February listing data show a continued reluctance among prospective home sellers to engage in Metro Vancouver’s housing market, leading to below-average sales activity. With sales remaining well-below historical norms, the number of available homes for sale in the region have continued inching upwards.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,808 in February 2023, a 47.2 per cent decrease from the 3,424 sales recorded in February 2022, and a 76.9 per cent increase from the 1,022 homes sold in January 2023.
Last month’s sales were 33 per cent below the 10-year February sales average.
“It’s hard to sell what you don’t have, and with new listing activity remaining among the lowest in recent history, sales are struggling to hit typical levels for this point in the year. On the plus side for prospective buyers, the below-average sales activity is allowing inventory to accumulate, which is keeping market conditions from straying too deeply into sellers’ market territory, particularly in the more affordably priced segments.”
Andrew Lis, REBGV Director, economics and data analytics
Source: REBGV
There were 3,467 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in February 2023. This represents a 36.6 per cent decrease compared to the 5,471 homes listed in February 2022 and a 5.2 per cent increase compared to January 2023 when 3,297 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 7,868, a 16.7 per cent increase compared to February 2022 (6,742) and a 5.2 per cent increase compared to January 2023 (7,478).
“While we continue to expect home price trends to show year-over-year declines for a few more months, current data and market activity suggest pricing is firming up. In fact, some leading indicators suggest we may see modest price increases this spring, particularly if sales activity increases and mortgage rates hold steady,” Lis said.
“In the somewhat unusual market environment we find ourselves in right now with higher mortgage rates, fewer sales, and inventory that is inching higher but remains far from abundant, working with a Realtor who understands your local market conditions and has experience navigating challenging markets is paramount.”
Source: REBGV
For all property types, the sales-to-active listings ratio for February 2023 is 23 per cent. By property type, the ratio is 16.8 per cent for detached homes, 30.1 per cent for townhomes, and 25.8 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 MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,123,400. This represents a 9.3 per cent decrease over February 2022 and a 1.1 per cent increase compared to January 2023.
Sales of detached homes in February 2023 reached 514, a 49.1 per cent decrease from the 1,010 detached sales recorded in February 2022. The benchmark price for detached properties is $1,813,100. This represents a 12 per cent decrease from February 2022 and a 0.7 per cent increase compared to January 2023.
Sales of apartment homes reached 928 in February 2023, a 49.9 per cent decrease compared to the 1,854 sales in February 2022. The benchmark price of an apartment property is $732,200. This represents a three per cent decrease from February 2022 and a 1.6 per cent increase compared to January 2023.
Attached home sales in February 2023 totalled 366, a 34.6 per cent decrease compared to the 560 sales in February 2022. The benchmark price of an attached unit is $1,038,500. This represents a 6.3 per cent decrease from February 2022 and a 1.8 per cent increase compared to January 2023.
* Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.
Tags: real estate Vancouver, Vancouver real estate, vancouver realestate, home sales, vancouver homes sale, house prices, housing prices, house buying, real estate vancouver market, vancouver market, real estate agent Vancouver, burnaby realtor, Geoff Jarman, Geoff Jarman top Burnaby realtor, 2023 market news, Vancouver Multifamily Market, February 2023 market news, housing market
Laneway homes are small homes constructed in the backyard of a primary residence, facing the lane. They can serve as an additional space for families or a new source of rental housing, as well as generate income for the homeowner.
The City of Burnaby’s Housing Choices program is aimed at diversifying the housing options available in the City’s single and two-family neighborhoods.
Image source: City of Burnaby
The first phase of the program was focused on implementing laneway homes and secondary suites in semi-detached homes.
In the spring of 2022, a public survey was conducted to gather input on this initial phase of the Housing Choices program.
Burnaby is considering prioritizing laneway homes and secondary suites in semi-detached homes as part of its program, with a draft to be reviewed by the city council in early 2023.
Public open houses are set to take place in spring 2023, and official bylaw changes are expected to be implemented by fall 2023.
The city plans to present a detailed report on laneway homes at the planning and development committee meeting on Feb. 8.
In the meantime, a report from October 2022 shows that over 250 people registered for workshops, and an additional 100 attended drop-in open houses, while 2,550 respondents completed the Housing Choices Survey. A full summary of the engagement process has been prepared and is now available to view: Housing Choices “What We Heard” Report.
Image source: City of Burnaby
Participants expressed interest in flexibility for the design and construction of laneway homes.
Participants in the October 2022 report on Burnaby’s laneway homes expressed a need for affordability and feasibility, including reduced permitting and servicing costs, flexible design options, and a clear approval process to minimize building delays and red tape.
They also supported designs with more living space and homes with multiple stories, emphasizing the importance of accessible design features such as single or no-step entrances, wide entrances, and living spaces on the main floor.
While there was interest in entrances facing the lane for efficient emergency access, concerns were raised about potential safety issues due to traffic. As a solution, some suggested using side entrances instead.
Participants in the October 2022 report expressed concerns about the impact of below-grade living spaces on natural light in homes, which was proposed as an option to add additional building height.
Three-storey options were also considered too tall for some neighbourhoods, with concerns raised about the proportionality of the laneway home to the principal dwelling. Opinions on setbacks varied, with some preferring minimum setbacks from the principal residence, lane, and neighbouring homes, while others preferred to optimize open space by making the laneway home less wide than the principal residence.
Image source: City of Burnaby
Reduced setbacks were seen as more suitable for urban areas with smaller lots, while larger, less urban lots were seen as less suitable. Participants also emphasized the importance of green space and private outdoor areas between the laneway home and primary residence, and expressed a desire for laneway homes to look like welcoming homes rather than garages, with windows facing the lane and social spaces facing the laneway to encourage neighbourhood interaction.
Burnaby conducted a housing choices survey that spanned three weeks from late March 2022 and received 2,550 responses primarily from homeowners but also renters throughout the city. According to the survey results, 69% of homeowners expressed interest in building a laneway home on their property, while 59% of renters showed interest in living in one. The survey found that 79% of respondents indicated they would build a laneway home to accommodate their families, while 66% would build one to rent out.
For more information about Housing Choices Program in Burnaby call Geoff Jarman at 604-313-7280
