New Westminster remains one of the more affordable places in Metro Vancouver to buy a home — if indeed you can use the word “affordable” in a market where a typical single-family home will still set you back nearly $1.5 million.
But what are home prices like, really? And what does it mean for potential buyers?
We’re diving into some stats from the Real Estate Board of Greater Vancouver (REBGV) to find out.
According to October 2022 stats, home sales are trending well below historical averages across the region — and prices are declining accordingly.
“Inflation and rising interest rates continue to dominate headlines, leading many buyers and sellers to assess how these factors impact their housing options,” said Andrew Lis, REBGV’s director for economic and data analytics, in a press release. “With sales remaining near historic lows, the number of active listings continues to inch upward, causing home prices to recede from the record highs set in the spring of 2022.”
New Westminster is no exception.
The benchmark price for residential sales in New West has dropped 6.5 per cent overall in the past six months, and a full 7.6 per cent for single-family detached sales. Townhouses have taken less of a hit, with a 3.8 per cent drop, while apartments have dropped 6.0 per cent in the same time period.
So that’s good news if you’re wanting to buy, right?
Well — sort of.
Overall benchmark price lowest in New Westminster: $809,800
Even with the declining prices, real estate in New Westminster comes with some hefty price tags.
The overall residential benchmark price (for October 2022) is now at $809,800. Single-family homes come in at a benchmark of $1.497 million, while townhouses have a benchmark price of $917,500 and apartments are at $632,200.
High as those prices may be, those benchmarks remain among the lowest in the region.
New Westminster’s overall benchmark for residential properties is, in fact, the lowest in the 21 areas represented in REBGV stats. It’s one of only six areas — with Burnaby North ($994,400), Port Coquitlam ($911,000), Pitt Meadows ($873,100), Maple Ridge ($941,200) and the Sunshine Coast ($835,900) — where the overall benchmark remains under $1 million.
For single-family detached homes, New Westminster also comes in the lowest third of the 21 areas — higher than just Bowen Island, Ladner, Maple Ridge, Pitt Meadows, Port Coquitlam and the Sunshine Coast. The Sunshine Coast has the lowest benchmark price for single-detached homes, at $917,000 — the only area under $1 million.
When it comes to townhomes, the city again remains in the lowest third. You’ll find a lower benchmark price in a few of New West’s close neighbours, however — including Burnaby East, Burnaby North and Port Coquitlam. Maple Ridge, Pitt Meadows and the Sunshine Coast also came in lower than New West.
The same is true for apartments, where New Westminster’s benchmark price was higher than just six other municipalities — most of which are considerably less central. You could find a lower benchmark in Maple Ridge, Pitt Meadows, Port Coquitlam, Squamish, the Sunshine Coast and Whistler.
But what does New Westminster’s relative “affordability” mean in the context of real estate sales?
Real estate sales numbers down in New Westminster
The REBGV stats show sales have definitely cooled in New Westminster compared to last year.
The number of homes sold in New West in October was considerably lower than the same month the year before. In October 2022, MLS listings saw nine detached homes, four attached homes and 58 apartments sold in New Westminster — compared to 29 detached homes, 17 attached homes and 118 apartments in October 2021.
Year-to-date sales for January to October 2022 were also considerably behind the pace set in 2021. This year, New Westminster saw 178 detached homes, 123 attached homes and 810 apartments sell in the first 10 months of the year — compared to 302 detached homes, 192 attached homes and 1,158 apartments in 2021.
That’s consistent with the regional trend.
The REBGV reported a total of 1,903 homes sold in the region in October 2022, a full 45.5 per cent decrease from the 3,494 sales recorded in October 2021.
Lis noted this fall has seen a “marked departure” from recent years, which he characterized as having had a “frenetic pace of sales amplified by scarce listings on the market.”
The current situation sees buyers benefiting from more selection and a slower pace of sales.
“This environment provides buyers and sellers more time to conduct home inspections, strata minute reviews and other due diligence,” Lis said. “With the possibility of yet another rate hike by the Bank of Canada this December, it has become even more important to secure financing as early in the process as possible.”
All of which leads to the main question for most prospective homebuyers: How much would a mortgage set you back in New Westminster?
How much money would you need for a mortgage payment in New Westminster?
Obviously, many variables come into play with mortgages — including the type of mortgage, interest rates, the amount of your down payment, and whether you’re buying for the first time or moving from an existing property. But, as a guideline, we used an online BMO mortgage calculator to estimate mortgage payments for New Westminster’s benchmark prices.
For that single-family detached home at $1.497 million? Well, if you can somehow manage the standard 20 per cent down payment (you’ll need to have $299,400 available), you’re looking at a monthly payment of $8,015 (based on a five-year fixed rate of 6.49 per cent).
That $917,000 townhouse, meanwhile, would set you back $4,912 a month (assuming the full 20 per cent down payment, or $183,500). If you reduce that down payment to 10 per cent (or $91,750), then your monthly payment would bump up to $5,697 or so.
If all that’s still too much, well, you have one more option.
Remember that $632,200 apartment? With 20 per cent down payment, you’ll be looking at about $3,385 a month. If you can only swing 10 per cent — well, then you’re looking at about $3,926 a month.
Back to renting? Well, that’s not cheap, either — but the September average of $1,953 for a one-bedroom and $2,212 for a two-bedroom (according to Rentals.ca) is at least less worse than that hypothetical mortgage.
How real estate prices have changed over time
Are you a would-be homebuyer facing astronomical prices while hearing from other (usually older) homeowners about how they managed to buy their home back in the day?
A few numbers from the REGBV might help to put things into perspective.
The board provides a “price index” for homes, based on an index of 100 as of January 2005.
Since then, every category in New Westminster has gone up more than 3.5 times in value — with a price index of 364.3 overall; 374.3 for single-family detached; 390.6 for townhouses; and 379 for apartments.
In dollar values, that means a benchmark home, overall, in January 2005 was worth $222,289.
A benchmark single-detached home was worth $400,053, while a benchmark townhouse was worth $234,895. As for a benchmark apartment? That would have been $166,807.
Unless your income has, in fact, quadrupled since 2005? Well, today’s homebuyers aren’t in the same position as buyers were just 17 years ago — in fact, it’s not even close.
Houses for sale right now in New Westminster
If, after all of that, you’re not discouraged from the idea of buying, what’s available right now?
REALTOR.ca is currently showing a wide range of options in New West.
New Westminster homes under $500,000
You’ll find multiple options (21 as of the writing of this post) listed for less than $500,000 — all of which, of course, are apartments. The cheapest of those is a 465-square-foot studio apartment in an adult-focused building for $208,000; you can also come in just under the half-million-dollar mark, at $499,999, for a newer one-bedroom penthouse unit.
$500,000 to under $1 million
You’ll find 150 listings in what we’ll call the “mid-range” of New Westminster real estate, with abundant offerings of one- and two-bedroom apartment units, and a few three-bedrooms options for good measure. You can also find some townhouse/row home options.
As of the writing of this post, you can find just one single-detached home in this range: a two-bedroom Sapperton home listed for $999,000 on what’s billed as a “hold for development” property.
$1 million to under $1.5 million
If you’re looking for a single-detached home, this is where your search will start. Don’t expect a large home for this price tag; you’re likely looking at a smaller-footprint, two- or three-bedroom, older home. You will likely be able to find larger or newer options in Queensborough, but less so in mainland New Westminster. However, you do have a wide range of choices, with 33 options available in this price range.
$1.5 million to under $2 million
With 25 options in this price range, this is where you’ll start moving into larger or newer homes or those in the city’s more “premium” neighbourhoods (hello, Queen’s Park). Expect to get into the upper end of this price range for the larger (2,500-square-feet-plus) homes.
New Westminster real estate over $2 million
You can find 36 listings in the north-of-$2-million range, and for the most part, you’ll find one of two options: It’ll be a “higher-end” home, newly built or redone with some premium features (this is where you’re getting into dream kitchens, media rooms and the like). Or, it’ll be a property awaiting future development (like a land assembly on Sangster Place).
Follow Julie MacLellan on Twitter @juliemaclellan.
Email Julie, [email protected]
