With low inventory numbers and static interest rates, this month’s update is really similar to last month: Good properties priced well will get multiple offers because Buyer’s are back but inventory has increased enough to satisfy the demand. Buyers are smart enough to know when something is over priced despite a busy market, so those homes are sitting on the market. As always, if you’re looking for real estate I would suggest you try an offer on these properties – sometimes you’ll run into a overconfident Seller who is unwilling to budge, and sometimes you’ll find a desperate Seller that is willing to settle. For homes receiving multiple offers, I’m generally not seeing surprisingly high sale prices so it’s not as competitive as it has been in the past.
With the new “recession period”, a lot of Buyers are finding it easier to go in subject free since they have the automatic 3 business day recession period to back out if something comes up after. The Real Estate Board wanted to give Buyers are out if they had any regrets in submitting a subject free offer, but it’s now leading more Buyers to submit a subject free that may not have otherwise, that they may not be truly ready to submit, so ironically, Buyers are taking more risks now than they were before. And if they realize they did make a mistake, it’ll cost them 0.25% of the list price. I’ve only heard of a couple scenarios of Buyers backing away during the recession period, so I don’t know how useful it’s been. It’s been a source of frustration as you don’t learn the sale price of a competitive listing until the 4th business day after they reviewed offers – which makes it harder to keep up with the market.
I’m still hoping we’ll see an big increase in inventory, but if it hasn’t come yet I don’t think we’ll see it this Spring. We’ll continue to see more inventory, but it won’t be enough to swing the market back into Buyer’s Market territory. Fall might be a little busier as potential Sellers have time to plan their buy and sell now that the market is more active. I expect 2024 to be a busy year of folks buying and selling because interest rates might be a little better and anyone with a sub-3% rate now will need to re-negotiate soon anyways (whereas right now, many folks are hesitant to upgrade to a new property because they’ll be taking on a bigger mortgage at a higher rate).
I keep saying inventory is low, but what are the numbers? Compared to this time last year:
– Vancouver West New Listings of condos down 31%, townhouses down 27% and houses down 44%.
– Vancouver East New Listings of condos down 21%, townhouses down 41% and houses down 34%.
This indicates that a lot of folks are staying put and Buyers have a lot less to choose from each week than they have in the past. We seeing the lowest “new listings” this Spring (especially for houses and condos) than we’ve seen in the last 10 years. This low level of inventory is leading to some rebound in prices (though they are still down from the height last Spring). it will be interesting to see where the market goes from here. With interest rates still high, I don’t expect to see a significant increase in prices this year.
If you’re looking for a deal, look to areas outside of Vancouver: they slow down first in a down market and pick up last in an increasing market, so you can still find some deals in areas like Squamish, White Rock, Coquitlam, etc. If you have questions on a particular kind of property or location, get in touch with me!
As a Buyer, how can you find the best deal? 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 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!
As for Sellers and inventory – I think we’ll see an expected increase in inventory this Spring – but I don’t think it’ll be higher than average. 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:
“When we released our market forecast in January, we were one of the only organizations taking the contrarian view that prices were likely to appreciate in 2023,” Lis said. “And what we’re seeing unfold so far this year is consistent with our prediction that near record-low inventory levels would create competitive conditions where almost any resurgence in demand would translate to price escalation, despite the elevated borrowing cost environment. At the crux of it, the issue remains a matter of far too little resale supply available relative to the pool of active buyers in our market.”
Sales of detached homes in April 2023 reached 808, a 16.3 per cent decrease from the 965 detached sales recorded in April 2022. The benchmark price for detached properties is $1,915,800. This represents an 8.8 per cent decrease from April 2022 and a 2.9 per cent increase compared to March 2023.
Sales of apartment homes reached 1,413 in April 2023, a 16.5 per cent decrease compared to the 1,693 sales in April 2022. The benchmark price of an apartment property is $752,300. This represents a 3.1 per cent decrease from April 2022 and a two per cent increase compared to March 2023.
Attached home sales in April 2023 totalled 500, a 13.5 per cent decrease compared to the 578 sales in April 2022. The benchmark price of an attached unit is $1,078,400. This represents a 6.1 per cent decrease from April 2022 and a 2.1 per cent increase compared to March 2023.
Onto the stats:
Vancouver West Real Estate Stats up to and including April 2023
The sales to active ratio is at least 13% across the Westside, busiest for condos and houses, though townhouses weren’t as active. Be prepared to compete on houses below $3-million, Townhouses under $2-million, 2 beds under $1.2-million and 1 beds under $700k.
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 April 2023
The sales to active ratio is at least 20% across the Eastside, which is a strong Seller’s Market, especially for condos and townhouses which are both over 30%. Expect to be in competition for any 1 beds under $600k, 2 beds under $900k, 3 beds under $1.5m and houses under $2-million.
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. I love thinking critically and answering questions, so I’m always happy to help.
Considering that the market is busier than expected, make sure your mortgage approval is up to date and that your mortgage broker can work quickly, if you need to submit a competitive offer. 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 3 year mortgage amortization, porting your existing mortgage or understanding how any further changes to interest rates will affect you. Times are changing quickly so you need a broker who takes the time to understand your goals and current financial outlook. Email me if you need a referral to a great mortgage broker.