Months of frenzied home buying seems to have calmed in the Tri-Cities and while prices haven't dropped much — and rose in Port Moody — experts suggest a slight cooling is underway.
Earlier this spring, Coquitlam condos were selling for 25 per cent over asking and people lined up down the street to put offers in on a house in the same city listed for under $1 million.
That sense of urgency seems to have diminished, according to the latest analysis by the Real Estate Board of Greater Vancouver (REBGV).
Rising interest rates, including a half point hike announced Wednesday (June 1) by the Bank of Canada, seems to have created some breathing room in the Greater Vancouver real estate market, which includes Coquitlam, Port Coquitlam and Port Moody.
"With interest rates rising, home buyers are taking more time to make their decisions in today’s housing market," stated Daniel John, REBGV chair in a press release.
"Home buyers have been operating in a frenzied environment for much of the past two years. This spring is providing a calmer environment, with fewer multiple offer situations, which is allowing buyers to explore their housing options, understand the changing mortgage market, and do their due diligence."
Buyers aren't seeing much of a drop in house prices
Locally, prices haven't dropped that much in Coquitlam and Port Coquitlam while In Port Moody, prices are continuing to rise.
Below are benchmark home prices and the change since April 2022:
- Detached: $1,950,800, -0.6%
- Apartment: $717,400, -0.8%
- Townhouse: $1,121,400, -2.4%
- Detached: $1,517,700, -1.4%
- Apartment: $653,700, -0.9%
- Townhouse: $1,019,000, -1.2%
- Detached: $2,231,100, 0.6%
- Apartment: $757,600, 0.3%
- Townhouse: $1,138,500, 0.1%
Housing demand remains higher than available listings
One of the reasons house prices are staying high — and still going up in Port Moody — is the availability of supply.
According to John, housing supply totals would have to "more than double" to bring the market close to balanced territory.
Across the region, new listings declined by about 10 per cent compared to May 2021. However, they increased 4.4 per cent compared to last month, the real estate board states.
For all property types, the sales-to-active listings ratio for May 2022 is 29.2 per cent. By property type, the ratio is 18.3 per cent for detached homes, 35.5 per cent for townhomes, and 38.1 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
The real estate report notes as well that the MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1.261 million.
This represents a 14.7 per cent increase over May 2021, but a 0.3 per cent decrease compared to April 2022.