Happy October Everyone! I hope you’ve been enjoying the sunny days we’ve been lucky enough to have recently.
The real estate market is chugging along. Different areas are experiencing different market dynamics right now, so this review is primarily about Vancouver, but I’ve had some recent experience in the greater Vancouver area.
As expected, inventory is fairly low right now and pricing strategy will have a big impact on how a sale proceeds. Anything priced on the higher end will sit on the market – in my experience it can be hard to encourage Buyers to submit an offer to start the negotiation process. Many Buyers want to know it’s a good price before bothering to offer. Anything priced reasonably will sell fairly quickly and anything priced low will still get multiple offers – and this goes for condos to houses and as far as Langley in my recent experience.
Demand is still out there – the market hasn’t slowed because of a lack of Buyers, it’s slowed because of financial uncertainty – so if something is priced well there will be someone ready to buy it. There are two more interest rate announcements this year, and small increases are expected to continue curtailing inflation so I expect to see some small decline in prices over the next few months. Expect interest rates to be in the 5-6% range for a couple years. I have different thoughts on how to approach this market depending on what you’re looking to buy and why you’re looking to move. If you’re looking for something quite unique – i.e. a house that works for a multi generational family, or a unit with amazing outdoor space, or have a small area that you’re considering – it’s worthwhile to buy in this market as they can be few and far between and I don’t expect any major changes to price on top of what we’ve already seen. These markets are also good opportunities to upgrade since the higher priced property has likely come down in price more than your lower priced sale, narrowing the gap in price difference.
Sellers need to consider putting a little more effort into their property – paint it white if the walls are currently colourful, replace the floors if they aren’t modern and stage it if it’s vacant.
If you’re thinking about selling your property, give me a call to chat about value, pricing strategy and the sale process. There are plenty of details to chat about – including timing, value, staging and your potential purchase – so don’t hesitate to contact me if you’d like to get started kristi@realestatevancity.ca or 778-387-7371. The better you understand your current value and what Buyers may be looking for, the more successful your sale. There is a finesse to dealing with a slowing market.
Here’s a snippet from the Real Estate Board’s Monthly Update:
There were 4,229 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2022. This represents an 18.2 per cent decrease compared to the 5,171 homes listed in September 2021 and a 27.1 per cent increase compared to August 2022 when 3,328 homes were listed.
For all property types, the sales-to-active listings ratio for September 2022 is 16.9 per cent. By property type, the ratio is 12.4 per cent for detached homes, 18.4 per cent for townhomes, and 20.9 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,155,300. This represents a 3.9 per cent increase over September 2021, an 8.5 per cent decline over the past six months, and a 2.1 per cent decline compared to August 2022.
Onto the stats:
Vancouver West Real Estate Stats up to and including September 2022
HPI Price for Vancouver West
*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House*
Average Sales Price for Vancouver West
Median Percentage of Original Price for Vancouver West
New Listings for Vancouver West
Total Inventory for Vancouver West
Total Sales for Vancouver West
Sales to Active Ratio for Vancouver West
Median Days on Market for Vancouver West
East Vancouver Real Estate Stats up to and including September 2022
HPI Price for East Vancouver
*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House*
Average Sales Price
Median Percentage of Original Price for East Vancouver
New Listings for East Vancouver
Total Inventory for East Vancouver
Total Sales for East Vancouver
Sales to Active Ratio for East Vancouver
Median Days on Market for East Vancouver
What questions do you have? Send me an email or give me a call: kristi@realestatevancity.ca or 778-387-7371.
If you haven’t yet spoken with a mortgage broker, get that process started. It’s helpful to know your options when it comes to owning two properties via a bridge loan, porting your existing mortgage or understanding how any changes to interest rates will affect you.
If you have any questions as you start thinking about your real estate goals for this year, don’t hesitate to ask.