Last year saw record prices, near-record sales volumes
Michael McCullough
Sun
The Lower Mainland experienced another banner year for real estate sales in 2004, with record prices and near-record sales volumes, year-end sales figures confirm.
Both the Greater Vancouver and Fraser Valley real estate boards released December and whole-year sales figures from the Multiple Listing Service on Thursday.
A total of 36,258 homes changed hands in Greater Vancouver, down four per cent from the 2003 record of 37,816.
The benchmark price for a detached house (representing a typical home in the region) rose exactly 10 per cent for the year, to $496,980. Benchmark prices for townhouses and condominiums rose 17 and 14.9 per cent respectively, to $329,520 and $246,550.
In the Fraser Valley (including Surrey, Delta and White Rock), there were 18,167 home sales, down slightly from 2003’s record of 18,351. The dollar volume of sales rose 12 per cent, however, to $5.3 billion.
The average price of Valley houses rose 15.6 per cent, while townhouses rose 15.7 per cent and condos, 11.4 per cent.
But the statistics belie what were really two different housing markets in the first and second half of 2004. January to June saw frenzied buying as new sales records were set in each of February, March and April. Beginning in July, sales activity abruptly cooled and price increases were tempered by a rise in new listings.
“We started the year in a really hot sellers market and we ended it trending to a more controlled market where there was more product available to the consumer,” said Fraser Valley Real Estate Board president Moss Moloney.
In the Fraser Valley, there were just 3,850 resale listings on the market in June. That inventory gradually rose to 6,000 in December, Moloney noted.
And though interest rates remained at or near 40-year lows throughout the year, the backlog of buyers waiting to get into the market dissipated, said George Pahud, first vice-president of the Real Estate Board of Greater Vancouver.
“The pent-up demand that was fed by low interest rates was satisfied,” he said. As a result, Pahud does not foresee the same kind of price increases in 2005 that the market witnessed in 2003 and 2004.
Once again, West Vancouver was home to the most expensive homes in the region, with house prices benchmarked at $873,190, townhouses at $692,270 and condos at $415,510.
In Greater Vancouver, house prices rose fastest on the Sunshine Coast, where the benchmark was $283,630 in December, up 15.9 per cent since a year ago. Townhouses appreciated most quickly on Vancouver‘s west side, where the benchmark value was $507,590 in December, up 37.3 per cent from a year earlier. Port Moody boasted the biggest hike in benchmark condo prices, up 26.2 per cent to $216,800. East Vancouver apartments were close on Port Moody’s heels, up 25.2 per cent year-over-year to $190,970.
In the valley, White Rock was the preferred address, with houses averaging $516,137 in December, townhouses averaging $301,894 and condos, $263,019. The seaside suburb also had the fastest-appreciating condos, which rose 42 per cent in value since December 2003.
Abbotsford enjoyed the steepest rise in detached house and townhouse prices year over year. Houses rose 14.5 per cent to $305,361, while attached units were up 31 per cent on average to $223,481 in December.
Taking sales over the entire year, Mission had the greatest average price increase for Fraser Valley houses, up 19.2 per cent over 2003, while in Langley townhouses went up 26.3 per cent and condos, 28.6 per cent.
Looking forward into 2005, Moloney expects the market to stay favourable to sellers, though buyers will have more to choose from, and will drive harder bargains.
HOME PRICES APPRECIATE, SALES VOLUME SLOWS:
The Lower Mainland’s real estate market showed explosive growth in 2004, however the red-hot market cooled slightly compared to 2003 in terms of sales volumes. Here’s a comparison between 2004 and 2003:
GREATER VANCOUVER PRICES
*$246,550
+14.9%
Condominium
Sales volume:
16,051 units sold
+8.1%
$329,520
+17%
Attached home
Sales volume:
5,610 units sold
-4%
$496,980
+10%
Detached home
Sales volume:
14,597 units sold
-14.8%
FRASER VALLEY PRICES
$136,704
+11.4%
Condominiums
$220,450
+15.7%
Townhouses
$348,018**
+15.6%
Detached home
DECEMBER DETACHED HOUSING SALES:
Units Sold Change from last month Average sale price Change from last year
BURNABY NORTH 43 -3 $495,600 $24,600
BURNABY SOUTH 32 -10 $456,900 $27,600
COQUITLAM 88 -9 $427,000 $44,400
DELTA SOUTH 27 -9 $459,200 -$26,000
MAPLE RIDGE 58 -48 $345,500 $22,600
NEW WESTMINSTER 14 -7 $394,500 $56,800
NORTH VANCOUVER 66 -40 $571,400 $29,100
PORT COQUITLAM 32 -11 $339,100 $9,200
PORT MOODY 8 -11 $410,600 -$92,800
RICHMOND 106 -17 $474,100 $32,100
SQUAMISH 14 6 $348,400 $7,300
SUNSHINE COAST 31 -21 $300,000 $24,300
VANCOUVER EAST 141 -22 $454,100 $55,200
VANCOUVER WEST 103 -10 $924,100 $48,200
WEST VANCOUVER 50 -2 $1,091,000 $57,000
Source: Rebgv. fvreb. mls
© The Vancouver Sun 2005