2023 Mid Year Luxury Report - Vancouver

Vancouver

Sellers’ ‘sit and wait’ attitude had a minimal effect on average home prices in the $1 – 3.99 million segment, which dipped by only 5.59% from February 2022’s high-point.

In Vancouver, the first half of 2023 was marked by uncertainty, as buyers and sellers held off on real estate decisions pending the Bank of Canada’s interest rate announcement. Once rates were held steady in February, buyers regained confidence and returned to the market, but sellers were slower to respond, resulting in an imbalanced market.

The spring market presented a conundrum for sellers, especially for the majority who wanted to level up or downsize. Where sellers were confident they could sell their home quickly, they did not have the same belief they would find a suitable replacement. This tension between seller hesitancy, and strong buyer demand, led to price increases not only in the conventional market but also in the premium segment. For instance, North Vancouver now has more residential class inventory in the $4 – 6 million range, which was previously uncommon. Similarly, East Vancouver has inventory priced around $2 million, surpassing the typical high $1 million range.

For residential class homes priced $1 – 3.99 million, the average sold price consistently increased month-over-month from January to June 2023. The highest average price of $2,038,395 was recorded in May, representing a 1.3 percent decrease compared to the previous year. Condo-class homes in this price range averaged $1,404,413. 

In the first half of 2023, the combined average sold price for homes and condos in the $1 – 3.99 million range was $1,675,485, reflecting a 7.22% decline compared to the same period in 2022. A total of 6,047 units were sold in the first half of 2023, down from 8,085 units in the equivalent period in 2022.”

“High-demand in the mid-market makes this a great time for sellers who want to level up. We’re advising clients to take advantage of market conditions favoring sellers in the middle market, and the tempered demand in the upper market, which is balanced.”

Andrew Carros, Chief Operating Officer Engel & Völkers Vancouver

Engel & Völkers anticipates a summer slowdown, in line with historical seasonal patterns, as buyers and sellers tend to be preoccupied with weather and vacations. Rising interest rates may keep sellers on standby, while buyers approach deals with some caution.It is difficult to accurately assess whether the current market is a true seller’s market for homes priced at $1 – 3.99 million because the number of units for sale on the market is so low. If inventory was at the same level as in 2021 or 2022, the market would be closer to balanced.

For Vancouver, it’s important to work with a professional that can help differentiate between real-time market conditions and the surrounding chatter. A key to success will be to pay attention to personal financial and lifestyle situations when making decisions in the current market. 

Engel and Völkers’ 2023 Year End Canadian Luxury Real Estate Market Report reveals the resilience of Canada’s premium real estate market amidst economic uncertainty. The report offers valuable insight into market preferences, economic factors, and evolving preferences for buyers and sellers in Canada’s most sought-after neighborhoods.

CLICK HERE to access the complete 2023 Luxury Report for Canada