Don’t call it a comeback just yet, but the reports for Q1 on Metro Vancouver have shown a slight improvement from the previous two quarters, giving rise to the hope that the bottom has finally been reached.

The latest data from Zonda Urban and NHS Live recorded sales amounting to 2,143 in the first quarter. That’s a 6% increase compared to the last quarter in 2022.

The Bank of Canada raised the overnight rate by 0.25% in January and kept it at 4.5% in early March, which allowed for a gradual rise in buyer confidence in the first quarter of 2023. With interest rates expected to stabilize or possibly decline, buyer morale was boosted in the second half of the first quarter.

Pricing and Incentives Luring Buyers

Most of the Q1-2023 projects were released in March, and many of these were townhouse developments south of the Fraser River. These new builds drew end users, including new families and first-time homebuyers. Thanks to their positioning, incentive programs, and pricing, the market responded favorably to these projects.

Over Q1-2023, condominium projects well-positioned with attractive entry-level pricing and incentive offers successfully lured investors and end-user customers.

Throughout the quarter, attractive pricing, and incentives, such as decreased deposit structures, lower assignment fees, and decorating allowances, continue to pique buyer interest.

As delayed 2022 project launches start to hit the market in 2023, buyer activity is expected to increase in the year’s second half.

Metro Vancouver’s Average Gross Pricing

Zonda Urban has recorded average gross pricing for projects in Metro Vancouver over the past year. The average price for concrete builds in Metro Vancouver was $915,975, with an absorption rate of 54%. North of the Fraser, the price rose to $1,055,586 with an absorption rate of 54%. South of the Fraser, pricing hit $649,508 with an absorption rate of 52%.

Metro Vancouver’s average price for wood frame builds was $643,519, with an absorption rate of 91%. North of the Fraser’s price was $709,367, and south of the Fraser was $595,331, with 92% and 90% absorption rates, respectively.

Townhomes in Metro Vancouver were priced at $1,120,595 with an absorption rate of 58%. North of the Fraser cost $1,344,449, and south of the Fraser sat at $1,021,990 with absorption rates of 51% and 64%, respectively.

Is Recovery on The Horizon for Metro Vancouver? by Erin Nicks | Livabl