The real estate market is busier than expected – I’m seeing some multiple offer situations but plenty of price drops and negotiation. The market hasn’t been as affected by the interest rate changes as expected, but that is in major part because good inventory is low. Having said that, different markets are experiencing different dynamics, so if you have questions on a particular market, get in touch with me!
Demand is still out there – the market hasn’t slowed because of a lack of Buyers, it’s slowed because of interest rate uncertainty – so if something is priced well there will be someone ready to buy it. There was a house in Kits that received 11 offers at the end of October – it was priced lower than its value, but not obscenely low, and it sold for a bit higher than expected value, but not what I would consider unreasonable. Otherwise, I’m seeing a lot of properties that are priced above their value, because a lot of Sellers these days are building in some negotiation room. Don’t be afraid to try an offer, especially if the property has been sitting on the market, and especially if it’s still on the market in December. I’m not seeing many “crazy” deals, but when I do it’s because the Buyer negotiated quite a bit off the price – so if you’re looking for a deal, you need to be offering. Unfortunately, there aren’t very many desperate Sellers, which is a big reason why inventory is low. Sellers hear that the market is changing and decide to put off any plans to upgrade or sell. I have a lot of clients who would like to move, but at this point they would rather hold on to their low interest rate at their current property and pursue this idea in the future.
There is another interest rate announcement planned for December – I expect another small increase and a 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 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. The properties that are having the hardest time selling are properties at the top of their market’s price point and properties that are in terrible condition (developers and flippers aren’t keen for projects given high holding costs and regular buyers would rather wait for the nice property than buy a reno in a slowing market).
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:
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,903 in October 2022, a 45.5 per cent decrease from the 3,494 sales recorded in October 2021, and a 12.8 per cent increase from the 1,687 homes sold in September 2022.
For all property types, the sales-to-active listings ratio for October 2022 is 19.3 per cent. By property type, the ratio is 14.3 per cent for detached homes, 21.6 per cent for townhomes, and 23.2 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.
Sales of detached homes in October 2022 reached 575, a 47.2 per cent decrease from the 1,090 detached sales recorded in October 2021. The benchmark price for detached properties is $1,892,100. This represents a 1.6 per cent increase from October 2021 and a 0.7 per cent decrease compared to September 2022.
Sales of apartment homes reached 995 in October 2022, a 44.8 per cent decrease compared to the 1,801 sales in October 2021. The benchmark price of an apartment property is $727,100. This represents a 5.1 per cent increase from October 2021 and a 0.2 per cent decrease compared to September 2022.
Onto the stats:
Vancouver West Real Estate Stats up to and including October 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 October 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.