Sign of the times? Median prices in East Vancouver drop as home sales fall
Median prices of residential properties in East Vancouver dropped month-over-month in April.
This came as sales contracted compared to March 2022.
Median price is regarded as a good indicator of property prices.
Unlike average price, the median price, which the middle point in a list of prices, is not affected by extreme high or low values.
Figures released by the regional real-estate board indicate that that median price of a detached home in East Vancouver declined to $2,065,000 in April 2022 as against $2,095,000 in March.
Sales of this type of property totalled 110 in April compared to 174 in March.
That means a 36.8 percent decline.
Meanwhile, the median price for attached properties fell from $1,404,000 in March 2022 to $1,350,000 in April.
In terms of sales, 65 attached properties were sold in April compared to 84 in March.
This shows a 22.6 percent contraction.
As for East Vancouver apartments or condos, 178 were sold in April, which was a drop for March 2022 sales of 239.
It’s a 22.5 percent drop.
There was no month-over-month change in median price for condos on this side of the city at $680,000.
Compared to the West Side of Vancouver, the East Side is a more affordable area.
To illustrate, the median price of a West Side detached home in April 2022 was $3,768,000.
A recent report by RBC Economics noted a “softening” in sales in Vancouver and three other major urban centres in the country.
The other markets are Calgary, Montreal and Toronto.
This development followed two rounds of key rate increases made by the Bank of Canada in March and April this year.
“All evidence points to the Bank of Canada’s rate tightening cycle starting to have an impact, as recent data released from Canada’s four largest housing markets show early signs of softening demand,” bank economist Carrie Freestone wrote in a May 5 report.
Freestone also noted that “price growth has started to cool”.
Vancouver is one of the markets covered by the Real Estate Board of Greater Vancouver.
In April 2022, sales in areas under the jurisdiction of the REBGV fell to 3,232 homes compared to 4,344 in March for a 25.6 percent decrease.
In addition to Vancouver, the board covers Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, West Vancouver, and Whistler.
In April this year, the Vancouver-based Dexter Realty stated in a report that the “super cycle” of Metro Vancouver real estate market is coming to an end.
The realty company made the statement as it noted year-over-year declines in March 2022 sales.
Sales in April 2022 are no different.
The 3,232 homes that changed hands last April in REBGV markets mark a 34.1 percent decline from the 4,908 sales recorded in April 2021.
In a recent report on May 4, Dexter Realty stated in a report by partner and managing broker Kevin Skipworth that April confirmed that the “residential super cycle is over in Metro Vancouver”.
“As befitting a housing market that has defied all traditions since March 2020, the current calming is happening in midst of what, conventionally, is the most active selling season of the year,” Skipworth wrote.