March 2023 Real Estate Market Update: Spring Brings Modest Growth Amid Lower Listings

As the spring market begins to take shape, Metro Vancouver's real estate landscape shows a blend of promising price growth and limited new listings. Despite higher borrowing costs, March 2023 demonstrated stronger-than-expected sales activity across several property types.

Key Insights from March 2023:

Home Prices Show Growth:
The composite benchmark price for residential properties in Metro Vancouver increased by 1.8% from February 2023, reaching $1,143,900. Detached homes saw a notable 2.7% rise month-over-month, while townhomes and apartments rose by 1.7% and 0.7%, respectively.

Sales Activity Improves:
Total home sales reached 2,535 in March, a significant 42.5% decline compared to March 2022 but an encouraging trend considering ongoing market challenges. Sales exceeded expectations despite elevated borrowing costs and below-average inventory levels.

Inventory Constraints:

There were 4,317 new listings in March 2023, marking a 35.5% decrease from March 2022 and 22.3% below the 10-year seasonal average. The total number of homes listed for sale was 8,617—17.3% below the 10-year average but 8.1% higher than last year.

Sales-to-Active Listings Ratios:

• Detached Homes: 23.3%

• Townhomes: 36.7%

• Apartments: 34.9%
  These ratios suggest balanced market conditions overall, with townhomes and apartments leaning toward a seller's market.

Regional Highlights:

• Burnaby: Detached benchmark prices saw modest increases across Burnaby East, North, and South, with Burnaby East standing at $1,727,900. Apartments showed steady gains, with Burnaby South leading at $774,900.

• New Westminster: Benchmark prices for apartments reached $648,000, a 2.3% monthly increase, while detached homes held steady at $1,430,100.

• Tri-Cities: Coquitlam, Port Coquitlam, and Port Moody showed continued resilience. Port Moody detached homes reached a benchmark price of $2,017,400, reflecting a 2.4% increase month-over-month.

What This Means for Buyers and Sellers:
For sellers, March's activity signals that strategic pricing is key to capturing interest in a market still adjusting to economic pressures. For buyers, opportunities remain across various property types, especially as inventory levels begin to stabilize.

As we head deeper into the spring market, staying informed and consulting a knowledgeable real estate professional will help navigate this evolving landscape.