Prices across all housing types in Metro Vancouver were up in July, but Port Coquitlam continues to see the biggest gains among the Tri-Cities, according to monthly stats published by the Real Estate Board of Greater Vancouver (REBGV).
In the last six months, the average price across all residential housing types in Port Coquitlam – the most affordable market in the Tri-Cities – has risen 9.8 percent, compared to 7.3 percent in Coquitlam and 3.5 percent in Port Moody.
The average price of a Port Coquitlam single-family home is now over $1.4 million, having risen 11.2 percent in the last six months, or approximately $160,000.
Average townhome prices are close to $1 million, jumping 12.6 percent, or around $120,000 in six months; while average apartment prices have risen 5.8 percent.
In fact, every house type in Port Coquitlam has surpassed the losses experienced after the Bank of Canada started to hike interest rates in March 2022.
Andrew Lis, REBGV’s director of economics and data analytics, explained that, despite interest rates being the highest in over 10 years, sales activity has surpassed last year’s levels.
This shows the “strength of demand in our market and buyers’ ability to adapt to and qualify for higher borrowing costs,” Lis added.
“While sales remain about 15 percent below the ten-year average, they are also up about 30 percent year-over-year, which is not insignificant. Looking under the hood of these figures, it’s easy to see why sales are posting such a large year-over-year percentage increase.
“Last July marked the point when the Bank of Canada announced their ‘super-sized’ increase to the policy rate of one full percent, catching buyers and sellers off guard, and putting a chill on market activity at that time.”
Regionally, the REBGV counted 2,455 property sales in July, 2023, a 28.9 percent increase from the 1,904 sales in July, 2022, but 15.6 percent below the 10-year seasonal average.
Meanwhile there were 4,649 properties listed for sale, a 17 percent increase compared to July, 2022, but 5.2 percent below the 10-year seasonal average.
REBGV’s total inventory sits at 10,301, a four percent decrease from this time last year, and 14.4 percent below the 10-year seasonal average.
In the Tri-Cities, a total of 377 properties sold last month, a 32 percent increase compared to July, 2022.
There were 624 properties listed for sale, a 21 percent increase from July 2022.
Downward pressure on pricing occurs when the sales-to-active listing ratio dips below 12 percent for a sustained period, while price increases occur then the ratio is above 20 percent, according to the REBGV.
Regionally, the sales-to-active listings ratio for June was 24.9 percent across all property types: 16.5 percent for single-family homes, 32 percent for townhomes, and 30.6 percent for apartments.
Patrick Penner, Local Journalism Initiative Reporter, Tri-Cities Dispatch