November 2022: Market Update

November 2022 Market Update:

“The current market has its challenges but we are starting to see both sellers and buyers adjusting to the market after a series of interest rate increases, and are often coming together to work out a deal. We are still seeing some multiple offers in certain segments of the market. This week we are anticipating yet another increase for the Bank of Canada and it will be interesting to see if this will be the last rate hike. “With the most recent core inflation metrics showing a stubborn reluctance to respond significantly to the furious pace of rate increases, the Bank of Canada may choose to act more forcefully to bring inflation back toward target levels.” Andrew Lis, REBGV’s director, economics and data analytics said. “While it’s always difficult to predict what the bank will do with certainty, this persistent inflationary backdrop sets up the December 6 rate announcement to be yet another increase, making holiday-season home sales something many people may end up foregoing this year.”

Having constant conversations with clients, staying on the same page and being patient in a shifting market is crucial in this market. December is generally the slowest month of the year and listings currently on the market that haven’t sold typically come off the market to give it a “break.” Inventory levels are something to monitor as we head into the new year and there could be some windows of opportunity for some sellers. “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.”

There are a few unknowns as we head into 2023 that could impact the market. Recently announced changes by the Provincial Government to the Province’s Strata Property Act, a potential foreign buyer ban in the new year and further policy changes to the real estate industry could all have influence on the market. “The market continues the trend of shifting toward historical averages and typical seasonal norms,” Lis said. “Whether these trends continue will depend on looming economic factors and forthcoming housing policy measures on the horizon, which hold the potential to reignite uncertainty in our market.”

We often find the statistics can be broad, and you might wonder “How does this relate to my home?”  We have broken down the sales activity for Downtown Vancouver, East Van and the Westside in the hopes that you can better understanding what’s really going on.

Downtown Vancouver: 

• Market Type: Balanced Market at 14% Sales Ratio average (1.4 in 10 homes selling rate)
• Housing Prices: Homes are selling on average 4% below list price
• Most Active Price Band: $400,000- $500,000 with average 90% Sales Ratio (Sellers market)
• Opportunity for Buyers: Homes between $2.25 mil to $2.5 mil in Coal Harbour & 3 bed properties
• Opportunity for Sellers: Homes in Westend and up to 1 bed properties

Vancouver Westside: 

Detached Housing

• Market Type: Buyers Market at 9% Sales Ratio average (9 in 100 homes selling rate)
• Housing Prices: Homes are selling on average 100% of list price
• Most Active Price Band: $2.25 mil to $2.5 mil with average 56% Sales Ratio (sellers market)
• Opportunity for Buyers: Homes between $4.5 mil to $5 mil, Shaughnessy & up to 2 beds/ max 5 bed properties
• Opportunity for Sellers: Selling homes in Kerrisdale, Quilchena & 3 to 4 bed properties

Attached Housing

• Market Type: Balanced Market at 17% Sales Ratio average (1.7 in 10 homes selling rate)
• Housing Prices: Homes are selling on average 3% below list price
• Most Active Price Band: $500,000 to $600,000 with average 47% Sales Ratio (Sellers market)
• Opportunity for Buyers: Homes between $1.75 mil to $2 mil in Quilchena, South Cambie, South Granville & minimum 4 bed properties
• Opportunity for Sellers: Selling homes in Fairview and up to 1 bedroom properties

Vancouver Eastside: 

Detached Housing

• Market Type: Balanced Market at 13% Sales Ratio (1.3 in 10 homes selling rate)
• Housing Prices: Homes are selling on average 5% below list price
• Most Active Price Band: $1.25 mil to $1.5 mil with average 53% Sales Ratio (Sellers market)
• Opportunity for Buyers: Homes between $2.75 mil to $3 mil, Collingwood, Knight and up to 2 bedroom properties
• Opportunity for Sellers: Homes in Mount Pleasant and up 5 to 6 bedroom properties

Attached Housing

• Market Type: Sellers Market at 21% Sales Ratio average (2.1 in 10 homes selling rate)
•  Housing Prices: Homes are selling on average 2% below list price
• Most Active Price Band: $400,000 to $500,000 with average 39% Sales Ratio (Sellers market)
• Opportunity for Buyers: Homes between $900,000 to $1 mil, Victoria and minimum 4 bedroom properties
• Opportunity for Sellers: Homes in Strathcona and up to 1 bedroom properties

Get in touch with us today to better understand your unique situation and get honest advice on how your home fits within the overall picture. It’s important to ensure you’re getting the right advice with your best interests at heart.

Let’s chat over a complimentary coffee and see how we can help with any questions you may have!

This report data was captured on December 3, 2022 from the Real Estate Board of Greater Vancouver MLS®. Refer to our YTD reports for sustained periods of the Sales Ratio %. The accuracy and completeness of the information is not guaranteed. In providing this information SnapStats® or Resident Experts do not assume any responsibility or liability.