As the song says “What goes up must come down” and the long history of real estate in the Lower Mainland supports that. So…how come it’s a shock? Could be that if a buyer bought within the last decade, a rising market is the norm and if a realtor got their licence in the same time frame, same expectation.
Our current situation where residential sales in Metro Vancouver decreased by 35% in June compared to the same month last year, has significantly changed the real estate landscape. The Fraser Valley Current actually put a dollar figure on the loss of value in just 2 months of the average Abbotsford single family home – $100,000!
The Greater Vancouver Real Estate Board attributes the sudden slowdown to rising interest rates, tougher mortgage qualification measures and inflation.
This is all true, but breaking down the numbers in our own local suburban markets, we see an almost universal steep increase in inventory, leading to much greater buyer choice and stronger competition for sellers.
From Burnaby and New Westminster at our west end moving east to Pitt Meadows and Maple Ridge, the dramatic drop in sales of residential single family homes shows up in the statistics of 2 in 10 (fewer in most municipalities) homes actually selling. The only exception to that is Port Coquitlam with a sales ratio of 3.4 in 10 single family homes selling. The days when pandemic conditions left buyers feeling compelled to have greater family space and a garden, to make a move out of the City or to move closer to family are over!
On the other end of the scale, Port Moody’s attached market experienced the greatest month over month sales in June. In all our local markets attached sales (town homes and condos) were stronger, but still experiencing lower sale prices and greater inventory than in previous months. Tell tale signs of an imbalance between number of units for sale and number of ready willing & able buyers are the deals being offered by new builds and the bombardment of advertising!
This market calls for tight strategic pricing rather than a fishing trip! This because the other interesting current statistic is the short length of time it took for the sales to happen with the homes which actually did sell last month.
For sellers, price is critical when buyers have plenty of comparisons to view – realistic is the order of the day. Our team is fortunate in having been in similar dropping markets before and we don’t need that crystal ball to know what happens next! We understand that buyers are comparing homes and there is a sweet spot where both parties can agree. Remember that buying and selling in the same market is safest and we are happy to answer your questions and design a plan to suit your needs. It is a privilege to take care of our clients, whether buying, selling or both – seeing them achieve their goals is our job satisfaction. And along with longevity in the real estate business comes contacts across Canada – we can hook you up with a real estate expert in the area of your choice.
So…enjoy the summer out there and remember that we have you covered whatever the climate.
We remain your partners in real estate;
Generations Real Estate Partners:
Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.