From the local perspective, there are subtle shifts in the market – this is no longer a market where every home, regardless of flaws in location and upkeep, sells quickly for an over-list price! Daniel John, newly minted chair of Greater Vancouver Real Estate Board, explained that market activity was at “a calmer pace than we experienced 12 months ago” , but last month’s sales still exceeded the 10 year March sales average by 25.5%.
Under-supply continues to be an influential issue with a current inventory at less than half of what is needed to create a balanced market. As interest rates rise, we may anticipate a short rush from buyers with pre-approved mortgages locked in at a lower rate. Beyond that we need to watch the housing supply and interest rates as both will dictate the immediate future of our market.
Our nearby local markets are showing a continued strong attached market where sales exceed the number of listed homes, demonstrating the positive effect of new builds. The small Pitt Meadows market leads the pack with 16.7 attached homes selling for every 10 listed. New Westminster and Port Coquitlam are both selling 13.1 units for every 10 listed.
Reviewing the graphs, it is evident that even where there is a slight increase in inventory, the number of sales increases more. Port Moody detached market made a distinct comeback last month with an 84% sales ratio – Heritage Woods being a popular spot. The move east remains a trend with Port Coquitlam and Maple Ridge experiencing continued growth in every type of housing.
Looking at the future of housing through the eyes of Housing Minister and Attorney General, David Eby, last week was interesting and encouraging. The need to expedite our municipal approval processes was front and centre as we look at anywhere between 5,000 and 60,000 immigrants from Ukraine coming our way to Canada. This follows the largest inmigration in 60 years to B.C last year – as 100,000 people moved into this province from other parts of Canada. Eby described the backlog as “significant”.
Once municipalities have done due diligence with public hearings and input to create their official community plans, why do we need more public hearings for a development which is adhering to the official community plan? A great question posed by Minister Eby in looking at how municipalities could assist in being more timely with building homes of every type to accommodate our future & current citizens. The ministry is also reviewing their partnership to encourage subsidized housing and more rental accommodation. Increased density around transit hubs – particularly SkyTrain stations, to enable buyers without cars to commute, (and car owners to leave them at home) is top of mind for Minister Eby and his team. In his presentation to Real Estate Board members, he covered many other concerns with regard to homeowners, strata owners, renters, investors and landlords. Whether we agree with every innovative idea or not, it was really encouraging to hear the myriad of housing issues being seriously considered and many being put into action.
The above simply highlights our disappointment at the mystery of the real estate industry falling under the auspices of the Ministry of Finance rather than Housing. The optics of appearing to effectively deal with money laundering clearly clouded the judgement of the government when they made this move. It is essential that the Ministry of Finance consults with our industry if we are to effectively look after the interests of our clients.
Spring brings hope along with the flowers and blossoms. If you are hoping to buy your first home, upsize or downsize, we are here to help – even if the move is down the road. Preparation makes every move smoother and maximises your investment – our goal on your behalf. We welcome your questions – always happy to answer, advise and keep you covered. We remain your :
Generations Real Estate Partners in Real Estate:-
Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.