While the Spring real estate flurry began super early this year, the weather has finally caught up along with the cherry blossoms.
The month of March showed frenetic activity in the townhome and condo sector while the detached market slowed in sales and pretty much across the board, increased in inventory. Many buyers have finally been priced out of the single family detached market and are opting for a townhome to give them the desired space. As our older residents become vaccinated, and downsizing seems an easier proposition, we are seeing more detached homes on the market with the corresponding increase in condo purchases.
Interesting to note that in the attached market, sales outstrip evident inventory because of new builds gaining their share of buyers. These sales are taking place within 1 week of listing. Price is still a factor as the 2 cities bucking this trend are Burnaby and New Westminster where only a little over 70% and 85% respectively of the attached inventory is selling, and taking a little longer for those sales to happen. Still an excellent market, but demonstrates the trend to move east for a bigger bang for the buyers’ bucks.

While the Government is advocating for a greater number of rentals, the reverse is happening as unexpected consequences of Government restrictions on rent increases. Small time landlords cannot withstand increases in insurance, property taxes, maintenance & financing costs, while seeing no end to the rent freeze. Consequently, when they sell now, these properties are being bought by purchasers intending to move in. Very few small time investors can afford to enter this fray, leaving a net loss in number if rentals.

The wild card for April and May sales is the Government announcement to increase the severity of the stress test for buyers in June. So we can look forward to buyers with currently pre approved mortgages, along with those who will now scramble for quick pre approval, to be buying whatever they can before the June deadline. Not exactly a measure “cooling” the market in the short run!! No wonder real estate is the most discussed topic, second only to the pandemic!

If a real estate move and discussion is on your mind, count us in.
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Generations Real Estate Partners:-
Michelle Hawthorne, Scott Johnson, Ray Harris, Shane Goutsis and Sheila Francis.