It’s early November – time for the latest market update.
The prime rate (and thus variable rates) didn’t change with the October 25th Bank of Canada announcement – this wasn’t much of a surprise given what the data was saying. There is one more announcement in December, and at this point, despite being very early to call, I would imagine rates will stay the same. I don’t expect rates to start dropping until mid to late next year, and how much and how fast will really depend on what’s happening in the financial world. Keep you eyes on fixed rates though, because they will go up and down a lot more often these days since they’re based on bond yields. Hopefully your mortgage broker is on top of these changes and locking you into better pre-approval rates if the opportunity arises.
The market has been slower than normal, though there are some hot pockets in certain areas and price points. Overall it has felt like much (good) inventory hasn’t really showed up this Fall and I don’t expect inventory to increase much between now and January. It seems to me like a lot of listings are either investors, estate sales or people moving out the city (and likely with a lot of equity in their home making their next purchase a little easier). This lack of inventory has pushed Buyers to the same (good) properties which is why some properties are selling quickly and in multiple offers, and some are sitting on the market. What’s a good property? You typically know it when you see it.
Overall the condo and townhouse market has been busier than the detached market and prices have remained steady, but in my opinion this is because the properties that are selling are generally the good ones that sell for a decent prices, but inventory is starting to increase from units that are sitting on the market.
So if you want a deal, you need to look for properties that didn’t sell the first week or two it’s been on the market. There’s no harm in submitting a low offer because you never know how motivated the Seller is. Don’t wait for the unit to drop it’s price because then you could end up competing – you’re better off negotiating the price down yourself.
Here’s a snippet from the Real Estate Board’s Monthly Update:
Across all detached, attached and apartment property types, the sales-to-active listings ratio for October 2023 is 17.9 per cent. By property type, the ratio is 12.9 per cent for detached homes, 20.9 per cent for attached, and 21.5 per cent for apartments. Analysis of the historical data suggests 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 2023 reached 577, a 0.7 per cent decrease from the 581 detached sales recorded in October 2022. The benchmark price for a detached home is $2,001,400. This represents a 5.8 per cent increase from October 2022 and a 0.8 per cent decrease compared to September 2023.
- Sales of apartment homes reached 1,044 in October 2023, a 4.9 per cent increase compared to the 995 sales in October 2022. The benchmark price of an apartment home is $770,200. This represents a 6.4 per cent increase from October 2022 and a 0.2 per cent increase compared to September 2023.
- Attached home sales in October 2023 totalled 356, a 6.6 per cent increase compared to the 334 sales in October 2022. The benchmark price of a townhouse is $1,100,500. This represents a 6 per cent increase from October 2022 and a 0.2 per cent increase compared to September 2023.
Onto the stats:
Vancouver West Real Estate Stats up to and including October 2023
There was an ever so slight increase in inventory, but these numbers are a little closer to average. Prices were pretty steady, though detached houses have been gaining steam, which is promising for the market considering that they dropped the most last year.
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 2023
Inventory saw a slight uptick in numbers but as you can see it’s still on the low end compared to the last few ears (outside of the initial Covid drop). Prices remained pretty steady overall.
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
As always, if you have questions on a particular kind of property or location, get in touch with me!
And 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.