Happy Fall – a glorious transition time between summer and winter – a bit like our real estate market not so gloriously transitioning from the hottest market on record to a slow down in both sales and prices. What appears as a bonus to buyers is a mirage when taking into account rampant inflation and rapidly rising interest rates.
In their latest report the Real Estate Board of Greater Vancouver, Andrew Lis (Board director, economics & data analytics) stated “Home buyers and sellers are taking more time to assess what this changing landscape means for their housing needs. Preparation is critical in today’s market.” We concur – this is not the time to wing it – there are lots of moving pieces right now. Our team can help with that big picture thinking so that all the objectives and risks can be balanced and a practical decision can be reached – not always the one you had in mind these days!
Overall the August sale of detached homes in the Lower Mainland slipped by 2.3% since July, but was a 7.9% increase from August 2021. Similarly August apartment sales dipped by 2% compared to the previous month, and experienced an 8.7% increase over the same month last year. The biggest year over year increase was 8.7% in the townhome category, but with a 2.5% decrease compared to July this year. So….this has not been the doom & gloom predicted and August is a big holiday month. The real story will unfold over the next while as children are back at school and home owners assess their housing situation and perhaps create a larger inventory, and buyers are emboldened with less chance of competition.
In the meantime close to home…..
The Port Coquitlam attached market (townhomes) had by far the largest sales ratio in our extended market area – with 5.7 in 10 homes selling and a rapidly dropping inventory. The detached market in Port Coquitlam was among the best selling with 3.6 in 10 homes selling – one of only 5 markets (other 4 being townhome markets) more than the 3 in 10 sales ratio. Port Coquitlam has managed the amazing feat of creating and building an awesome community centre OVER COVID – it is a forward thinking small town attracting young families.
The other detached markets west to east are all in sales ratios from 1 in 10 selling (Port Moody) to 1.7 in 10 in Maple Ridge. Interestingly these markets all have dropping inventories.
So….townhomes are the category of choice at present – appealing to both young families and downsizers who still want space not afforded by an apartment.
The months of September and October will tell the tale and we are watching the neighbourhood by neighbourhood details closely so that we can keep you covered as always.
Enjoy the changing season and the last warm rays of Fall.
Best wishes from our team – Generations Real Estate Partners,
Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.