It’s September – a new market and a new announcement.
The Bank of Canada announced today that they will be holding rates. They have not ruled out an increase in the future if they feel it’s needed to curb inflation. This rate hold comes after 10 rate increases in the last 12 meetings (starting March 2022). The BoC had hopes of having inflation down to the 3% by this time, with the overall goal being 2% (inflation numbers dropped to 2.8% in June and increased slightly to 3.3% in July). The next rate announcement is October 25th but most economists believe that this is it for rate increases in Canada and are now onto speculating when they’ll start cutting rates next year (with mid to late next year being the assumption). Right now, rates are in the low 5%’s to high 6%’s depending on fixed vs variable, length of amortization and amount of mortgage (bigger mortgages get better rates).
Overall, the August market was busier than normal. Properties would still receive multiple offers if they were priced appropriately. I also believe there are a number of Buyers with a decent fixed rate locked in until sometime in Sept or Oct and wanted to buy a property before that rate expired.
I expect this Fall market to be slower than this past Spring, but still moving. Anything priced high compared to recent sales will be a tough sell, as I find Buyers aren’t keen to try negotiating on properties that feel especially overpriced, but anything priced low or reasonable should sell within a few weeks. If you like a property that feels over priced – offer on it! Sometimes Sellers are more willing to accept a lower price than they are willing to drop the price on MLS.
I bet this first week of September will be slow with new listings, with a bigger increase coming the second and third week of September. This Fall market tends to slow down in early December as everyone starts focusing on the holidays.
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 2,296 in August 2023, a 21.4 per cent increase from the 1,892 sales recorded in August 2022. This was 13.8 per cent below the 10-year seasonal average (2,663).
“It’s been an interesting spring and summer market, to say the least” Andrew Lis, REBGV’s director of economics and data analytics said. “Borrowing costs are fluctuating around the highest levels we’ve seen in over ten years, yet Metro Vancouver’s housing market bucked many pundits’ predictions of a major slowdown, instead posting relatively strong sales numbers and year-to-date price gains north of eight per cent, regardless of home type.”
Across all detached, attached and apartment property types, the sales-to-active listings ratio for August 2023 is 23.9 per cent. By property type, the ratio is 14.2 per cent for detached homes, 30.3 per cent for townhomes, and 31.9 per cent for apartments.
Sales of detached homes in August 2023 reached 591, a 13.2 per cent increase from the 522 detached sales recorded in August 2022. The benchmark price for a detached home is $2,018,500. This represents a 3.3 per cent increase from August 2022 and a 0.3 per cent increase compared to July 2023.
Sales of apartment homes reached 1,270 in August 2023, a 27.4 per cent increase compared to the 997 sales in August 2022. The benchmark price of an apartment home is $770,000. This represents a 4.4 per cent increase from August 2022 and a 0.2 per cent decrease compared to July 2023.
Attached home sales in August 2023 totalled 422, an 18.9 per cent increase compared to the 355 sales in August 2022. The benchmark price of an attached home is $1,103,900. This represents a 3.9 per cent increase from August 2022 and a 0.1 per cent decrease compared to July 2023.
Onto the stats:
Vancouver West Real Estate Stats up to and including August 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 August 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 for East Vancouver
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
Inventory last fall was pretty low after the interest rate increase throughout the Spring. Inventory was low for a few reasons: a lot of Sellers likely thought the market would be slow so they decided not to sell and some Sellers couldn’t afford to move up to a new place (and thus sell their current place) so they decided to stay put. I think this year we’ll see a few more investor Sellers list their property, but otherwise I think inventory will remain on the lower end. 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 (you can lock in a fixed rate) 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.