prices up 2.4% to just over $2 million. Townhouse prices, by comparison, are down 2.7% year-over-year and condo benchmarks have flatlined at $747,000. The sales ratio is 55% but this more a reflection of supply than demand.

Burnaby South: Total sales wilted 40% over the past two months and July was far from hot with transactions at 139, lower even than in July of 2019 but up 10% from July 2022. The Benchmark Price inched up 1.1% from June 2023 to $1,135,000. There is a tight supply of 457 properties for sale and the sales ratio is running at 59%, the lowest July pace in three years.

New Westminster: The secret is out as buyers have found that the Royal City is one of the best-priced markets in Metro Vancouver. Detached sales, at 119, are up from June 2023 and up 127% year-over-year with a 97% absorption rate. The condo market saw a growth in new listing in July compared to June but, like townhomes, remain in a seller’s market with 2-month supply. The Benchmark Price in New Westminster is $846,400, up 2% from a year ago.

Coquitlam: Sales in July, at 223, were down 16% from a month earlier and 21% from May, but up 57% year-over-year in this seller’s market. The big mover is townhouses, with sales up 157% year-over-year and active listings down from June. The townhouse benchmark is $1,061,900, down nearly 2% from a year ago and it dropped a further 1% in July compared to a month earlier. Detached house prices are holding firm at $1,795,400, as is the overall sales-to-listing ratio of 55%,

Port Moody: Two big residential developments have apparently been approved, including the three-tower Westport Village on the former Andres Wine site, that has been in 18 years in planning. It will supply hundreds of new housing units, eventually, to a market with just a 2-month supply of listings. With total sales of 85 in July, down from one and two months earlier, and a sales ratio of 77%, this is a strong seller’s market. The Benchmark Price is down 6.5% from a year ago at $1,121,500.

Port Coquitlam: Buyers scrambling for more affordability can’t find enough supply in the lowest-priced TriCities market where the Benchmark Price in July was $975,800. Condos are down to a one-month supply. The lack of inventory, just 172 total active listings, has stunted sales, which dropped to 73 in July, the lowest level for that month in at least four years, despite a sales-to-listing-ration of 60%.

Pitt Meadows: The sales-to-listing ratio was 52% in this seller’s market where buyers are chasing too-few listings. With new listings falling, there were only 74 properties on the market at the end of July after 24 sales in the month. Despite a price rally this year, the benchmark detached house price is just 2.4% higher than a year earlier, at $1,355,900. Townhouse prices are down 1.8%, year-over-year, to $836,6000.

Maple Ridge: Total sales have been tracking down since May, but reached 143 transactions in July, up 32% from July 2022. At $739,600, Maple Ridge has the lowest priced townhouses in Metro Vancouver. The benchmark detached house is down 2.4% from a year ago, at $1,307,400. With 622 active listings and a sales success ratio of 50%, this is a seller’s market with stable pricing.

Ladner: There were 22 fresh townhome listings in July compared to just 7 in June 2023, as the benchmark price increased 4.1% from a year earlier to $987,500.
Detached sales suffered from higher lending rates, though as sales dropped to 14 from 23 transactions in June 2023 even as the benchmark price jumped 16% so far this year to $1,50,2000. Prices are still slightly below a year earlier. There are 102 total active listings and a sales ratio of 45% in this seller’s market.

Tsawwassen: Buyers aren’t the problem in Tsawwassen, with an overall sales ratio of 58% and condominium absorption up to 69% from 63% in June. The problem is supply with new listings dropping 9% from June 2023, and just 161 active listings available. The Benchmark Price is down about 2% across the board compared to a year earlier, to $1,222,000, with detached houses at $1,550,600, despite price increase since February. This is considered a balanced market.

Surrey: Detached house sales fell 34% in July from a year earlier but were up 30% from June in a perplexing rally considering recent interest rate hikes. Detached prices, however, have barely moved, up 1.1% from July 2022 to $1,683,300. Townhouse and condo sales are down double-digits from a year ago, at, respectively, $893,000 and $555,000 in July. The Fraser Valley Real Estate chairman summed up the Valley market well: “Summer is typically a slower period for the real estate sector and the higher interest rates are contributing to the market slowdown,” said Narinder Bains “We’re seeing less traffic as buyers and sellers put a pause on decisions and we expect this trend to continue until the fall cycle.”

Highlights of the May 2023 Dexter Housing Report

• May average home price $200,000 higher than in January

• May home sales-to-listing ratio a sizzling 59%

• Total sales the highest this year and higher than in May 2022

• Surrey detached new listings were up 53% from April 2023

• Overall higher listings may point to a price plateau this summer 

After five months that defied most predictions and pundits, the Metro Vancouver housing market has righted itself - as we’ve been saying the last few months, while quickly shifting to a seller’s market. But the potential is there to be more balanced between buyers and sellers as we sail into the summer.

May exposed a slight tilt in that balance in favour of buyers, with sellers about to face a more competitive environment with the increase in new listings that happened in May. And depending on what happens with the Bank of Canada’s interest rate announcement on Wednesday, that could change some buyers’ ability to compete.

Back in January and before – when the headlines were full of predictions of a recession and a continued housing downturn - we urged homebuyers to jump into the market to take advantage of the dip. Since then, the average home price in Greater Vancouver has shot up by $200,000 and the sales-to-listing ratio has risen from 29% to 61% in April before settling to 59% in May, close to the hottest markets in 2021 and early 2022.

We based our forecast not only on the strength of the regional economy but on decades of experience as real estate professionals at Dexter Realty. We have seen deep downturns and heady highs before, so we understand the patterns and how quickly it can change.

While May 2023 marked the fifth straight month-over-month increase in sale and price, it also sent the first signals of a chance for a market shift.

While we are still in a seller’s market in most areas and property types, if the increase in new listings continues, this will favour buyers. And perhaps some buyers are waiting for the June 7 Bank of Canada announcement, which could affect mortgage rates.

The evidence is in the number of sales and listings in May, and when they occurred. It is all about momentum.

In May 2023 a total of 3,411 residential properties sold in Greater Vancouver, not only the highest sales of this year but the first month in 2023 that sales were higher than the same time a year earlier and the first time this trend occurred in the last few years. 

The average (not benchmark) home price in May reached $1,315,617, the highest level since April 2022 and up nearly 3 per cent from May of 2022.  

This would all point to a seller’s market, except that, unlike previous months this year, May sales were slightly lower in the second half of the month compared to the previous two-week period to start May. At the same time, new listings increased, rising from 2,909 at mid-month to 5,776 at month’s end, compared to 4,399 in April 2023. May tends to be the most active month of the spring market, so we could see that shift come June. 

In the Fraser Valley, new listings in May, at 3,533, were 42% higher than in April (with detached listings up a startling 61%) while sales increased just 10% month-over-month to 1,711. 

So, as May ended, we were seeing parallel momentums: many more listings and perhaps the peak of sales.

While the last few months have been characterized by multiple offers and increasing prices, we will now see more competition among sellers. It will take many more listings to ease the competition amongst buyers but May was a start.

With the increase in listings comes some great opportunities for buyers. Work with an experienced REALTOR® who can sniff out the right property that’s gone under the radar. This isn’t 2021 when prices went wild. There is now a sense of control, and, for some properties, buyers are not willing to compete or take on the price that sellers are asking. 

Buyers must practice patience now, which is difficult after months of low inventory. We are going to see listings increase, the sales-to-listing ratio settling down and more competitive pricing offered by sellers. In short, hopefully we’ll see some balance come into the market for the first time in three years. 

Of course, all real estate markets are unique, and not all will follow the same trajectory immediately.

There were 9,293 active listings at month end, above the 8,790 at the end of April. Yet some areas had fewer active listings in May than a month earlier, so it’s important to look locally when doing direct comparisons. 

Vancouver East saw a slight uptick in the sales-to-listings ratio while North Vancouver maintained its high rate at 66%. Both locations were called out by the provincial government for not doing enough to supply housing in its recently released list of the municipalities that aren’t building enough homes. Port Moody, on the heels of less sales in May compared to April, saw its absorption rate fall from 91% to 65%.  

Ladner led the way in May with a 108% sales-to-listings ratio as there were more sales than new listings there. Not surprisingly, Delta was also cited by the province for not supplying enough homes. 

Overall Greater Vancouver remains with 3-months’ supply of listings – and with the current number of sales we’d need to double the number of active listings to get into a truly balanced market, but listings are finally increasing.

Best advice to buyers: Work with your trusted REALTOR®, get pre-approved for financing, narrow your search and be ready when your agent finds that ideal property. Do your homework and keep within your budget. 

Best advice to sellers: Prices have risen 1.5% per month this year, but do not expect that to be automatic. A property priced right will attract a slew of potential buyers (it is not uncommon to see 40 people through a weekend open house) but if it is priced above the market or not showhouse ready, buyers now have the option to move on to the next new listings.

A summary of the regional markets: 

Greater Vancouver: A total of 3,411 residential properties sold in May, up 24% from a month earlier and, for the first time this year, higher than in the same month in 2022, when 2,947 transactions were counted. The surge in prices surprised us all, even the Real Estate Board of Greater Vancouver (REBGV). “Back in January, few people would have predicted prices to be up as much as they are – ourselves included,” Andrew Lis, REBGV’s director of economics and data analytics said. “Our forecast projected prices to be up by about 2% at year-end. Instead, home prices are already up about 6% or more across all home types.”

As of May 23, the composite benchmark price was $1,118,000, up 1.3% from a month earlier; the detached house price was up 1.8% to $ $1,953,600. While townhouse prices remained virtually the same as in April, at just over $1 million, condo apartment prices were up 1.1% month to month to $760,800.

Active Listings were at 9,293 at month end compared to 8,790 at the end of April; new listings in May were up 31% compared to April 2023. Month’s supply of total residential listings is steady at 3 month’s supply (seller’s market conditions) and sales to listings ratio of 59% compared to 62% in April 2022 and 45% in May 2022.

Fraser Valley:  Total Valley sales reached 1,711 in May 2023, up 25% from May 2022 and 10% higher than in April 2023. With new listings up 42% from April, there were total active listings of 5,588 at the end of May, 20% higher than a month before. The benchmark composite home price in May was $961,702, up 6.7% from April 2023 and 3% higher than in May 2022. 

Vancouver Westside: Metro’s bellwether housing market saw 624 sales in May, up 33% from a month earlier and 7% higher than in May 2022. The May 2023 benchmark detached house price has increased 5.7% (or $193,000) in the past six months and took another 0.5% step up from April to $3,338,800. Townhouses sold for $1,457,500, down 3% from April, and condo apartments sold in May 2023 at a benchmark of $849,800, up 4.8% over the last three months. Active listings were 2,115 at month end compared to 2,460 at that time last year and 1,992 at the end of April, but new listings in May were up 40% compared to April 2023. With a 3-month supply of total residential listings, the sales-to- listings ratio is a healthy 53% compared to 56% in April 2023 and 46% in May 2022. 

Vancouver East Side: Vancouver is one of the cities named as needing to increase new home starts and it is easy to understand, since East Vancouver, like the Westside, also has just a 3-month supply and a sales-to-listing ratio above 50%. The problem is new homes are more expensive, largely because of government fees and taxes, which have increased sharply. A recent study showed a typical new $840,000 condo apartment in Vancouver includes $327,565 in government costs. An Eastside resale condo had a benchmark price of $707,000 in May, up 1.9% from a month earlier, while townhouses were at $1,109,100, the same as in April, and detached houses sold in May for at a benchmark of $1,822,700, up 2.5% from a month before. Total May sales were 360, up 35% from a month earlier and 13% higher than in May 2022. Active Listings were at 1,006 at month end compared to 1,173 at that time last year and 939 at the end of April. This is a full-on seller’s market.

North Vancouver: Total housing sales in May were 288, up 32% from a month earlier and 3% above May 2022. The composite benchmark home price is $1,397,500, up 5.5% from six months ago and 1.8% higher than in April 2023. While new listings increased 32% from April, total active listings were 514 at the end of May, representing just a 2-months’ supply of housing, with townhouses down to a 1-month inventory. The sales-to-listing ratio has held steady at 66% for two months. The benchmark price for a detached house is now just 4% below May 2022, and, at $2,269.400, the highest level this year.

West Vancouver: The benchmark price of a detached house in West Vancouver in May was nearly unchanged from six months ago, at $3,111,600. Total housing sales, mostly detached houses, were 80 in May, up 16% from April 2023 and 16% higher than in May 2022. With 529 total active listings, there is a 7-month supply in a balanced market where the sales-to-listing ratio is 35%.

Richmond: Two large strata projects in Richmond totaling 1,200 units have been cancelled, the latest the 400-condo Minora Square on May 26, where pre-sale buyer deposits are being refunded. Perhaps a resale condo is a safer bet, since Richmond has also raised new condo development cost charges to around $25 per square foot. In May, a total of 396 homes sold in Richmond, leaving a total inventory of 1,043 properties (a drop from 1,602 at the end of April), or about a 3-month supply, with a 61% sales-to-listing ratio. Prices are rising sharply. The benchmark detached house price is up 7.7% since December 2022, at $2,189,600; and the benchmark condo price in the same period is up 9.6% to $747,00. Townhouse prices are 0.2% higher than a year ago, at $1,119,900.

Burnaby East: Burnaby East saw 39 home sales in May, up from both April 2023 and May 2022 and it now has 90 active listings. With a sales ratio of 57%, the benchmark home price is up 4% since the start of the year, at $1,159,600. This is a seller’s market with just a 2-month supply of homes on the market.

Burnaby North: Burnaby has the most new housing in the works across the region, with a total of 10,630 new strata units envisioned in four massive projects from Brentwood to the Edmonds area, according to an open house May 30 at Burnaby City Hall. All four sites require rezoning. However, Burnaby also wants to increase development fees to help cover the cost of an extended array of infrastructure, including firehalls, RCMP police stations, homeless shelters and “composting and organic processing facilities,” which will add to new strata prices. The new homes are needed. Burnaby North has just a 2-month supply of active listings and they are selling at a pace of 63% per month. The benchmark condo price is now $805,800 and townhouses sell for $902,200, both up about 6% from the first of this year. 

Burnaby South: Total units sold in May were 233, up 8% from a month earlier and 43% higher than in May 2022. The benchmark composite home price is up 5.5% since January 1, at $1,112,300; and detached house prices are up 8% in the same period to $2,177,100, the highest in Burnaby. New listings in May were up 20% compared to April 2023 but down 7% compared to May 2022. The supply of total residential listings, at 404, is steady at a 2 month’s supply (seller’s market conditions) with a sales-to-listings ratio of 73%. 

New Westminster: The benchmark price for a detached house in the Royal City was $1,525,800 in May, up 5% from the start of 2023, but the overall composite price remains among the lowest in Metro, at $827,600. A total of 142 residential properties sold in May, 26% higher than a month earlier and up 27% from May 2022.  Active Listings were at 258 at month end compared to 313 at that time last year and 238 at the end of April. This is about a 2-month supply as the sales-to-new-listing ratio has been running at 70% in both May and April. 

Coquitlam: Total May sales reached 284, up 35% from April 2023 and 16% higher compared to May 2022. Active Listings were at 555 at month end compared to 642 at that time last year and 495 at the end of April; new listings in May were up 38% compared to April 2023, perhaps because sellers see what is happening. The benchmark home price has increased 4.7% so far this year to $1,114,900 and the sales-to-listing ratio has been over 60% for four months. This is a strong seller’s market.

Port Moody: This Tri-City community has a history of slow development, and it is on the list of cities where the province wants to see more housing starts. Port Moody now charges $33,453 per detached or duplex lot in development fees and tacks from $11 to $14 per square onto new strata units, so that will add to new home prices. Right now there is just a 2-month supply with only 184 active listings. Benchmark home prices are still 9% below May 2022, at $1,112,300. The sales to listing ratio, though, was 65% in May and 91% in April, so supply could disappear quickly. 

Port Coquitlam: Total units sold in May were 91, up from 76 in April 2023 and the very same at in May 2022, but the composite benchmark home price is down 6.9% year-over-year, at $951,800. Detached houses were benchmarked in May at $1,392,100, up 8.5% from January 1, but still 8% lower than a year ago. While new listings in May were up 89% from April 2023, there are only 153 active listings, enough to last about two months, with a sales-to-listing ratio running at 62%.

Pitt Meadows: Just 30 homes sold in May, but that was 44% better than April 2023 and higher than the 28 sales in May 2022. Detached home prices, while lower than last year, have soared 10% from the start of this year to a 2023 high of $1,274,800 in May. Active Listings were at 71 at month end compared to 84 at that time last year and at the end of April; New Listings in May were down 17% compared to April 2023 and the hot sales-to-listings ratio of 86% shows the current supply may not last long.

Maple Ridge: With 218 sales in May, total transactions were up 35% from a month earlier and 23% higher than in May 2022. The benchmark detached house price has increased 7.6% over the past three months to $1,261,700, with townhouse prices up to $768,100 after a 2.4% increase from a month earlier. The post-COVID slump in Maple Ridge appears over, with a sales-to-listing ratio in May of 63% and 62% in April in what has become a seller’s market with 539 active listings available.

Ladner: Delta is another of the Metro region cities called out by the province for not building enough new homes. Ladner, for example, only has 85 active listings (down from 100 at the end of April) and the May sales-to-new-listing ratio was 108% and new listings were down 14% from April 2023, while sales increased 26% to 54 transactions. The benchmark home price in Ladner is up 7.2% since the start of the year, at $1,144,200. There were more strata sales than new listings in May, which saw townhouse benchmark prices rise 10.4% so far this year to $973,800. Condo benchmark prices are at $704,800 in May, up less than 2% since January, however. 

Tsawwassen: Total units sold in May were 62 up 15% compared to April 2023, up 44% higher than in May 2022. Active listings were steady at 166 at month end compared to 165 at that time last year and 167 at the end of April; New Listings in May were up 23% compared to April 2023. Total residential listings are at a 3 month’s supply (seller’s market conditions) and the sales to listings ratio of 68% compares to 73% in April 2023. The benchmark home price in May was $1,221,900, up 5.6% from the first of this year but nearly 9% below the price in May 2022. Townhouse sales are particularly slow and the benchmark price of a townhouse, at $1,005,700 in May, has barely budged in two months.

Surrey: B.C.’s second-biggest city saw 855 total sales in May, almost evenly divided among detached, townhouse and condo properties, but there the similarity ends. Detached sales, at 284, were up 44% from a year earlier and 11.4% from April 2023. The average detached price was $1,784,000 in May, up 8% from a month earlier. There were 246 townhouse sales, up 8% from a year earlier and 14% higher than a month earlier, while the average townhouse price was up just 0.3% from April 2023 to $878,396. Condo apartment sales, at 225, were up 1.8% year to year, and 1% month to month, while the average price was up 3.3% from last year and 6.6% from April 2023, at $560,180.

While the temperature outside has heated up, so has the real estate market. Month by month so far in 2023, the number of sales per month has continued to surpass the month before.

And now with a noticeable increase in the number of new listings in May, sales are growing at a quicker pace, and we are likely to see the number of sales in Greater Vancouver surpass 3,000 for the first time since April 2022. And with that, the number of new listings is on pace to be the highest by month in the region since May of last year. It appears that sellers are taking notice of what their neighbours are now able to sell at as a result of the number of buyers chasing those too few listings and therefore are deciding to jump into the new listings pool. As we said over the last few months, if there were more listings, there would be more sales. And that’s exactly what we are seeing in May. Although with absorption rates increasing still, the stockpile of active listings is only slowly growing, which will keep Greater Vancouver in seller’s market territory. 

At the mid-point of May, there have been 1,759 sales in Greater Vancouver, much more than the 1,227 sales at the mid-point of April and the 1,184 that sold at the mid-point of March. And we’ve finally swung to the other side with there being more sales year over year for the first time since 2021. This will likely be the highest number of sales in a month since March 2022 and if the market continues to accelerate, the highest number of sales since mid-2021.
 

The shift in the market that started in January has fully taken hold. No longer can we compare this market to 2019, it’s taken a life of its own and one that seems to be showing buyers eager to purchase real estate and sellers to trade into a different property. Multiple offers continue to be more common than not. 

At mid-month in Greater Vancouver there have been 2,909 new listings so far, compared with 2,182 new listings at the mid-point of April which was just slightly above the 2,154 new listings at the mid-point of March. And while the amount of sales year over year was higher, the anticipation of the number of new listings being higher year over year didn’t happen. Last year in May at the mid-point, there were 3,210 new listings which took us to 6,491 for the month of May. While this May will be the first time, we see over 5,000 new listings in a month since last June, we won’t be at the lofty highs we were early last year and in 2021. But it is a significant improve on the lack of listings we’ve seen so far this year. Hopefully that carries into the next few months to provide some much-needed supply to the pace of buying that is currently happening.  And even if we compared to 2019 when the market was much slower, there were 3,181 new listings at the mid-point in May that year, more than what we are seeing this May. 

Some interesting side notes so far this month. Overall, Greater Vancouver, absorption rates are sitting at the highest the have been since early 2022 and 2021. Even with an increase in the number of new listings, there is a 60% sales-to-listings ratio so far in May. As we move through May we’ll see the active listing count finish above 9,000 for the first time this year, a month later than it took to get to that number last year when 2022 started with over 2,000 less listings.
 

To say buyers have been listing starved this year is an understatement. Vancouver West and East side both have one of the lowest absorption rates in the region, other than the perennially low West Vancouver – although at 50% and 55% for Vancouver West and East respectively this is keeping both areas in seller’s market conditions still.

Ladner and Tsawwassen have two of the strongest absorption rates at 121% and 83% respectively. Looking at Ladner, there have been 11 townhouse sales on 5 new listings and 7 condo sales on 5 new listings. Detached and townhouses are seeing strong competition amongst buyers in many areas, and detached homes are picking up steam in the market.  

So, while we are seeing some gradual growth in listings, it’s likely going to continue to be a seller’s market for most of the region as we move into summer. Unless we see significant listing activity, that will likely remain. With today’s inflation numbers showing a slight reversal from the decreases we’ve seen; the Bank of Canada will have a decision to make at their next meeting in June. Raise or not to raise. Although with increased mortgaged costs part of what’s driving inflation numbers, it’s hard to imagine how increasing interest rates will help and likely lead to the status quo. 
 

Here’s a summary of the numbers:

Greater Vancouver 

1,759 units sold so far in May 2023 compared to 
1,227 units sold at mid-month in April 2023 
1,184 units sold at mid-month in March 2023 
1,381 units sold at mid-month in May 2022
2,183 units sold at mid-month in May 2021
686 units sold at mid-month in May 2020
1,148 units sold at mid-month in May 2019

2,909 new listings so far in May compared to
2,182 new listings at mid-month in April 2023
2,154 new listings at mid-month in March 2023
3,210 new listings at mid-month in May 2022
3,758 new listings at mid-month in May 2021
1,851 new listings at mid-month in May 2020
3,181 new listings at mid-month in May 2019

Total active listings are at 8,963 compared to 9,770 at mid-month in May 2022, and 8,778 at mid-month in April 2023.

Sales to listings ratio is at 60% compared to 43% at mid-month in May 2022 and 56% at mid-month in April 2023.

Vancouver West 

305 units sold so far in May 2023 compared to 
215 units sold at mid-month in April 2023 
211 units sold at mid-month in March 2023 
271 units sold at mid-month in May 2022
372 units sold at mid-month in May 2021
117 units sold at mid-month in May 2020
207 units sold at mid-month in May 2019

613 new listings so far in May compared to
420 new listings at mid-month in April 2023
467 new listings at mid-month in March 2023
619 new listings at mid-month in May 2022
775 new listings at mid-month in May 2021
371 new listings at mid-month in May 2020
567 new listings at mid-month in May 2019

Total active listings are at 2,056 compared to 2,386 at mid-month in May 2022, and 1,988 at
mid-month in April 2023.

Sales to listings ratio is at 50% compared to 43% at mid-month in May 2022 and 51% at mid-month in April 2023.

Vancouver East

185 units sold so far in May 2023 compared to 
111 units sold at mid-month in April 2023 
127 units sold at mid-month in March 2023 
149 units sold at mid-month in May 2022
241 units sold at mid-month in May 2021
77 units sold at mid-month in May 2020
131 units sold at mid-month in May 2019

335 new listings so far in May compared to
251 new listings at mid-month in April 2023
223 new listings at mid-month in March 2023
346 new listings at mid-month in May 2022
423 new listings at mid-month in May 2021
175 new listings at mid-month in May 2020
305 new listings at mid-month in May 2019

Total active listings are at 968 compared to 1,128 at mid-month in May 2022, and 940 at mid-month in April 2023.

Sales to listings ratio is at 55% compared to 43% at mid-month in May 2022 and 44% at mid-month in April 2023.

North Vancouver

147 units sold so far in May 2023 compared to 
90 units sold at mid-month in April 2023 
108 units sold at mid-month in March 2023 
127 units sold at mid-month in May 2022
177 units sold at mid-month in May 2021
55 units sold at mid-month in May 2020
112 units sold at mid-month in May 2019

227 new listings so far in May compared to
153 new listings at mid-month in April 2023
180 new listings at mid-month in March 2023
241 new listings at mid-month in May 2022
285 new listings at mid-month in May 2021
147 new listings at mid-month in May 2020
264 new listings at mid-month in May 2019

Total active listings are at 508 compared to 519 at mid-month in May 2022, and 496 at mid-month in April 2023.

Sales to listings ratio is at 65% compared to 53% at mid-month in May 2022 and 59% at mid-month in April 2023.

West Vancouver 

45 units sold so far in May 2023 compared to 
34 units sold at mid-month in April 2023 
29 units sold at mid-month in March 2023 
38 units sold at mid-month in May 2022
55 units sold at mid-month in May 2021
19 units sold at mid-month in May 2020
30 units sold at mid-month in May 2019

116 new listings so far in May compared to
94 new listings at mid-month in April 2023
77 new listings at mid-month in March 2023
122 new listings at mid-month in May 2022
127 new listings at mid-month in May 2021
84 new listings at mid-month in May 2020
130 new listings at mid-month in May 2019

Total active listings are at 502 compared to 533 at mid-month in May 2022, and 475 at mid-month in April 2023.

Sales to listings ratio is at 39% compared to 31% at mid-month in May 2022 and 36% at mid-month in April 2023.

Richmond

204 units sold so far in May 2023 compared to 
153 units sold at mid-month in April 2023 
163 units sold at mid-month in March 2023 
153 units sold at mid-month in May 2022
248 units sold at mid-month in May 2021
72 units sold at mid-month in May 2020
120 units sold at mid-month in May 2019

322 new listings so far in May compared to
261 new listings at mid-month in April 2023
264 new listings at mid-month in March 2023
373 new listings at mid-month in May 2022
430 new listings at mid-month in May 2021
207 new listings at mid-month in May 2020
400 new listings at mid-month in May 2019

Total active listings are at 1,088 compared to 1,244 at mid-month in May 2022, and 1,080 at mid-month in April 2023.

Sales to listings ratio is at 63% compared to 41% at mid-month in May 2022 and 59% at mid-month in April 2023.

Burnaby East 

22 units sold so far in May 2023 compared to 
19 units sold at mid-month in April 2023 
10 units sold at mid-month in March 2023 
16 units sold at mid-month in May 2022
26 units sold at mid-month in May 2021
11 units sold at mid-month in May 2020
10 units sold at mid-month in May 2019

29 new listings so far in May compared to
18 new listings at mid-month in April 2023
22 new listings at mid-month in March 2023
29 new listings at mid-month in May 2022
36 new listings at mid-month in May 2021
17 new listings at mid-month in May 2020
25 new listings at mid-month in May 2019

Total active listings are at 74 compared to 74 at mid-month in May 2022, and 77 at mid-month in April 2023.

Sales to listings ratio is at 76% compared to 55% at mid-month in May 2022 and 106% at mid-month in April 2023.

Burnaby North 

94 units sold so far in May 2023 compared to 
77 units sold at mid-month in April 2023 
80 units sold at mid-month in March 2023 
95 units sold at mid-month in May 2022
122 units sold at mid-month in May 2021
43 units sold at mid-month in May 2020
56 units sold at mid-month in May 2019

157 new listings so far in May compared to
129 new listings at mid-month in April 2023
110 new listings at mid-month in March 2023
166 new listings at mid-month in May 2022
211 new listings at mid-month in May 2021
56 new listings at mid-month in May 2020
158 new listings at mid-month in May 2019

Total active listings are at 434 compared to 431 at mid-month in May 2022, and 412 at mid-month in April 2023.

Sales to listings ratio is at 60% compared to 57% at mid-month in May 2022 and 60% at mid-month in April 2023.

Burnaby South 

118 units sold so far in May 2023 compared to 
101 units sold at mid-month in April 2023 
60 units sold at mid-month in March 2023 
79 units sold at mid-month in May 2022
121 units sold at mid-month in May 2021
34 units sold at mid-month in May 2020
34 units sold at mid-month in May 2019

170 new listings so far in May compared to
125 new listings at mid-month in April 2023
101 new listings at mid-month in March 2023
141 new listings at mid-month in May 2022
212 new listings at mid-month in May 2021
65 new listings at mid-month in May 2020
170 new listings at mid-month in May 2019

Total active listings are at 396 compared to 487 at mid-month in May 2022, and 390 at mid-month in April 2023.

Sales to listings ratio is at 69% compared to 56% at mid-month in May 2022 and 81% at mid-month in April 2023.

New Westminster 

75 units sold so far in May 2023 compared to 
54 units sold at mid-month in April 2023 
43 units sold at mid-month in March 2023 
56 units sold at mid-month in May 2022
212 units sold at mid-month in May 2021
65 units sold at mid-month in May 2020
170 units sold at mid-month in May 2019

101 new listings so far in May compared to
80 new listings at mid-month in April 2023
77 new listings at mid-month in March 2023
135 new listings at mid-month in May 2022
146 new listings at mid-month in May 2021
71 new listings at mid-month in May 2020
145 new listings at mid-month in May 2019

Total active listings are at 237 compared to 296 at mid-month in May 2022, and 235 at mid-month in April 2023.

Sales to listings ratio is at 74% compared to 41% at mid-month in May 2022 and 68% at mid-month in April 2023.

Coquitlam 

164 units sold so far in May 2023 compared to 
90 units sold at mid-month in April 2023 
97 units sold at mid-month in March 2023 
111 units sold at mid-month in May 2022
173 units sold at mid-month in May 2021
44 units sold at mid-month in May 2020
88 units sold at mid-month in May 2019

226 new listings so far in May compared to
180 new listings at mid-month in April 2023
152 new listings at mid-month in March 2023
218 new listings at mid-month in May 2022
306 new listings at mid-month in May 2021
192 new listings at mid-month in May 2020
281 new listings at mid-month in May 2019

Total active listings are at 502 compared to 609 at mid-month in May 2022, and 506 at mid-month in April 2023.

Sales to listings ratio is at 73% compared to 51% at mid-month in May 2022 and 50% at mid-month in April 2023.

Port Moody

47 units sold so far in May 2023 compared to 
54 units sold at mid-month in April 2023 
37 units sold at mid-month in March 2023 
25 units sold at mid-month in May 2022
52 units sold at mid-month in May 2021
24 units sold at mid-month in May 2020
26 units sold at mid-month in May 2019

66 new listings so far in May compared to
49 new listings at mid-month in April 2023
50 new listings at mid-month in March 2023
61 new listings at mid-month in May 2022
93 new listings at mid-month in May 2021
36 new listings at mid-month in May 2020
63 new listings at mid-month in May 2019

Total active listings are at 167 compared to 162 at mid-month in May 2022, and 163 at mid-month in April 2023.

Sales to listings ratio is at 71% compared to 41% at mid-month in May 2022 and 110% at mid-month in April 2023.

Port Coquitlam 

48 units sold so far in May 2023 compared to 
35 units sold at mid-month in April 2023 
28 units sold at mid-month in March 2023 
44 units sold at mid-month in May 2022
82 units sold at mid-month in May 2021
26 units sold at mid-month in May 2020
54 units sold at mid-month in May 2019

72 new listings so far in May compared to
52 new listings at mid-month in April 2023
57 new listings at mid-month in March 2023
99 new listings at mid-month in May 2022
120 new listings at mid-month in May 2021
47 new listings at mid-month in May 2020
98 new listings at mid-month in May 2019

Total active listings are at 138 compared to 199 at mid-month in May 2022, and 159 at mid-month in April 2023.

Sales to listings ratio is at 67% compared to 44% at mid-month in May 2022 and 67% at mid-month in April 2023.

Ladner 

35 units sold so far in May 2023 compared to 
16 units sold at mid-month in April 2023 
23 units sold at mid-month in March 2023 
14 units sold at mid-month in May 2022
25 units sold at mid-month in May 2021
8 units sold at mid-month in May 2020
16 units sold at mid-month in May 2019
29 new listings so far in May compared to
27 new listings at mid-month in April 2023
20 new listings at mid-month in March 2023
24 new listings at mid-month in May 2022
38 new listings at mid-month in May 2021
18 new listings at mid-month in May 2020
35 new listings at mid-month in May 2019

Total active listings are at 87 compared to 91 at mid-month in May 2022, and 102 at mid-month in April 2023.

Sales to listings ratio is at 121% compared to 58% at mid-month in May 2022 and 59% at mid-month in April 2023.

Tsawwassen

33 units sold so far in May 2023 compared to 
17 units sold at mid-month in April 2023 
13 units sold at mid-month in March 2023 
19 units sold at mid-month in May 2022
49 units sold at mid-month in May 2021
24 units sold at mid-month in May 2020
17 units sold at mid-month in May 2019

40 new listings so far in May compared to
38 new listings at mid-month in April 2023
38 new listings at mid-month in March 2023
56 new listings at mid-month in May 2022
72 new listings at mid-month in May 2021
39 new listings at mid-month in May 2020
54 new listings at mid-month in May 2019

Total active listings are at 151 compared to 157 at mid-month in May 2022, and 177 at mid-month in April 2023.

Sales to listings ratio is at 83% compared to 34% at mid-month in May 2022 and 45% at mid-month in April 2023.

Highlights of Dexter Realty’s February 2023 Report 

• Prices increased month-over-month for the first time since May 2022

• Housing sales are up 77% from January; new listings are up just 5%.

• Multiple offers are being seen on Westside detached houses. 

• Top townhouse market: New Westminster. 

• Undersupplied North Vancouver is now a seller’s market.

The last three years have been an anomaly for housing markets around the world and Greater Vancouver is no exception. That is why it is virtually useless to compare our current, back-to-reality environment with what was happening a year or two years ago during a once-in-a-century event.

In 2021, we were in the grip of a global pandemic and a home-buying frenzy with mortgage rates at record lows. In February 2022, housing sales and prices hit a white-hot peak just before the federal government hosed it down with the first of eight straight interest rate increases through the Bank of Canada.

Today, in February 2023, the panic buying is history, mortgage rates have stabilized, and buyers are back into the first normal housing market in four years. Driven by buyer demand and low supply, February marked the first month-to-month home price increase in nine months

Greater Vancouver housing sales, at 1,824 transactions in February, were up 77% from January 2023 and 21% higher than in February 2019, before the whole pandemic-influenced housing boom-and-bust began. February sales were also higher than in November and December 2022, and, we believe, signal the start of a strong spring selling season.

Buyers are already competing with other buyers for far fewer listings. The number of new listings in February was the lowest for that month going back to pre-1991, much the same as it was in January. Compared to January 2023, listings were only up 5%. 

But, since sales have been slower over the past 10 months, a total of 8,283 homes were on the market at the of February, above the 7,862 active listings at the end of January and a few hundred more than in December 2022. 

With buyers flowing back into the market, immigration hitting record levels and interest rates settling down, this appears a prime time to encourage housing starts. However, governments at all levels appear to be doing their best to stunt new home construction.

• The federal government has banned foreign buyers for two years, including those investing in residential land, if the developer has less than 97% Canadian ownership. For example, a 3,000-unit Burnaby residential development, now under construction, would not be allowed today because the developer is based out of London, England. The recent collapse of major condo developers in Metro Vancouver could be traced to the ban’s impact on companies with as little as a 3% foreign ownership. This has put thousands of new homes at risk.
   

• The B.C. government is spending $500 million to stop or stall the private redevelopment of 50 and 60-year-old rental buildings into modern, higher-density housing projects.
   

• Metro municipalities are jacking up development cost charges, even as housing starts fall. Among the examples is Richmond, where housing starts so far in 2023 total just 73 units, down 80% from the 381 starts at the same time a year ago. Richmond is raising DCC rates on single-family lots by $20,000 to $61,138, and raising the DCC rate for condo apartments and townhouses by 43% to more than $34 per square foot. This means that a modest new townhouse of 1,200 square feet will now cost about $41,000 just in city development fees. 

All governments preach about addressing the supply of ‘missing middle’ housing for families, which translates as townhouses. Yet only 3 townhouse units have started so far this year in the City of Vancouver, compared to just 21 units a year ago at this time – and a mere 90 townhouse units were started in all of 2022 across Metro Vancouver.

For residential investors, the consistent housing shortage is a blessing, which is why Metro Vancouver has become a “buy and hold” housing environment. Owners know that the law of supply and demand ensures that home prices will keep increasing. So they wait it out. In markets where sales levels are declining, an increase in new listings would add to the active listing count and provide downward pressure on prices. 

That’s not the Metro Vancouver market, where sales are turning back up.

Any increase in new listings will be absorbed by buyers. With the level of competition we are now seeing in the market, buyers are craving listings and competing for different product types in different areas. Active listing counts are up about 500 since the end of December. Absorption rates today are twice what they were in a similar market in 2019, and are only held in check by the lack of homes on the market.

The bottom line: Greater Vancouver listings are scarce at a time when they should be double what they are. 

Prior to 2015, having 15,000 to 20,000 active listings in Greater Vancouver was the norm. Since then, we’ve barely scratched above 15,000 and right now we are at half that level. Restrictive zoning and slow-moving development approvals continue to barricade supply. And without that supply, a seller’s markets will continue, at whatever level of demand we have in the market. 

A look at the Regional housing numbers: 

Greater Vancouver: Total housing sales were up 77% compared to January 2023, while new listings were up 5%. The result was the composite benchmark home price posted the first month-over-month increase since May of 2022, rising 1.1% to $1,123,400. Detached house prices rose 0.7%, to $1,813,000; condo apartment prices rose 1.6% to $732,200; and townhouse benchmark prices were up 1.8%, compared to a month earlier, to $1,038,500. Active Listings were at 8,283 at month-end compared to 7,062 at that time last year and 7,862 at the end of January. Greater Vancouver’s detached housing market is now seen as a balanced market, with both condo apartments and townhouses in a seller’s market. The total sales-to-new-listing ratio in February was 51%, compared to 30% in January 2023 and 62% in February 2022.

Fraser Valley: The Fraser Valley Real Estate Board processed 898 sales in February, an increase of 43.5% over January 2023, but still only half as many as were recorded a year ago. February new listings were up by 5.7% over January 2023 to 1,938 but 48.25% lower than in February 2023. Active listings were up 7% from a month earlier. The composite benchmark home price in February was $946,700 up 0.5%  from January 2023 and the first month-over-month increase since April 2022. Further, the benchmark price is 36% higher than in pre-pandemic February 2020. 

Vancouver Westside: February total sales, at 316, were up 63% from January 2023 and would have been even higher if more listings were available. One Westside house had 16 offers on it at the end of February, an indication of the demand. New listings were down 1% from January, but active listings as of month end were at 1,923, representing about a six-month supply. The sales-to-new-listing ratio is running at 44%, up from 27% a month earlier. There is a severe shortage of townhouses, with nearly half the 91 new listings selling in February at a median price of more than $1.48 million. No new townhouses have started construction this year on the Westside. The February benchmark price for a detached house on the Westside jumped 2.7% from a month earlier, to $3,103,100.

Vancouver East Side: Total housing sales in February, at 198, were up 68% from January 2023, but new listings were up by only 6%, while the sales-to-new-listing ratio reached a balanced 52%, up from 33% in January, and close to 55% ratio in the hot market a year ago. This is a market to watch. Benchmark prices were up in all sectors from a month earlier, led by a 2.9% surge in townhouse prices to $1,052,500. The supply of total residential listings is down to five months supply, with condos in seller’s market conditions. Benchmark condo prices were up 1% from January, to $683,600, based on 101 sales, double the number a month earlier.

North Vancouver: This perpetually under supplied market is a seller’s market with only a three-months supply of listings, even with growth in active listings of townhouses and condos. A total of 150 sales were seen in February, up 83% from a month earlier, but active listings were just 20 homes higher, at 436 units. With the sales-to-listing ratio at 59%, townhouse prices shot up 4.1% from January 2023, to $1,286200, and detached and condo benchmark prices were up nearly 2% from a month earlier.

West Vancouver: Sales increased 54%, month over month to 43 transactions, but because of a 21% spike in new listings, there is now a 10-month supply of homes, in this buyer’s market for detached houses. It remains a seller’s market for townhomes, because the supply is so low, perhaps one reason West Vancouver’s population is declining. West Van posted a modest decline in most prices compared to January, except for condo apartments, which were up 2.7% to a region-leading $1,228,900.

Richmond: Despite the angst in Richmond’s strata market – where an 800-unit development has gone into receivership and starts have plunged 80% from a year ago, total sales in February were up 89% from January. The benchmark composite home prices rose 2% from a month earlier with condos selling for $735,800; townhouses at $1,083,100; and detached houses at just over $2 million. With an overall sales-to-listing ratio of nearly 50%, the detached-house market is in balanced conditions, with a seller’s market building steam in the strata sector. 

Burnaby East: Total sales in February were 21, up 133% from a month earlier and the sales-to-listing ratio hit a stunning 105%, compared to a low of 20% in January 2023 and 52% in February of last year. This is a seller’s market on steroids with the composite benchmark price up 2.2% month-over-month to $1,102,900, the highest in Burnaby.

Burnaby North: With total sales up 113% from January 2023, to 134, and total active listings down 10%, this is also a seller’s market with a mere three-month supply of listings and a sales ratio of 66%. The saving grace is the high number of new condos coming to the market in the Brentwood-Gilmore area. The composite home price was up from January, led by a 2.4% surge in townhouse prices to $892,100.

Burnaby South: Many Burnaby buyers were southbound in February, driving total sales up 119% from a month earlier, to 118 transactions. Active listings were 377 at month end compared to 352 at the end of January, which translates to a three-month supply at the current sales pace. The composite benchmark price was up nearly 1% from January at $966,500. The sales-to-listing ratio is a healthy 57% with the strata sector in seller’s market conditions.

New Westminster: For buyers looking for scarce townhouses, the Royal City has a good selection. Only 3 townhouses sold in February and there is nine-month supply on the market. Benchmark townhouse prices, however, increased 4.4% from January 2023, to $932,200, the same price as in February 2023. Total housing sales in February were 65% higher than a month earlier, at 66, at new listings inched up by 1%. The overall sales-to-listing ratio is 62%, up from 38% in January 2023 with a buyer’s market for townhouse and condos and a balanced market for detached houses, where prices are up 2.4% or about $34,000 – from a month earlier at $1,418,100.

Coquitlam: It seems hard to understand with the amount of new multi-family construction over the past two years, but Coquitlam is seeing a shortage of strata homes. Coquitlam had one of the biggest turnarounds in February with sales up 116% compared to January. Townhouse sales went from 4 in January to 40 in February. With that, there is just a two-months of inventory for townhouses and condos. The composite benchmark price is up 0.7% from a month earlier, but townhouse prices rose 2.5% from January to $999,900. With an overall sales-to-listing ratio of 67%, this is a seller’s market for strata units and balanced in the detached sector.

Port Moody: Even with total listings of 200 at the end of February, and a significant increase in townhouse and condo listings, strata units are in a seller’s market, along with detached houses. There were more sales than new listings compared to January, with a 104% sales increase from the month previous, to 47 transactions while only 91 new listings in February compared to 103 in January. More than half (52%) of the new listings sold in February, while the composite benchmark price increased 1% to $1,093,100, the highest in the Tri-Cities. 

Port Coquitlam: There is only a one-month supply of townhouses with twice as many sales as new listings in February. Total housing sales reached 40, up a modest 18% from January 2023. The total supply of residential listings is down to four months, meaning a balanced market conditions for detached houses, with townhouses and condos in seller’s market conditions. The overall sales-to-listing ratio is a healthy 46% and the composite benchmark price has held steady (up 0.7%) for three months at $900,900.

Pitt Meadows: Sales didn’t budge month-over-month, with 15 transactions in February, while new listings fell 29% compared to January 2023. The total inventory remains at a four-month supply in this balanced market, with a sales-to-listing ratio of 55%. The composite benchmark home price fell 0.6% from January to $825,900.

Maple Ridge: Total housing sales in February were up 98% from January 2023 to 129 transactions, but new listings were down 4% from a month earlier. With a sales-to-listing ratio of 62%, the same as in February of last year and up from 30% in January 2023, this is a sellers’ market with just four months of inventory. Still, Maple Ridge plans to increase development cost charges this year to $41,000 for a new detached house, up from $22,465, and raise per-square-foot fees for new condo and townhouse units by 80%. The composite benchmark home price in February was up about 1% from January, at $918,300, but townhouse prices rose 3.5%, month over month, to $723,600.

Ladner: The townhouses market saw significant increases in sales and listings accounting for as many sales in February as detached and condos combined. Still, the total market was fairly brisk, with 27 transactions, up 69% from a month earlier and higher even than in February of last year. Townhouse prices spiked up 6.7% from January 2023 tied as the highest increase in Metro Vancouver – to $988,600. New listings were up 42% from a month earlier and there were 98 active listings as February ended. With a sales-to-listing ratio of 44%, this is a balanced market slanting towards a seller’s advantage for townhouses and condos.

Tsawwassen: Detached house listings were down 41% compared to January, while condos remain with a three-month supply. Detached houses and townhouses are in a balanced market. Total sales were rather tepid, at 25 transactions compared with 20 in January 2023 and 73 in February 2022. Perhaps buyers are tired of the back-and-forth Massey Tunnel replacement plan that doesn’t seem to ever get off (or under) the ground. This was noticeably absent from the recent provincial budget announcement and its three-year infrastructure plans. Despite a sales ratio of 47%, the composite benchmark price was down 3.7%, month-over-month, to $1,112,800, led by a sharp 7% drop in detached house prices.

Surrey: Benchmark home prices in Surrey were higher than in January, the first month-over-month increase since April of 2022. Detached house prices were up 0.7% to $1,503,200; townhouse prices rose 1% to $ $ 803,100 and condo apartment benchmark prices were up 1.4% to $522,700. The outlier is South Surrey-White Rock’s detached market, where prices slipped down 1.4% from January to $1,776,300, still the highest price in the Fraser Valley. With total Surrey sales up 61% from January 2023, at 132 transactions, and new listings up less than 15%, Surrey is considered a balanced market.

Kevin Skipworth
Partner/Broker and Chief Economist at Dexter Realty

January 2023 signalled early that it would end with what the Real Estate Board of Greater Vancouver says is “among the lowest sales month in recent history.”

As of mid-month, total transactions had reached just 334 properties, well below the 795 in mid-December 2022 or the 778 in mid-January 2022. The slow sales reflected not only higher mortgage rates but a barrage of anti-demand government policies that started the New Year.

Having dealt with a City of Vancouver Empty Homes Tax, the provincial Speculation and Vacancy Tax and a provincial foreign buyer’s tax, effective January 1, we now have a provincial three-day Home Buyer Rescission Period (or ‘cooling-off’ period), a two-year ban on foreign buyers across Canada, a national Underused Homes Tax – essentially a Canada wide empty-homes tax for foreign owned properties – and a national anti-flipping tax which would see any profits for sales within a year of purchase taxed as business income. And of course, Canada’s prime lending rate has doubled from a year earlier, due to eight straight Bank of Canada increases.

It is wonder all this didn’t kill home buying all together. Yet a close look at Metro Vancouver shows flashes of high-performing regional markets in January and evidence that, despite misplaced and heavy-handed government policies, many people remain eager to purchase.

January ended with 1,030 properties sold of all types across Greater Vancouver, meaning sales more than doubled in the past two weeks of the month compared to the first half. As well, new listings increased from 1,379 in the first two weeks of January to end with 3,384, but this was still the lowest number of new listings for a January going back to before 1991 – more than thirty years ago.

This speaks to the one thing keeping prices from declining more than they have. Sellers are not desperate. There is a lot of equity in owning a home and that keeps buyers from going into the market and from sellers rushing to get out. Since the start of the pandemic three years ago, the composite home price in Greater Vancouver has increased by 26%, or about $286,000. The typical detached house is now worth $411,000 more than in January 2020, at a January 2023 benchmark of $1,801,300. 

If there is one prediction that could be made about this market, it’s that listings will not be coming in abundance. 

Despite all the government rhetoric about creating more housing, policies are failing to address the underlying lack of supply. In 2022, for instance, total non-rental housing starts in Metro Vancouver fell 18% from a year earlier to just 16,116 units. And, despite a year-over-year increase in rental construction, Metro Vancouver rents are now the highest in history and the most expensive in Canada.

In some markets, the low inventory sparked bidding wars in January and turned key suburban municipalities into seller’s markets as tenants aimed to move into ownership and owners tried to improve their housing. 

Here are some markets bucking the downward sales trend:

• A Richmond condo listing attracted 11 offers in January as the local condo market moved from a balanced to a seller’s advantage.
   

• In North Vancouver, townhomes and condos are in a seller’s market with January townhouse sales at similar levels to January 2022.
   

• The strata sector was in seller’s market conditions in North Burnaby, New Westminster and even Coquitlam, despite a multi-family building boom in all three cities.
   

• In 12 of the 22 Greater Vancouver markets, townhouse prices increased from December 2022 to January 2023 and were up an average of 0.8% across the entire region to $1,020,400, while benchmark condo apartment prices rose 1% month-over-month to $720,700.

These are not the signs of a distressed housing market – there are instead signals that buyers, confident that interest rate hikes have ended for now, are willing to come back into the market. If there were more listings, there would be more sales. It is as simple as that.

And listings of resale housing are starting to increase. The total number of homes currently listed for sale in the Greater Vancouver is 7,478, a 32.1% increase compared to January 2022 and 1.3% higher compared to December 2022. 

All predictions are that 2024 will see improved housing sales and ascending prices. This is the year for buyers to position themselves for that recovery in a still vibrant housing environment with upside potential. In fact, we believe 2023 will be a much stronger market than most pundits are predicting.

Despite headwinds through 2023, there is far too much demand to keep this real estate market from doing anything but grow.

Summary of Greater Vancouver markets in January 2023

Greater Vancouver: With total housing sales down 56% this January compared to January 2022, the January 2023 composite home price was 6.6% lower year-over-year and a mere 0.3% lower than in December 2022, to $1,111,400. Total active Listings were 7,862 at month-end compared to 5,987 at that time last year and 7,791 at the end of December, while new listings in January 2023 were up an expected 173% compared to December 2022. For all property types, the sales-to-listings ratio for January 2023 was 30%. By property type, the ratio is 28% for detached homes, 28% for townhomes, and 33% for apartments. With 571 transactions in the month, condos accounted for more than half of all sales in January, with townhouse sales at 156 and detached house transactions at 295. With an 8-month supply of inventory, this is overall a buyer’s market that is gaining strength. 

Fraser Valley: With 626 transactions in January 2023, housing sales were off 12.6% compared to December 2022 and down by 52.2% compared to January 2022 to the lowest level in 10 years. The Fraser Valley Real Estate Board reports that “pent-up demand that has been building since the last quarter of 2022 will likely give rise to a sales uptick, especially if rate hikes subside, which we expect will be the case.” New listings saw an increase of 128.3% over December 2022 to 1,833 but remain at the lowest level for January since 1984. Active listings rose 5% to 4,118 compared to December 2022 and were up 76.6% compared to January 2022. At $942,200, the composite benchmark home price edged down 1.4% from December and was off 15% compared to January 2022.

Vancouver Westside: Total sales in January were 194, down 56% from the same month a year earlier and 20% below December 2022. New listings were up 196% compared to December but 29% lower than a year ago. There are less detached homes for sale than at this time last year, but this may change. In January, the City of Vancouver introduced Adding Missing Middle Housing and Simplifying Regulations in Low Density Neighbourhoods, which would see the opportunity to develop multi-unit housing in single-detached RS zones throughout the city. The proposed changes allow up to four units on a typical 33-foot city lot, and 6 units on a 55-foot lot, subject to two rounds of public engagement. A final report and public hearing to be brought before Council in the fall of 2023. Meanwhile, investors and developers will be angling to purchase detached houses to take advantage of the upzoning. The benchmark price of the 25 detached houses sold in January on the Westside was $3,020,600, down 11.6% from a year earlier. The supply of total residential listings is up to 9 month’s supply (buyer’s market conditions) and sales-to-listings ratio is 27% compared to 100% in December 2022 and 44% in January 2022. 

Vancouver East Side: Upzoning of detached house lots may eventually have an even greater impact on the East Side, due to the addition of two SkyTrain extensions and lower prices. The typical detached house sold in January for $1,664,900, or about half that of the Westside, and down 9.3% from a year earlier. Total sales of all properties were 118 in January, down 54% from a year ago. Condos sales, with 56, led local transactions and the benchmark condo price held steady from December 2022, at $676,800. Total active listings were 867 at month end compared to 739 at that time last year and 880 at the end of December 2022. The supply of total residential listings is steady at a 7 month’s supply (balanced to buyer’s market conditions) and the sales-to-listings ratio of 33% compared with 85% in December 2022 and 54% in January 2022.

North Vancouver: A deep sleep in sales was seen in January with only 82 transactions, down 45% from a year earlier. Only 18 detached sales were seen, with the benchmark price of $2,033,000 down just 2.3% from a month earlier and 9.5% below January 2022. Meanwhile, 48 condos sold at a benchmark of $749,000, down less than 1% from December 2022. Both townhomes and condos are in seller’s market conditions with townhouse sales at similar levels to January 2022. Total active listings were at 416 at month end compared to 291 at that time last year and 385 at the end of December 2022. Total residential listings are up to 5 month’s supply (balanced market conditions) and the sales-to-listings ratio of 35% compared to 132% in December 2022 and 55% in January 2022. 

West Vancouver: Benchmarked at $3,074,400 in January, West Vancouver detached house prices are holding remarkably steady, down just 0.6% from a month earlier and less than 6% below January 2022, based on 16 sales. Total properties sold in January were 28, down 30% from December 2022 and down 38% from January 2022. The total residential listings are up to 15-month’s supply and the sales-to-listings ratio of 22% compared to 85% in December 2022 and 32% in January 2022. This is a full-on buyer’s market for those who can afford it.

Richmond: For the first time in two years, the average (not benchmark) home price in Richmond dipped below the $1 million mark in January, falling to $977,143, which was down from more than $1.2 million a year earlier. While total sales in January, at 120, were off 65% from a year earlier, there was action in the strata market. In one case a condo apartment attracted nearly a dozen offers. There were 81 condo sales in the month at a benchmark price of $720,700, a price up 4.6% from a month earlier and 3% higher than in January 2022. Richmond benchmark townhouse prices, at $1,065,600, are 2% higher than a year ago and edged up 1.5% from December 2022. Total active listings were 942 at month end compared to 752 at that time last year and 919 at the end of December. Richmond is a buyer’s market with an 8-month supply and a sales-to-listing ratio at a weak 29%. 

Burnaby East: Only 9 homes sold in January, perhaps the lowest ever recorded and below even the sluggish January 2019 which posted 11 transactions. Listings are increasing, posting a 214% spike up from December, which may keep prices in check. In January, the composite home price was $1,079,300, down 5.3% from a year earlier. There is 10-months of housing inventory in this buyer’s market, where the sales success ratio is a low 20%.

Burnaby North: Total sales were down 56% from a year earlier with 63 transactions in January at a composite benchmark of $954,200, a price down 4.7% year-over-year and off 1.1% from December 2022.(Benchmark prices slipped below $1 million last August and have been slowly descending since). Despite a lot of new condos being built over the past three years, condo prices are holding firm, benchmarked at $696,600 in January, a price 0.2% higher than in January 2022. This is considered an overall balanced market, with about a six-month supply of total listings and a sales-to-listings ratio of 31%

Burnaby South: Just 54 sales were seen in January, down from 94 a month earlier and 64% below the pace in January 2022. The composite benchmark price of $1,052,800, however, was up marginally from December 2022 and down less than 1% from a year ago. Active listings were at 352 at month end compared to 283 at that time last year and 344 at the end of December. This is a buyer’s market, despite the sticky prices, with an inventory of a 7-months’ supply and a sales-to-listing ratio of 33%, far below the 152% seen in December 2022.

New Westminster: New West flirted with a seller’s market in December 2022 but was more balanced in January as sales dipped to 40 transactions, down 25% from a month earlier and 61% below January 2022. There has been increased action in the detached housing market, particularly in the Sapperton and the Massey-Victoria Heights areas, where quick sales were seen, some above asking, at the end of January. While the benchmark detached house price is $1,384,000, New Westminster has one of the lowest composite home prices in a SkyTrain-served community, at $782,300. Both benchmark townhouse prices ($892,300 ) and condo apartments ($622,500) are higher now than a month and a year ago, which is rare in Metro Vancouver. This is considered a balanced market, with a 6-month supply of listings and a sales-to-listings ratio of 38%.

Coquitlam: Coquitlam posted 73 residential property sales in January, down 10% from December 2022 and 58% less than in January 2022, and this is considered a buyer’s market with 484 active listings – about a 7-month supply – and sales-to-listing ratio of a low 28%, compared to 107% in December 2022. Condo demand and prices are firm: 48 apartments sold in January at a benchmark price of $656,300, a price nearly unchanged (down 0.9%) from a year earlier. Just 4 townhouses sold in January, but the benchmark price of $975,000 was down just 0.3% from December 2022. 

Port Moody: Total sales in January were 23 – down from 41 (44%) in December 2022 and down from 57 (60%) in January 2022. Active listings were 188 at month end, compared to 93 at that time last year and 155 at the end of December 2022. New listings in January were up 145% compared to December 2022 and up 29% compared to January 2022. This is a buyer’s market, with the composite home price virtually unchanged from a year ago, at $1,083,700. 

Port Coquitlam: Buyers withdrew from Port Coquitlam in January, and we suspect relatively high prices may be to blame in the only Tricities market with no SkyTrain. The benchmark detached house has shot up 38% since January 2020 and, even with an 11% decline in the last year, is still at $1,279,200. Just 13 detached houses sold in January, down from 29 in the same month last year. However, this is technically a seller’s market because there is only a 4-month supply of listings and the overall sales-to-listing ratio is running at 44%, with detached houses at 66%.

Pitt Meadows: Total sales in January slumped 50% from a year earlier to just 15 transactions as the composite home price in the small community fell 15% in the same period to $830,600. 
Still, this is also seen as seller’s market because a lack of listings translates to just a 4-month supply. The current sales-to-listings ratio of 39% compares to 191% in December 2022 and 73% in January 2022, so sellers have a fragile advantage at best. 

Maple Ridge: Maple Ridge, where the composite home price of $910,000 is still 38% higher than in pre-pandemic January 2020, also saw total sales slide in January, dropped 47% from a year earlier and 17% from a month ago, to 65 transactions. The benchmark price of a detached house, the dominant sales sector, is $1,166,000, down 16.2% from a year ago and declining by an average of about 1.5% per month since last fall. New Listings in January were up 232% compared to December 2022 and the total inventory of listings is up to 7 month’s supply (balanced to buyer’s market conditions), with a sales-to-listings ratio of 30% compared to 120% in December 2022 and 51% in January 2022. 

Ladner: With 16 sales in January, up from 9 in December, Ladner saw its total supply of homes for sale drop from an 8 to a 5-month inventory in January, despite new listings jumping 209% month-over-month. Detached house prices are down 16% from January 2022, to $1,267,700, but are declining 2.5% per month. This is a balanced market tilting towards a buyer’s advantage with lower prices and a rather tepid sales-to-listing ratio of 37%, about half that of December 2022.

Tsawwassen: Tsawwassen posted zero townhouse sales in January, but only having 3 new listings will lead to that. Based on December sales, therefore, the benchmark townhouse price remains 4.4% lower from a year ago, at $937,100. Detached house prices are down 11% year-over-year to $1,434,600 but remain 30% higher than in pre-pandemic January 2020. 

Total housing sales were 20 in January, down 52% from a year earlier, but new listings were up 185% from December 2022. This is a balanced market with a healthy supply of listings and a sales ratio of 35%, down sharply from 115% a month earlier. 

Surrey: Surrey housing sales slumped across the board in January, with detached house transactions down 67.8% year-over-year, townhouse sales down nearly 50% and condo apartment sales falling 60% compared to January 2022. Benchmark prices followed suit, with detached house prices dropping 22% to $1,552,110; townhouse prices down 16% from a year ago to $807,200 and condo prices dipping 7.5% year-over-year to $526,938. With active listings rising and sales and prices falling, Surrey is a serious buyer’s market right now. Opportunity exists in that market.