Summer came late, then seemed to vanish overnight and we suddenly find ourselves in winter! Our real estate market has not been nearly so surprising given the rapidly rising interest rates, constant reference to inflation and the mention of the possibility of a recession. All of these factors create fear in both potential buyers and sellers – the fear of no longer qualifying for a mortgage at current rates being justified. As the Bank of Canada ( and not us !) is in control of the above, our hopes are pinned on a growing inventory, which, combined with slowly dropping sale prices, would bring balance to our market.
Locally (that is from New Westminster through Burnaby heading east through the Tri Cities to Pitt Meadows and Maple Ridge) we cannot share Metro Vancouver’s current optimism with regard to inventory. Most of our markets are showing an actual drop in inventory – sometimes a sharp drop. Pitt Meadows detached market, Maple Ridge attached category & Burnaby condos & townhomes are the only markets showing even a very slight inventory increase.
The only markets selling more than 3homes in every 10 listed are Coquitlam attached (3.9 in 10), Port Coquitlam attached (3.6 in 10), Port Coquitlam detached ( 3.5 in 10) and Port Moody attached (3.3 in 10). The recent Census confirmed that there are more families than ever before living in townhomes and condominiums.
The statistics which don’t show in the Greater Vancouver Real Estate Board report or in our Snap Stats are the sale of the many brand new buildings. We see how they are progressing by watching what developers are offering to attract buyers – we have seen the anticipated incentives and price changes along with one building even offering one year free maintenance payments. So…despite low inventory, sales of brand new condos are still not as brisk as would have been anticipated at the start of the project. Future new condo sales will greatly influence our overall market values as time goes by & interest rates continue on an upward trajectory.
For those of you who purchased over the past year and are feeling some remorse, remember 2 things – firstly, you gained on the interest rates which have a much greater affect on your monthly payments than price. Secondly, as long as you hang on to your home, it will be a good investment – lots of history there and we have lived and worked through it! For those of you looking to make a purchase, remember to nail down your financing – a pre approval with a guaranteed interest rate for 90 days gives you clear guidelines and an edge when it comes to making an offer. Our job satisfaction comes from happy clients, so we love to tailor a plan specifically for a client (buying or selling) which results in happiness all round! We are delighted to answer your real estate questions and are just a phone call away.
Enjoy the season. We remain your partners in real estate:
Generations Real Estate Partners: Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.