Happy August everyone! It’s my birthday month so I’m feeling great, enjoying the dog days of summer and my ripening tomatoes.
The market has been mort active than I expected, especially given the recent rate increases. I expect August to be slower than July though, as it is every year, with fewer new listings and fewer competitive scenarios. The market will pick up again after Labour Day in September. How will it pick up? Well it will depend on if there’s another rate increase in September (I bet no), and if there is a significant increase in inventory (I bet we’ll see an increase). Last fall was slow after the consistent rate increases and unfortunate reality that it was harder for Buyers to qualify, and I expect this Fall to be a slower market compared to this past Spring, so there should be some opportunities for Buyers.
Prices increased in every market except Westside townhouses, which was a bit of a surprise given the recent interest rate increases. If we see an increase in inventory we’ll see fewer competitive offer scenarios. Buyers – don’t forget that you can negotiate prices if a unit has been on the market for a bit, or if it seems to be priced high. Push for the number that would make you comfortable to buy, rather than wait for the Seller to drop to it.
Here’s a snippet from the Real Estate Board’s Monthly Update:
“What’s interesting to see in the current market environment is that, while the Bank of Canada rate hike this July was only a quarter of a per cent, mortgage rates are now at the highest levels we’ve seen in Canada in over ten years,” said Andrew Lis (REBGV director of economics and data analytics).
“Yet despite borrowing costs being even higher than last July, sales activity surpassed the levels we saw last year, which I think says a lot about the strength of demand in our market and buyers’ ability to adapt to and qualify for higher borrowing costs.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,210,700. This represents a 0.5 per cent increase over July 2022 and a 0.6 per cent increase compared to June 2023.
Sales of detached homes in Metro Vancouver in July 2023 reached 681, a 28.7 per cent increase from the 529 detached sales in July 2022. The benchmark price for a detached home is $2,012,900. This represents a 0.6 per cent increase from July 2022 and a 1.1 per cent increase compared to June 2023.
Sales of apartments in Metro Vancouver reached 1,281 in July 2023, a 20.7 per cent increase compared to the 1,061 sales in July 2022. The benchmark price of an apartment home is $771,600. This represents a 2.6 per cent increase from July 2022 and a 0.6 per cent increase compared to June 2023.
Sales of attached homes in Metro Vancouver in July 2023 totalled 466, a 53.3 per cent increase compared to the 304 sales in July 2022. The benchmark price of an attached home is $1,104,600. This represents a 1.2 per cent increase from July 2022 and a 0.5 per cent increase compared to June 2023.
Onto the stats:
Vancouver West Real Estate Stats up to and including July 2023
Total inventory increased as the number of sales and new listings dropped, so the market is showing signs of slowing down from the recent activity levels.
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 July 2023
All markets saw an increase in the HPI Price despite a drop in new listings and sales. Overall the market is moving quickly for anything priced low to reasonable, though anecdotally I can tell you that the higher end market is still slow.
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
I imagine the last few weeks of August will be slow, as usual. If you’re looking for real estate – keep looking! You won’t have as much inventory to choose from but lots of other buyers stop looking as well, so it’s typically a good time to find a bit of a deal with little competition. If you have questions on a particular kind of property or location, get in touch with me!
As for Sellers, 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 an ever-changing market.
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 (which are still happening in certain scenarios!). 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.