This is the moment where we realize the value of ‘Snap Stats’ in breaking down the data as it applies to different municipalities and areas. The latest report from the Greater Vancouver Real Estate Board covering the May sales for the entire region has the headline: ‘Spring ushers in calmer housing market trends in Metro Vancouver’.
Whereas, when we review the stats from Burnaby east to Maple Ridge, we see a uniform pretty steep incline in inventory along with a noticeable decline in activity. Where sales in Pitt Meadows and Maple Ridge have been booming during the previous months, May was a very different story. Detached Maple Ridge stats show only 2.7 in 10 detached homes selling and 4.4 in 10 attached homes. Going back to the eastern most Burnaby location, the story is very similar. Coquitlam and Port Coquitlam townhomes and apartments were the standouts with brisk sales – 5.1 in 10 and 6.2 in ten homes selling.
The Real Estate Board places the blame squarely on the interest rates and much of the change in activity will indeed be due to rapidly rising rates. However those of us who have been in the real estate business for decades know the power of a self fulfilling prophecy – we have seen it time and again. So much talk about the market being “out of control” and the need to put out the fire has an effect on the psyche of potential buyers – now waiting for that drop in prices before they make a move. This is rational thinking, but when interest rates increase at this rate, the mortgage payment becomes a bigger liability than the property price! A good person with whom to discuss these implications and your qualification process is a trusted mortgage broker or banker. The numbers can be surprising.
For sellers, it is vital to carefully examine your most recent immediate neighbourhood sales and decide on a pricing strategy which will bring you the best outcome in what has become a quickly changing market.
This is where we come in with our long, local experience and the greatest drive to focus on what is best for you. There is no ‘one size fits all’ strategy – we work with you as the other half of your team – and together we attain your real estate goals. Happy to meet up for a discussion any time.
As we approach the longest day of the year, we realize that this will be a quieter summer, comparable to real estate summers in the days before social media! So…enjoy the holidays, knowing that we are still working should you want to consult on your current or future plans. We love our community, our clients, and real estate – this is where we are privileged to work and play. We look forward to seeing you out and about – possibly in sunshine!
We remain your trusted Generations Real Estate Partners –
Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.