Q1 2023 Market Update
A few things happened in the real estate market in the first quarter of 2023. From a market performance perspective, prices increased, and sales and inventory are below their 10-year averages. Below is a Q1 2023 market analysis for you.
There were changes to the foreign buyer ban, and the First Time Home Buyer savings program was officially released by the federal government. Here are two links with more information about these for your reference:
Q1 Market Analysis
Key Insights:
- Apartments and townhomes increased every month starting in Jan.
- At the end of Q1 (March), apartments increased by 6%, and townhomes were between 3.4-6.5%.
- Detached homes prices increased in February and saw significant monthly gains in March.
- At the end of Q1(March), detached home prices increased by 2-4%.
- Prices across areas and property types are below the March 2022 highs by 6-11%.
- March Inventory levels are well below long-term averages at -18%.
- Sales are also well below long-term averages, down -29% vs their 10-year average. Low sales are unsurprising, given the relationship between sales and inventory.
I focus on Vancouver overall and three sub-markets for my analysis: Vancouver, Vancouver West, Vancouver East and North Vancouver. The trend aligns with Greater Vancouver, but the numbers are specific to these areas.
What does this mean for buyers?
I suspect we are going to see prices continue to rise for two reasons:
- The Bank of Canada held rates in March and is signalling they will not increase rates further. If rates remain flat, we will unlikely see prices come down.
- There is still a supply challenge in Vancouver, and with low inventory, sellers can keep their prices.
What does this mean for sellers?
With low inventory and prices increasing, you should expect good demand and a fair price for your home.
Detached Homes
| March 2023 | vs Feb 2023 | Q1 | vs March 2022 | |
| Vancouver | $ 2,380,100 | 2.85% | 3.87% | -10% |
| Vancouver East | $ 1,713,000 | 2.57% | 2.11% | -12% |
| Vancouver West | $ 3,218,500 | 3.23% | 4.72% | -9% |
| North Vancouver | $ 2,141,300 | 1.43% | 2.88% | -11% |
Townhomes
| Home Price Index (HPI) Changes | ||||
| March 23 | vs Feb | Q1 | vs March 22 | |
| Vancouver | $ 1,269,600 | 2.85% | 3.39% | -9% |
| Vancouver East | $ 1,079,600 | 2.57% | 3.78% | -8% |
| Vancouver West | $ 1,391,300 | 3.23% | 3.39% | -9% |
| North Vancouver | $ 1,304,600 | 1.43% | 6.50% | -7% |
Apartments
| Home Price Index (HPI) Changes | ||||
| March 23 | vs Feb | Q1 | vs March 22 | |
| Vancouver | $ 786,200 | 0.47% | 1.92% | -6% |
| Vancouver East | $ 688,400 | 0.70% | 1.73% | -6% |
| Vancouver West | $ 827,400 | 0.36% | 1.95% | -6% |
| North Vancouver | $ 782,800 | 2.50% | 3.54% | -6% |