Market News 2023-08

Metro Vancouver witnessed a rise in home prices in July 2023 due to robust sales figures and a limited housing inventory. Despite the Bank of Canada's rate hike, which resulted in the highest mortgage rates in over a decade, sales activity in July 2023 surpassed last year's numbers, indicating strong market demand and adaptability among buyers. In terms of specific property types, detached homes, apartment homes, and attached homes all saw significant sales increases from July 2022, with corresponding upticks in their benchmark prices.

Real estate sales in the Fraser Valley experienced a decline after five consecutive months of growth due to rising interest rates and the typical summer sales cycle. While July 2023 sales were down 29.3% from June, they were 37.8% higher than July 2022, and active listings increased by 4.3% over June. The market dynamics saw detached homes softening, but townhomes and apartments remained steady, and average property prices across categories showed minimal changes compared to the previous month.

Despite the Bank of Canada's rate hike, the Metro Vancouver real estate market remains resilient, driven by strong demand and limited inventory across all property types. This contrasts with the Fraser Valley, where the typical summer sales cycle and rising interest rates have softened the market, particularly for detached homes. Nonetheless, the Fraser Valley's annual sales growth points to an overall positive long-term trend. Factors such as alternative financing strategies, migration patterns, and buyer preferences are influencing these market dynamics.

The price charts and more details you can find in the file attached.

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