Can buyers afford to take advantage of this market?
The ongoing inflation and the threat of a recession in Canada have pushed home prices down and significantly reduced demand. This suggests we have entered a buyers market, but do home sales and prices reflect a market that advantages buyers?
It may come as a surprise due to the market conditions we have grown accustomed to in Vancouver, but the reality is that we have entered what is considered a balanced market in historical terms. Nationally, sales have slumped 32.2% below September of 2021, but keep in mind that 2021 numbers were very high due to the hot market that developed during the pandemic.
If we look back to pre-pandemic sales figures then the national numbers tell us that September 2022 transactions are down about 12% below the 10 year average for that month.
It’s interesting to see a small rebound in the condo and townhouse market from September to October. I’ll keep an eye on this to see if becomes a trend. It’s likely that stability will return to the condo market first due to relative affordability and first time buyers entering the market.
The waiting game
The market is in the midst of rapid adjustment. The Bank of Canada rate hikes are having the desired effect in terms of slowing inflation by making it harder to borrow money. Buyers cannot so easily qualify for mortgages and so buyers and sellers are playing the waiting game. It’s likely that the current soft but balanced market will remain quiet for a while. It’s hard to predict how long this will last without having insight into the Bank of Canada and the government’s plans for controlling inflation.
What are your options?
Motivated buyers and sellers exist in every kind of market and our current Vancouver market is no different. Our situations and needs change regardless of the economic conditions. This means that finding a match between a buyer and a seller is still possible but will take longer.
Please take some time to look over the following tables of sales statistics for Vancouver West and Vancouver East. I also have a comprehensive report for all of Metro Vancouver which is available from the link below.
October at a Glance
Vancouver West Side House
|Price per Sq.Ft||$1,080||$1,145|
|Days on market||21||19|
Vancouver West Side Condo/Townhome
|Price per Sq.Ft||$995||$1,053|
|Days on market||15||16|
Vancouver East Side House
|Price per Sq.Ft||$731||$760|
|Days on market||15||18|
Vancouver East Side Condo/Townhome
|Price per Sq.Ft||$894||$870|
|Days on market||12||11|
In depth statistics for Metro Vancouver
Download comprehensive statistics for Metro Vancouver to see the variations and trends across the market.
If you’ve been considering a move please give me a call at 604-800-3271. I’ve made Vancouver the focus of my business. I have in-depth understanding of neighbourhood markets and can help you make the best choice to achieve your real estate goals.
Find previous reports here
Photo by GraceHues Photography on Unsplash