Just as our weather is predictably unpredictable, so too is our real estate market.
When we think we have a handle on it, lo and behold the market throws us a curveball! Right now that curveball is inventory. In its analysis of the July market, the Real Estate Board of Greater Vancouver reports “a gradual rise in supply”, but when we drill down our local market stats, we find that in all except 2 of our markets (Port Moody detached & Port Coquitlam attached) our inventory has either decreased or flat lined.
This is one of several reasons that buyers are not jumping into the market in large numbers – insufficient competitive listings. While we know that summer is often a slower time for real estate, nevertheless the comparison between sales activity last month and July 2021 is startling. REBGV reported a 35.2% drop in July 2022 sales below the 10 year July sales average.
Locally our highest sales ratios last month were in the Port Coquitlam and Pitt Meadows attached category (4.5 in 10 homes & 4.2 in 10 respectively). Most of our other local markets struggled to reach 3 in 10 homes selling and many were under 2 in 10.
Boots on the ground today indicate sellers are slowly reducing prices in order to attract serious buyers, while the buyers are watching and in some cases waiting. Active buyers looking for just the right home in the right location can protect themselves by locking in a mortgage rate for as long as possible with their lender or broker. A prequalified buyer is also attractive to a seller. Getting all your ducks in a row is never a waste of time and energy. We have been lucky enough to have low interest rates for so long we have forgotten the history of rates rising to 21% in times gone by!
Sellers who are planning to purchase another home must remember that if they are accepting a lower offer than they anticipated, they are buying and selling in the same market – both parties have lower expectations (provided they are well informed).
The provincial government’s attempt to protect buyers from a hot real estate market with a “cooling off period” starts in January – clearly a case of closing the barn door after the horse has bolted! We’ll give you details and answer any questions you may have closer to the time when this new requirement comes into play.
In the meantime we are here to clarify any statistics for you and give you the detailed information with regard to your specific home and neighbourhood. We are here to satisfy your wants and needs rather than being on our own program – happy clients are the desired results. We can meet in person or virtually, whichever suits you. Happy to talk about real estate anytime. Our team is your local resource – we all live, work and play here.
Enjoy the more moderate summer weather and any holidays you take. We look forward to meeting up with many of you as our year progresses, and to seeing you around our parks, trails and supermarkets.
Generations Real Estate Partners has you covered rain or shine:
Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.