Your Definitive Guide to the Vancouver & GVA Housing Market in 2023.

Market Report Summary for June 2023

• The average home sale price in the GVA decreased 9.2% year-over-year to $1,123,400 for June 2023.
• The average price of a detached home in the GVA decreased by 11.2% year-over-year to $1,959,200 for June 2023.
• The average price of a semi-detached home in the GVA decreased by 15.8% year-over-year to $1,811,900 for June 2023.
• The average price of a condo in the GVA decreased by 3.0% year-over-year to $732,000 for June 2023.
• The average rent for a 1-bedroom apartment in the GVA increased by 18.7% year-over-year to $2,765 for June 2023.

Vancouver Housing Market Outlook

As of June 2023, data from the Real Estate Board of Greater Vancouver (REBGV) indicates that the average home price in Vancouver is $1,123,400. Over the last month, there have been 3467 new listings. 

Vancouver house prices decreased by 9.2% compared to a year ago. However, housing prices decreased by 0.8% in the last three months.  As prices increase incrementally, we see more balance returning to the market, albeit slowly.

Additionally, Vancouver’s sales-to-new listings ratio (SNLR) stands at 46.9% as of June 2023, showing power is still in the buyer’s hands as the market edges closer to being balanced. It’s believed this might be widely due to a new law that has come into effect in British Columbia called the Property Law Amendment Act and the Home Buyer Rescission Period Regulation affording buyers more time to complete home inspections.

(For context, a market is considered a buyer’s market when the SNLR is 30% or less since a lower proportion of sales than listings indicates lower demand relative to supply.)

Who’s buying Vancouver real estate?

Until recently, the primary demographics driving demand in Vancouver’s residential property market were those looking to upsize their homes, foreign investors looking to purchase an investment property in one of Canada’s most lucrative markets, professionals who recently immigrated to Canada in the past 5 years, and out-of-province migrants advancing their careers in one of the nation’s economic engine. With the passing of the omnibus Bill C-32 legislation, including the foreign buyers’ ban and anti-flipping tax, the GVA homebuyers’ demographic may be shifting away from foreign investment. However, it remains to be seen whether efforts to limit foreign buyers in Vancouver will have an impact; according to Statistics Canada, foreign investors make up less than 12% of the city’s total homeownership

Multi-property Investors

According to a report by CMHC, investors and multi-property owners accounted for over 15% of British Columbia’s homebuyers in 2021, particularly in Vancouver. Consequently, Vancouver’s largest real estate market segment is now investors, ahead of first-time buyers, which was the market’s largest segment until 2016.

Upsizing Buyers

Upsizing by buyers has driven Vancouver’s demand for condos, which showed the highest year-on-year price increases of all property types, from $1,090,900 in February 2020, which is still more than 25% higher compared to today’s price at 1,366,500. Upsizing buyers also continued to explore secondary markets like Burnaby, Richmond and Coquitlam over the last 6 months.

Immigration & Out-of-province Migration

While the pandemic saw thousands of homebuyers leaving urban areas searching for more space and affordable housing, new immigrants are making Vancouver homes on a continued surge.  Although many Vancouverites continue to leave the GVA due to housing affordability limitations, many continue to move here. According to this report by Re/Max, the federal government expects to bring an additional 2 million new immigrants to Canada – many of whom will still choose to settle in Toronto, Vancouver and Montreal.

First-Time Homebuyers

Getting a mortgage in Vancouver as a first-time buyer can be challenging for many, especially since BC does not offer competitive land transfer rebates compared to its property valuations. 

While programs like the First Time Home Buyer Incentive are in place to help people afford homes in the city, this has yet to do much to offset affordability as the stress test makes it harder to qualify. At the same time, the Bank of Canada keeps rates elevated – adding a barrier to qualifying for a home in Vancouver without a combined household income over $200,000. 

Given the slowdown over the last 12 months in home prices, Vancouver remains a difficult market to purchase a first home without outside financial assistance. Unsurprisingly, first-time homebuyers are no longer the largest segment of the city’s real estate market. 

Average Home Prices in Vancouver for June 2023

With the Bank of Canada finally pausing its rate-tightening cycle, now may be the perfect time to buy a home in Vancouver before the storm. Many experts say the housing market should pick up by the end of 2023, when mortgage rates are expected to decline, making it easier for borrowers to pass the government’s stress-test criteria on prime mortgages. Timing the market in the GVA is precariously hard as the pent-up demand sitting on the sidelines is ready to pounce at the perfect combination of lower prices and rates.

Average home prices in the city have dropped significantly compared to last year, with a 12% decrease in the average price of a single-family home compared to a year ago. The average price of a detached home in Vancouver was at its highest at $2,060,000 a year ago. Contrast this to the current price for a single-family home at $1,811,900, and it becomes apparent that Vancouver’s market is undervalued. 

Vancouver House Prices & Sales 

METRICS	Value	12-months ago	YoY Change ( %)
Average Selling Price	$1,813,100	$2,030,672	-12%
Total Transactions	880	1295	-47%
Total New Listings	3467	4736	-37%
SNLR	46.90%	54.45%	-16%
Property Days on Market	39	24	38%

Vancouver Condo Prices & Sales

METRICS	Value	12-months ago	YoY Change ( %)
Average Selling Price	$732,200	$754,166	-3%
Total Condo Transactions	928	1391	-50%
Total New Listings	3601	2889	17%
SNLR	25.80%	35.14%	-36%
Property Days on Market	35	19	46%

Vancouver Historical Housing Price Changes by Property Type

Average Selling Price	Current Price	MoM Change (%)	YoY Change(%)	Change from 3 years ago (%)	Change from 5 years ago (%)
Composite	$1,811,900	0.70%	-12.00%	22.00%	8.30%
Single Family	$1,959,200	0.70%	-11.20%	21.20%	6.00%
Townhouse / Rowhouse	$1,038,500	1.80%	-6.30%	29.80%	26.30%
Condominium	$732,200	1.60%	-3.00%	15.10%	11.70%

Top GVA Neighbourhoods for Average Price Appreciation (Detached Homes)

More generally, Vancouver, the GVA, and British Columbia real estate has seen some of the most widespread and persistent levels of price appreciation in the last 20 years. Driven by property investment, upsize buyers, immigration and provincial migration, here are the top ten GVA municipalities as of June 2023.

Neighbourhood/Suburb	Purchase Price	Year-over-Year Change (%)
West Vancouver	$3,906,000.00	14.5%
Richmond	$1,890,000.00	12.7%
North Vancouver	$1,854,000.00	11.2%
Burnaby South	$1,619,000.00	10.4%
Coquitlam East	$1,527,000.00	9.4%
Tsawwassen Central	$1,514,000.00	9.2%
South Vancouver	$1,490,000.00	8.9%
Port Moody Centre	$1,479,000.00	8.7%
Kitsilano	$1,475,000.00	8.6%
New Westminster Southwest	$1,470,000.00	8.5%

Top GVA Neighbourhoods for Average Price Depreciation (Detached Homes)

Looking at the Vancouver market and the recent rate hikes, there are neighbourhoods where pricing has continued to depreciate year-over-year.

Neighbourhood/Suburb	Purchase Price	Year-over-Year Change (%)
West Vancouver	$2,758,000	-10.80%
Langley Township	$1,595,000	-11.40%
Richmond	$1,735,000	-11.20%
Burnaby	$1,375,000	-11.30%
Coquitlam	$1,365,000	-9.70%
Delta	$1,340,000	-6.80%
Squamish	$685,000	-10.30%

Top GVA Neighbourhoods for Average Price Appreciation (Condos)

More generally, Vancouver, the GVA, and British Columbia real estate has seen some of the most widespread and persistent levels of price appreciation in the last 20 years. Driven by property investment, upsize buyers, immigration and provincial migration, here are the top ten GVA municipalities as of June 2023.

Neighbourhood/Suburb	Purchase Price	Year-over-Year Change (%)
Richmond	$882,000	4.60%
North Vancouver	$1,054,000	3.20%
West Vancouver	$1,554,000	2.30%
East Vancouver	$807,000	1.70%

Top GVA Neighbourhoods for Average Price Depreciation (Condos)

Looking at the Vancouver market and the recent rate hikes, there are neighbourhoods where pricing has continued to depreciate year-over-year.

Neighbourhood/Suburb	Purchase Price	Year-over-Year Change (%)
Downtown	$811,000	-7.30%
Kitsilano	$787,000	-6.20%
West End	$994,000	-5.90%
Yaletown	$1,153,000	-5.80%

Vancouver Rental Breakdown June 2023

Average rental cost comparisons between Vancouver and other municipalities in BC or nationally.  

Each $100K in mortgage balance costs an average of $550 per month for principal and interest on the current insured fixed rate and $620 per month on the current insured variable rate.  Rates used for calculation are those offered on insured purchases with less than a 20% downpayment over 25 years of amortization.  Each 0.25% change in mortgage rates impacts the monthly payment by $14 to $16 on a 25-year amortization.

Vancouver Rental Prices Compared to Other Canadian Cities

As the table below shows, Vanvouver is the most expensive city for rentals in Canada.

Province	Total	Bachelor	1Bdr Average	2Bdr Average	3Bdr Average	Total YoY Change
Vancouver BC	$3,146	$2,276	$2,765	$3,727	$4,200	18.70%
Burnaby BC	$2,866	$1,747	$2,286	$3,171	$3,638	19.90%
Toronto ON	$2,818	$1,987	$2,516	$3,301	$3,890	22.40%
Etobicoke ON	$2,587	$1,967	$2,285	$2,848	$2,888	21.40%
Mississauga ON	$2,549	$1,876	$2,253	$2,688	$3,047	21.50%
Brampton ON	$2,518	$1,709	$2,143	$2,624	$2,909	29.10%
North York ON	$2,497	$1,657	$2,174	$2,706	$3,376	24.10%
Kelowna BC	$2,402	$1,530	$1,932	$2,728	N/A	3.60%
Barrie ON	$2,363	$1,575	$2,019	$2,583	$2,626	12.30%
Surrey BC	$2,342	$1,938	$1,951	$2,497	$2,627	17.90%
Halifax NS	$2,215	$1,732	$2,089	$2,425	$2,890	20.10%
Victoria BC	$2,214	N/A	$2,004	$2,513	$3,325	7.30%
Kitchener ON	$2,195	$2,324	$1,944	$2,405	N/A	21.00%
Hamilton ON	$2,106	$1,640	$1,890	$2,308	$2,369	21.40%
Ottawa ON	$2,090	$1,625	$1,925	$2,363	$2,485	15.40%
Oshawa ON	$1,979	$1,348	$1,825	$2,123	$2,185	9.30%
London ON	$1,978	$1,394	$1,775	$2,123	$2,559	24.60%
Kingston ON	$1,921	$1,633	$1,700	$2,136	$2,278	13.20%
Calgary AB	$1,890	$1,276	$1,686	$2,048	$2,393	24.90%
Montreal QC	$1,876	$1,365	$1,619	$2,155	$2,455	10.90%
Winnipeg MB	$1,478	$1,066	$1,320	$1,615	$2,055	13.60%
Lethbridge AB	$1,314	$1,056	$1,212	$1,387	$1,600	17.80%
Edmonton AB	$1,300	$940	$1,147	$1,475	$1,574	11.20%
Saskatoon SK	$1,176	$877	$1,122	$1,234	$1,438	9.30%
Regina SK	$1,139	$849	$1,072	$1,290	N/A	13.90%

BC Rental Prices Compared to Canada and the Provinces

As the data below shows, BC is the least affordable province for rents among the provinces, with a population of over 1 million inhabitants.  

Average Rents by Housing Type

Province	Total	Bachelor	1Bdr Average	2Bdr Average	3Bdr Average
AB	$1,461	$981	$1,307	$1,628	$1,668
BC	$2,441	$1,904	$2,168	$2,857	$3,342
MB	$1,463	$1,066	$1,310	$1,588	$1,814
NS	$2,167	$1,723	$2,029	$2,368	$2,586
ON	$2,401	$1,802	$2,180	$2,649	$2,954
QC	$1,839	$1,329	$1,589	$2,035	$2,340
SK	$1,097	$856	$1,034	$1,173	$1,351
CA	$1,937	$1,395	$1,749	$2,127	$2,402

Rental Growth by Housing Type

Province	Total YoY Change	Bachelor YoY Change	1Bdr YoY Change	2Bdr YoY Change	3Bdr YoY Change
AB	13.40%	0.60%	13.00%	14.80%	7.30%
BC	13.20%	8.40%	11.00%	13.00%	6.40%
MB	12.60%	13.80%	14.60%	12.50%	5.60%
NS	20.80%	14.10%	22.70%	21.00%	33.60%
ON	17.10%	19.00%	16.90%	15.80%	13.60%
QC	22.20%	2.80%	9.80%	9.90%	6.00%
SK	8.00%	13.30%	8.70%	7.70%	7.00%
CA	10.90%	4.90%	10.10%	10.70%	6.80%

Frequently Asked Questions

Final Thoughts

Vancouver’s property market is set to remain strong as increases are expected for the remainder of 2023. The average home price in Vancouver has dropped significantly over the last year. However, this comes after months of record consecutive price rises during the pandemic and one of the most intense periods of price appreciation the city has ever seen. 

While the property market appears to be shedding value in Vancouver, it’s important to remember that this is relative to a long period of superheating in the area. 

If you are looking for a home in 2023, expect an imminent turnaround in the housing market over the next few months. Contact our knowledgeable and commission-free mortgage experts at nesto to help guide you through the home-buying process.

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