Well it does seem like it is still summer in the real estate market unfortunately. Usually July and August are NOT good months for real estate sales and that was particularly so this year as sales continued the decline which started last Spring. Usually after kids are back to school and everyone else back to work after their vacations, we see a significant bump up in the sales volume. This September we have had record weather (I was born here and I don't remember anything like it) and unfortunately we have had sales levels similar to what we would see in the summer-or worse.
Interest rates are up and many buyers have had their rate holds expire. We are also expecting the new federal law restricting foreign buyers AND the provincial law giving buyers the right to back out of what would otherwise be binding contracts to purchase, coming in January 2023. Both of these measures could push sales volume and/or prices down further.
The good news for sellers is that the sky has not fallen and while prices are down, they are still VERY high relative to where they were 2 years ago.
The good news for buyers is that although rates are up, prices are down a bit and the selection is up significantly...and subjects are a thing buyers can now use to protect themselves.
The good news for those buying and selling is that if you are doing both in the same market, it usually all balances out.
In September we saw:
-sales were down 46.4% from September 2021
-sales were down 9.8% from a month earlier, August 2022.
-sales were 35.7% lower than the 10-year average for September
-the number of homes listed for sale was up 8% when compared with September 2021
-the number of homes listed for sale was up 3.2% when compared to a month earlier, August 2022
-detached home sales were down 44.7% from September 2021
Despite significant drops in sales volume in Greater Vancouver, prices of detached homes in the region were down only slightly from August 2022 at 2.1% less; however prices were still up 3.9% when compared to September 2021. So sellers are still doing well on prices year over year based on the current evidence. However in the past six months, the benchmark price is down 8.5%.
Depending on the type of home and where it is located, the price drops vary. I am happy to provide information on your particular home if you are interested.
The key take-aways have not changed from last month. One thing we are seeing more of is those wishing to buy real estate investment properties are being more interested in the current market. I am an advocate of using real estate as an investment vehicle (partly because I understand it and I do not understand other markets) so I am happy to assist in answering questions on how to invest after buying one's principal residence.
The bottom line is the market has not changed much but it has changed enough to make a difference in where the opportunities are to be found.
As always, I am happy to discuss your individual situation as obviously the factors at play differ for each situation. If you have friends or family struggling with what to do in this market, please tell them to call me to discuss.
Enjoy our summer in October and Happy Thanksgiving!
