The real estate market is moving along at a decent pace given the holidays and the interest rates increases – different types of properties and markets are experiencing different levels of activity. Overall, I’ve seen some people pick up great properties for pretty fantastic prices compared to the last year or so. If you have questions on a particular market, get in touch with me!
After increasing rates by 0.5% in December, the Bank of Canada has signalled that they are going to take a wait and see approach when it comes to future rate increases or decreases. I don’t think we’ll see a decrease for months, but I also don’t expect rates to increase significantly from here.
It’s a slow market (Sellers aren’t keen to sell if they know the market is mediocre) and no one is keen to sell during the holidays (historically December is not a great time for Sellers) so inventory has been low, especially good inventory. Sales have been down as expected – with rates around the 5-6% market real estate has gotten a lot more expensive in the last few months. Prices have dropped to accommodate, but it’s harder for Buyers to qualify, and anyone who has an existing low rate is finding it hard to take on a higher rate with a bigger mortgage. I expect to see a nice influx of inventory in the new year. I don’t think Buyers will be back with a vengeance though, so it will be interesting to see how desperate Sellers get when to comes to dropping their price. For the most part I think it’s very situational – certain Sellers will be feeling the pinch (particularly investors who are on a variable rate) and in general reno projects aren’t appealing to Buyers right now so anything that needs major renovations will be a tough sell.
As a Buyer, how can you find the best deal? Well, you have to be offering! There are a lot of Sellers out there who won’t drop their price to a low number, but they’ll accept it if it comes. I always like to remind Buyers that you need to find the balance between a good deal and a property you actually like, because it costs a lot of money to buy and sell real estate so if you buy a “deal” but want to sell it in 2 years, it could end up costing you more than if you bought the property you really liked that was a little more expensive. You live in your home every day and it has a serious affect on your lifestyle – make sure you choose wisely!
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 3,055 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in November 2022. This represents a 22.9 per cent decrease compared to the 3,964 homes listed in November 2021 and a 24.2 per cent decrease compared to October 2022 when sellers listed 4,033 homes.
“With that said, from a long-term structural standpoint, the current pace of listings and available inventory remain relatively tight when considered against a backdrop of continued in-migration to the province. With the recently announced increase in federal immigration targets, the state of available supply in our market remains one demand surge away from renewed price escalation, despite the inflationary environment and elevated mortgage rates.”
For all property types, the sales-to-active listings ratio for November 2022 is 17.6 per cent. By property type, the ratio is 13.2 per cent for detached homes, 19.7 per cent for townhomes, and 20.8 per cent for apartments.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,131,600. This represents a 0.6 per cent decrease over November 2021, a 10.2 per cent decrease over the last six months, and a 1.5 per cent decrease compared to October 2022.
Onto the stats:
Vancouver West Real Estate Stats up to and including November 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 November 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, getting a 1 to 2 year mortgage amortization, porting your existing mortgage or understanding how any further 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.