Market Outlook - Vancouver
Table of contents
Vancouver Housing Market Outlook
According to the Real Estate Board of Greater Vancouver (REBGV), monthly market report prices continue to rise as homebuyer confidence slowly returns. The average home price in the Greater Vancouver Area (GVA) for April 2023 was $1,295,266. That’s a 3.4% decrease compared to a year earlier but a 2.2% increase over the previous month.
April 2023 saw 2,741 sales, a 16.5% decrease compared to 3,218 a year earlier. While listings are still below the historical norms, sales are returning and rising to levels close to what they saw last spring.
Benchmark prices for all types of residential properties in Metro Vancouver sit at $1,170,700 currently, with a 7.4% decrease over April 2022 but a 2.3% increase compared to March 2023.
What Are The Average Home Prices In Vancouver?
Experts predict the housing market should pick up toward the end of 2023. While average home prices in the GVA have decreased significantly compared to a year ago, there is an upward trend in month-over-month gradual price increases.
Home sales in April 2023 decreased by 16.5% compared to sales recorded in April 2022. New listings in April decreased 29.7%; meanwhile, total listings are down 4.2% compared to the previous year.
| Greater Vancouver Residential – All | |||
| Average Price | Units Sold | New Listings | Total Listings |
| $1,170,700 | 2,741 | 4,307 | 8,790 |
Here Are The Top 10 Districts For Average Price Appreciation (Detached Homes)
The Greater Vancouver area had been predicted to see price appreciations in 2023, which as of today, rings true. Record low inventory is creating a competitive landscape driving gradual price increases despite climbing interest rates.
Here are the top 10 regions currently seeing the highest monthly appreciation in sales prices on detached homes.
| Area | Benchmark Price | 1 Month Change |
|---|---|---|
| Bowen Island | $1,456,300 | 8.3% |
| Tsawwassen | $1,473,200 | 7.2% |
| Ladner | $1,341,900 | 7.1% |
| Sunshine Coast | $917,000 | 6.6% |
| Squamish | $1,635,700 | 6.0% |
| Whistler | $2,519,200 | 5.8% |
| Pitt Meadows | $1,220,900 | 4.2% |
| Burnaby South | $2,145,800 | 3.6% |
| Maple Ridge | $1,219,600 | 3.4% |
| Lower Mainland | $1,702,200 | 3.2% |
Vancouver Housing Market Reports For 2023
According to the Residential Market Forecast from REBGV Economics, it is predicted that due to interest rates being at their peak of the tightening cycle, 2023 sales will be roughly 2.6% lower than in 2022. However, home prices are predicted to increase slightly this year as steady population growth and higher immigration targets put pressure on the supply of homes. This growth will cause a greater demand in the Vancouver market, fuelling slightly higher prices. Average prices across all homes in the REBGV area are forecast to reach around $1.2 million for 2023, a 1.4% increase over 2022.
All that being said, there are still risks that sales could slow more significantly if the economy stalls and heads into a recession as predicted. Additionally, prices could end up trending lower than forecasted if a recession does hit, as there may be significant job losses and much higher inflation to contend with, influencing an even higher cost of borrowing than we see today.
Frequently Asked Questions
Is the Vancouver housing market going to crash?
There are currently no indications that the Vancouver housing market will crash. As with the rest of Canada, Vancouver has seen a decline in sales and home prices due to increasing interest rates. However, this has shifted in recent months, with home prices and sales continuing to increase as we progress into 2023.
Will Vancouver housing prices increase in 2023?
The REBGV predicted in January 2023 that prices were likely to appreciate, which is true for the Greater Vancouver Area (GVA) today. Month-over-month prices have gradually increased, which will continue as 2023 progresses.
How do I get approved for a mortgage in Vancouver?
Getting approved for a mortgage in Vancouver starts with assessing your financial situation and how much you can afford. From there, you can compare rates and get a pre-approval or pre-qualification for a mortgage.
Final Thoughts
Overall, it appears that Vancouver’s housing market is set to see continued price increases month over month for the remainder of 2023. While prices and listings have dropped over the previous year, demand in the market remains strong.
With near-record-low inventories, this creates a more competitive market for those looking to purchase this spring. If you’re looking for a home in Vancouver in 2023, expect this market to continue to trend upward and rebound in the coming months as the spring season continues.
